Federal Government reveals latest widespread childcare claim rorting

A MELBOURNE grandmother ripped off taxpayers to the tune of $900,000 in childcare benefits as part of “hotbed for shonks and rorters” operating in suburban communities.

A MELBOURNE grandmother ripped off taxpayers to the tune of $900,000 in childcare benefits as part of “hotbed for shonks and rorters” operating in suburban communities.

The Federal Government revealed the latest widespread rorting of childcare claims on Monday amid new measures designed to save taxpayers up to $250 million a year.

Education Minister Simon Birmingham said a crackdown on the system would set new maximum rates and age limits for children accessing child care fee assistance in family day care services.

The Herald Sun first revealed in 2014 that more than $23 million welfare fraud in the family day care sector had been operating mainly out of Victoria.

The Federal Government has revealed the latest widespread rorting of childcare claims. Picture: iStock

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The government introduced regulations into Parliament on yesterday which set tighter controls to stamp out abuse of the grandparent childcare benefit and special childcare benefit.

Departmental figures show that in one Melbourne suburb there were 279 family daycare educators who provided care that did not attract either payment, charging an average of $9 an hour.

In the same suburb there were 53 educators who administered the grandparent benefit — they charged an average $31 an hour.

The Herald Sun understands that all the services the rorting grandmother was associated with have been cancelled — including two which have been the focus of police action — and the Government plans to chase lost monies.

The taxpayer funded benefit provides 50 hours of care a week in approved child care services for children who live with their grandparents.

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Nationally 80 services have been suspended or cancelled nationally since July 1 last year, with 27 services of those in Victoria.

Senator Birmingham said the latest clamp down came on top of the Federal Government’s efforts to close various loopholes that had prevented $945 million being paid to dodgy child care providers over the past three years.

“These new measures strike the sensible balance between a need to stamp out unscrupulous family day care providers but importantly safeguards the legitimate operators and the families who depend on them,” he said.

In December, 2015 police arrested six people and seized luxury cars, bank accounts and two Melbourne properties over the alleged rorting of more than $15 million in childcare benefits.

An Australian Federal Police-led taskforce, codenamed Operation Caulis, raided a number of properties across the western Melbourne suburbs of Point Cook, Wyndham Vale, Thornbury and Tarneit.