Government spruiks $3 billion in childcare fraud savings

The government says it has saved a staggering amount of money as a result of investigations into childcare fraud.

A crackdown on childcare fraud has saved the taxpayer $3.1 billion, according to the federal government.

Five people including an alleged ringleader have been charged over what Federal Police claim is a “phantom children” fraud ring.

A Melbourne businesswoman Ola Ouda, 42, from Doncaster East was charged along with her partner Amjad Shehada, 46, with fraud offences including dishonesty charges and conspiracy to cause a loss to the Commonwealth.

Ms Ouda owns Prime Family Day Care in Thomastown on Melbourne’s northern outskirts.

Ola Ouda and her boyfriend Amjad Shehada have been arrested over an alleged childcare fraud ring. Picture: Facebook

Ola Ouda has been charged with fraud. Picture: Facebook

More than 120 Australian Federal Police (AFP) members and 110 officials raided 10 properties across eight suburbs in Victoria and New South Wales on Wednesday.

AFP Commander of Investigations Todd Hunter said the two had used the money to fund a luxurious lifestyle including properties and holidays.

It’s alleged that they claimed government subsidies despite some children at the institution receiving no care.

Education Minister Dan Tehan said that more than $3 billion had been saved as a result of investigations into childcare fraud.

“The government is absolutely determined to make sure that it continues to crackdown on any fraud that is occurring against the Australian taxpayer,” Mr Tehan said.

“We have now seen savings of $3.1 billion made as a result of activity against fraud of the child care system.”

Education Minister Dan Tehan says the government has saved more than $3 billion due to investigations into childcare fraud. Picture: NCA NewsWire / Gary Ramage

Mr Tehan said that over the last two years, federal authorities had put in place an additional 380 officials to investigate childcare fraud.

“We will continue to explore and investigate anything that we see is suspicious with these criminal networks seeking to exploit the Australian taxpayer,” he said.

“Sadly, there will always be people who want to exploit the Australian taxpayer.

“So we will seek to always be investigating and making sure that we’ve got the resources to ensure this isn’t occurring.”