David Jull (Fadden, Liberal Party) Share this | Link to this | Hansard source

My question is directed to the Minister for Human Services. What action is the government taking to crack down on welfare fraud?

Joe Hockey (North Sydney, Liberal Party, Minister for Human Services) Share this | Link to this | Hansard source

I thank the member for Fadden for his question. I recognise his concern and the concern of many others to protect taxpayers’ interests but at the same time ensure that those people entitled to welfare receive it. Fraud in the welfare system is like a cancer: it has a profound impact on recipients and it has a profound impact on the credibility of the system. I can report on a previously unreported operation conducted by Victoria Police and Centrelink in the last few days—that is, Operation Oxford. This involved a roadblock in which 500 vehicles were stopped for inspections and drivers licence checking. Of the 500 vehicles stopped, 220 commercial drivers, including taxi drivers and courier drivers, were questioned by Centrelink. This operation identified 13 welfare recipients who were working without declaring their earnings. These people have now had payments cancelled, saving the taxpayer $100,000 a year. Another 20 people are having their cases and records closely examined.

Last year Centrelink undertook 133 of these special covert operations, which resulted in over 10,000 reviews of welfare payments to individuals. This generated savings to the taxpayer of more than $30 million in one year alone. We are determined to crack down on welfare fraud and we issue a general warning: if people are engaged in fraudulent activity in relation to welfare, we will get them.