Hunt for welfare cheats

ALMOST 170,000 Australians with welfare debts racked up through false claims are being warned to sign repayment plans or cop interest charges.

The Federal Government is pursuing the former welfare recipients in an effort to recoup more than $900 million.

One Queensland resident pocketed $800,000 by lodging fraudulent claims for “fictitious children” and an undeclared business income.

The rorter, who earns an income and is not entitled to welfare, has coughed up a one-off $3000 repayment but is refusing to negotiate any further arrangements to clear the debt.

Another incurred $400,000 in debt 10 years ago by claiming unemployment benefits under false identities. They later repaid about $10,000 but have fallen off the radar.

“All those being contacted no longer receive a benefit but previously received payments they were not entitled to and have made no effort … to repay what they owe,” Human Services Minister Michael Keenan said yesterday.

“For those who refuse to take action, interest charges are only the beginning. My department will also look at other measures such as garnishing wages and tax refunds or referring matters to external collection agents.”

People have been given 28 days to commit to a repayment plan or be hit with interest of 8.77 per cent.