Centrelink Fraud Is a Commonwealth Offence — What That Means for 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 penalties.
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.
<a href="/theft-fraud-lawyer-cairns">Centrelink fraud</a> 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 <a href="/sentencing-explained">sentencing laws</a> that apply to charges like assault, drug possession, or drink driving. The sentencing options available to you — including ways to…
The Charge
The most common Centrelink fraud charge is obtaining a financial advantage from a Commonwealth entity under section 135.2(1) of the <em>Criminal Code Act 1995</em> (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 <a href="/cairns-magistrates-court">Magistrates Court</a>.
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 <a href="/cairns-district-court">District Court</a>. 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…
The Centrelink Interview
If Centrelink has contacted you about a potential fraud investigation and asked you to attend an interview — <strong>get legal advice before you attend.</strong>
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 <a href="/police-questioning-lawyer-cairns">police questioning</a> apply here — you have the right to silence, and exercising it cannot be held against you. Our guide on <a href="/what-to-do-if-questioned-by-police-queensland">what to do when questioned by an authority</a>…
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 <em>Penalties and Sentences Act 1992</em> (Qld). Centrelink fraud is sentenced under Part IB of the <em>Crimes Act 1914</em> (Cth). The sentencing options are different, and in some respects they work in your favour:
<strong>Section 19B — no conviction recorded.</strong> Under section 19B of the <em>Crimes Act 1914</em>, 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 <em>Penalties and Sentences…
<strong>Recognizance release orders.</strong> Where a Queensland court might place you on probation, the Commonwealth equivalent is a recognizance release order under section 20(1)(a) of the <em>Crimes Act 1914</em>. 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.