Welfare cheats on notice

Crackdown recovers nearly $700,000 from Tasmanians

ALMOST $700,000 has been recovered in Tasmania as part of a national crackdown on wealthy welfare cheats, and others abusing the system have been warned they will be caught.

A joint operation run by the Department of Human Services (DHS) and the Australian Transaction Reports Analysis Centre (AUSTRAC) targeted welfare recipients who had large amounts of unexplained wealth pass through their bank accounts — 1000 cheats were identified nationally.

Those unable to explain to DHS where the money had come from or why they had failed to declare it as income were then ordered to repay their benefits, saving Australian taxpayers $43.4 million.

The crackdown, which is ongoing, uses the same powers AUSTRAC and law enforcement agencies use to target money launderers, drug dealers and terrorists.

The average amount each welfare recipient was ordered to repay was $43,000.

While the department could not provide the exact number of Tasmanians caught in the crackdown, based on the average repayment ordered more than 10 people from this state would likely have been nabbed.

In total, $672,245 in overpayments were recovered in Tasmania.

The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 requires banks and other financial institutions to automatically report suspicious transactions to AUSTRAC. Data matching enables those suspicious transactions to be instantly crosschecked against the department’s records to determine if an overpayment had occurred.

Human Services Minister Michael Keenan warned those defrauding the welfare system they would be found.

“Protecting the integrity of the welfare system is a key priority for the Turnbull Govern- ment and no stone would be left unturned to identify those abusing the system,” Mr Keenan said.

“Australia has a very generous welfare system and it needs to operate with integrity to ensure those who genuinely need our support receive it.

“But for those that are defrauding the system, you will be caught, you will be forced to repay that money and you will face significant consequences.”