Thirty-eight family members busted for $2 million Centrelink fraud

Thirty-eight members of the same western Sydney family fraudulently claimed more than $2 million in Centrelink benefits.

The network of family fraudsters was uncovered following a tip a western Sydney businessman had failed to declare his income, News Corp reports.

Together the 38 family members claimed $2.1 million in Centrelink benefits, including Youth Allowance, Newstart, Carer Payment, Disability Support Pension and Parenting Payment.

One person claiming income support paid $300,000 off a mortgage in just over two years, while another received benefits despite an undeclared income from owning three properties.

In more than one instance people were falsely claiming the disability support pension while family members were claiming carers’ allowance for looking after them — even though in some cases they were living in another state.

One person paid almost $1 million into a bank account over 11 years without ever declaring any income.

The cash is believed to have come from undeclared business or employment earnings and no tax had been paid on it.

Human Services Minister Senator Marise Payne said 19 members of the family have had their welfare payments cut while five could face prosecution.

"From a single piece of information the department’s specialist fraud team uncovered a web of people dishonestly claiming payments," she said.

"As a result of the investigation nine people have to repay more than $50,000, including two people who tried to hide over $100,000," Ms Payne said.

Repayment orders have been made against all 38 members of the family, ranging from $1000 to $137,000.

"This rort was a blatant abuse of the welfare system and an offence to hardworking Australians who expect their taxes to be spent helping those in need," Ms Payne said.

Source: News Corp