Welfare cheats costing Australia almost $5 billion: report

Welfare cheats have cost the nation almost $5 billion with more than one million debts owed to Centrelink alone, according to The Daily Telegraph.

The scale of the fraud including Newstart, the Disability Support Pension, Medicare, Youth Allowance and family payments, is so severe the government has called upon the Australian Federal Police to set up a taskforce to pursue criminal charges and attempt to recover some of the debt.

Human Services Minister Stuart Robert said the taskforce, which will be announced today, will also act as a deterrent to anyone thinking of rorting government payments.

As well as facing criminal charges and fines, those found to have knowingly over-claimed benefits could have their assets seized.

Mr Robert said it was an "unfortunate reality" that some people thought it was acceptable to rort the system by seeking more benefits than they were entitled to.

"Anyone taking welfare payments dishonestly has to understand this is theft, and the consequences are serious," the minister said.

"You will get caught, you will have to pay the money back and you may be prosecuted and go to prison. If you have profited from the fraud your assets may also be seized as proceeds of crime."

As so September 1.1 million known Centrelink debts totalled $3 billion.

The Department of Human Services has also identified an additional $1.7 billion in overpayments, which the AFP taskforce will pursue.

Nine AFP officers as well as an assistant commissioner will work on the taskforce along with 300 officers from the Department of Human Services.