Media Release

Combating welfare fraud to keep the system fair

13 May 2008

The fight against welfare fraud has received a $138 million boost in today’s Federal Budget, Minister for Human Services, Senator Joe Ludwig, announced.

The Budget projects savings of $728 million over the next four years as a result of the Government’s compliance efforts.

“This initiative, which will generate a net dividend of almost $600 million, signals to Australian taxpayers that we are serious about ensuring their taxes are well spent and that those who receive benefits do the right thing,” Senator Ludwig said.

“Welfare fraud is a criminal offence liable to long jail sentences – as many cases of fraud have showed this year alone.

“The social security system exists to give a helping hand to those people in most need. People who commit offences undermine community support for the system.”

“The majority of Centrelink customers are honest and combating welfare fraud is about making sure that the right payments go to the right people at the right time.”

The Government’s Budget measures give Centrelink extra resources to detect and investigate suspicious claims.

They allow Centrelink to carry out extra reviews when it detects discrepancies through data-matching with the Australian Taxation Office.

“Data-matching is catching up with fraudsters at unprecedented rates and the Government is expanding this smart technology,” Senator Ludwig said.

Today’s Budget will also allow the Government to build on a data-exchange pilot between Centrelink and the Commonwealth Bank.

And we are working at connecting this program to other major financial institutions.

“This data-exchange will allow Centrelink to identify hidden or under-declared financial assets of claimants,” Senator Ludwig said.

“This announcement sends a clear message that the Government is serious about cracking down on welfare fraud.”

Media Contact:  Joe Scavo 0413 800 757.