Flood payments recalled as fraud cases swamp Centrelink

Hundreds of southeast Queensland residents have been told to repay flood assistance money from the March rain bomb as Centrelink fraud investigators have been inundated with alleged fraudulent claims.

Vehicles on dry land as the Logan River bursts its banks in 2022. PHOTO: Adam Head

Centrelink’s fraud team is investigating hundreds of SEQ residents over flood payments and requests have been issued across the country ordering people to repay emergency flood relief money.

In southeast Queensland, more than 530,000 Queenslanders, mainly from Ipswich, Logan and Brisbane, filled out forms and received more than $504 million in Australian Government emergency payments after the rain bomb in February and March.

It is believed hundreds across the nation, including those in southeast Queensland, have been sent letters requesting the money be repatriated to Centrelink.

Non-government relief agency workers, who did not want to be identified, said Centrelink fraud investigators had been inundated with alleged fraudulent claims and were struggling to process the volume of possible fraud cases.

They said the main cause of the problem in the southeast was people claiming flood payments when they had not been flooded or had filled out multiple claims, which would now have to be paid back.

Water lapping at the doorsteps of houses in Logan’s Bethania in 2022. PHOTO: Adam Head

“Then there are the people who cancelled their Centrelink payments and applied for the disaster payment saying they had a job but couldn’t get to work,” the relief worker said.

“We know of people who have received up to $5000 and said their accounts were hacked which is bullsh*t as the money went into their account.

“So Centrelink’s fraud section is inundated with fraud claims and it’s now time to pay the ferryman.”

One of the major rorts that Centrelink staff were facing was from people I living in southeast Queensland changing their addresses to Shepparton or other addresses in Victoria to get flood assistance payments.

The relief agency worker said there had been complaints from legitimate residents of flood-affected places, such as Lismore, finding mail in their letterboxes addressed to people claiming to live at that address to receive flood assistance.

A spokesman for the National Emergency Services Agency, which oversees many relief payments, said the flood payments were swiftly released to those who needed them during the crisis when the usual rigorous processes for funding verification were waived.

A Logan woman, who was unable to get to work in March because her property was flooded, said she and a close relative, applied for the funding in good faith after she was told to do so by Centrelink staff.

She said it was unfair and concerning that Centrelink was now asking for the approved money back after six months and was worried for her close relative who had been asked to repay the $1000.

The woman said the relative had filled out the forms for the Disaster Recovery Payment and submitted them to Centrelink, which approved the money.

She said the relative could not get to work for three days during the March floods and parts of the acreage property was affected.

“They could not get to work and live in a caravan on land that was flooded and were deemed eligible at the time by Centrelink,” she said.

“But now, six months later, they have been asked to repay that money, which was spent replacing flooded items.

“Centrelink is now getting the money back by reducing the person’s welfare payments.

“It’s causing all sorts of money flow issues and we want to know why the flood relief money was allocated to people who were not eligible in the first place.”

Houses in some parts of Logan were inundated after a rain bomb in February and March 2022. PHOTO: Adam Head

A Services Australia spokesman said it was the organisation’s priority to support people in their time of need and anyone who has made a legitimate mistake in applying for flood assistance they weren’t eligible for, may be asked to repay the money.

“Fraudsters represent a small minority compared to the large number of people needing help,” the spokesman said.

“We have robust measures in place to prevent fraud.

“This includes specialist investigative teams and sophisticated real-time programs that flag claims at risk of potential fraud.

“All claims flagged as suspicious are assessed by specialist staff to ensure fraud is prevented without denying genuinely eligible customers of payments.

“People fraudulently claiming disaster payments will be caught and may be prosecuted.”

Those who are in Centrelink’s target group will be contacted to discuss their claim and Centrelink staff may seek further information to determine eligibility.

The Centrelink spokesman said staff would work with recipients who have already received payments but were now deemed ineligible for payments to come up with suitable repayment options.

Applications for the Emergency Hardship Assistance and Essential Services Hardship Assistance closed on September 30.