Centrelink Fraud — A Commonwealth Offence | Your Case
Fraud — 2026-06-20 — by Sacha Sarah Smith, Civic Law
Charged with Centrelink fraud in Queensland? It is a Commonwealth offence, not a state one — and that changes the court process, the legislation, and the.
You have received a letter from Centrelink about an overpayment — or a court summons from the Commonwealth Director of Public Prosecutions. Either way, you are facing a fraud charge, and the way this charge works is different from most criminal charges dealt with in Queensland courts.
Centrelink fraud is a federal offence, not a Queensland state offence. It is prosecuted by the Commonwealth Director of Public Prosecutions (the CDPP — the federal equivalent of the Queensland DPP), and it is sentenced under Commonwealth legislation, not under the Queensland sentencing laws that apply to charges like assault, drug possession, or drink driving. The sentencing options available to you — including ways to avoid a criminal record — are different from what would apply to a state charge. A lawyer who handles your matter needs to know how Commonwealth sentencing works, because the available outcomes and the way submissions are made differ from the Queensland framework.
The Charge
The most common Centrelink fraud charge is obtaining a financial advantage from a Commonwealth entity under section 135.2(1) of the Criminal Code Act 1995 (Cth) — the federal Criminal Code , which is separate from the Queensland Criminal Code . The prosecution must prove that you received Centrelink payments you were not entitled to, and that you knew or believed you were not eligible at the time.
The maximum penalty is 12 months imprisonment. Most Centrelink fraud matters are charged under this section and dealt with in the Magistrates Court .
For larger amounts or more deliberate conduct, the charge may be laid under section 134.2 — obtaining a financial advantage by deception. This carries a maximum penalty of 10 years imprisonment and is dealt with in the District Court . The difference between the two charges usually comes down to the amount of money involved and whether the prosecution says you actively deceived Centrelink — for example, by providing false documents — rather than failing to report a change in circumstances. If your charge is under section 134.2, the process is longer, the preparation is more extensive, and the fees reflect that — see the District Court plea fee .
The Centrelink Interview
If Centrelink has contacted you about a potential fraud investigation and asked you to attend an interview — get legal advice before you attend.
The Centrelink interview is a formal record of interview conducted under caution. Everything you say is recorded and becomes part of the prosecution brief. It is tendered as evidence in court. The same principles that apply to police questioning apply here — you have the right to silence, and exercising it cannot be held against you. Our guide on what to do when questioned by an authority sets out how that works.
Anything you say in the interview that is inaccurate, incomplete, or inconsistent with the documents Centrelink already holds will be used by the prosecution. The interview is not a conversation — it is an evidence-gathering exercise. The time to make submissions about your circumstances is at court, through your lawyer, not in the interview room.
There is often a gap of a year or more between the Centrelink interview and the charge being laid in court. The fact that you have not heard anything does not mean the matter is not proceeding.
How Commonwealth Sentencing Differs
If you have been charged with a Queensland offence — an assault, a drink driving charge, a drug offence — that charge would have been sentenced under the Penalties and Sentences Act 1992 (Qld). Centrelink fraud is sentenced under Part IB of the Crimes Act 1914 (Cth). The sentencing options are different, and in some respects they work in your favour:
Section 19B — no conviction recorded. Under section 19B of the Crimes Act 1914 , the court can find the charge proved but dismiss it or discharge you without recording a conviction. The practical effect is that no criminal conviction goes on your record — you do not have to disclose it on job applications, and it does not appear on a criminal history check. This is the Commonwealth equivalent of a section 12 order under the Queensland Penalties and Sentences Act . For a first Centrelink fraud charge with lower amounts and proper submissions, a section 19B dismissal is a realistic outcome.
Recognizance release orders. Where a Queensland court might place you on probation, the Commonwealth equivalent is a recognizance release order under section 20(1)(a) of the Crimes Act 1914 . The court releases you without passing sentence, on conditions — good behaviour for up to five years, repayment of any amount owed, and any other conditions the court considers appropriate. If you comply with those conditions, the matter is finished.
Repayment. The court looks at what you have done about paying the money back. If you have started a repayment plan with Centrelink before your court date, or repaid part of the overpayment, that goes directly in your favour at sentencing. If you have not, the court will want to know why. Starting a repayment arrangement before court is one of the most effective steps you can take.
What the Court Considers
The amount of the overpayment is the starting point. A $5,000 overpayment is treated differently from a $150,000 one. Beyond the amount, these are the factors that affect the outcome:
Whether you have made repayments — or entered a repayment plan with Centrelink before your court date
Whether the fraud was active or passive — see below
Your circumstances at the time — financial hardship, mental health, caring responsibilities, difficulty navigating the Centrelink system
How long the overpayment continued
Your criminal history — if this is your first offence and you have no prior dishonesty convictions , the court treats that as a significant factor in your favour
Whether you cooperated with the investigation
For first offenders with lower amounts who have made repayments and can put proper material before the court, non-custodial outcomes — including no conviction recorded — are regularly achieved in the Cairns Magistrates Court . For larger amounts, repeat offending, or active fraud, the outcomes are more serious — including imprisonment. Where you land depends on what the court sees at sentencing .
The CDPP provides the court with a table of comparable sentences from other Centrelink fraud matters across Australia. That table sets out what other people in similar circumstances — similar amounts, similar conduct — have received. It is one of the main tools the magistrate uses to decide where your matter sits.
Active Fraud vs Passive Fraud
Courts draw a clear line between two types of conduct, and where yours falls makes a real difference to the outcome:
Active fraud means you deliberately provided false information to Centrelink — you declared income you did not earn, submitted forged documents, or created a false identity. Courts treat this more seriously because it involves a deliberate act of dishonesty directed at a government agency.
Passive fraud means you failed to report a change in your circumstances — you started earning income and did not notify Centrelink, your relationship status changed and you did not update it, or you went overseas and did not report the travel. The overpayment accumulated because you did not do something you were required to do, not because you actively lied. Many people in this category did not fully understand their reporting obligations, or were dealing with circumstances that made it difficult to engage with the system.
The prosecution may characterise your conduct differently from how you see it. Part of the sentencing process is making sure the court understands which category the conduct actually falls into, and that is handled in the written submissions.
Talk to Civic Law
If Centrelink has contacted you about a fraud investigation, or you have received a court summons from the CDPP, get legal advice before your interview and before your court date. Civic Law handles Centrelink fraud matters in the Cairns Magistrates Court and the Cairns District Court . Call Sacha Sarah Smith on 0425 429 458 .
Centrelink Fraud — Magistrates Court Plea
Complex Fraud — Multiple Periods or Large-Scale
District Court Plea
Summary Hearing — Contesting the Charge