It's not a crime to owe excess money to Centrelink, and if you do, you probably won't go to jail. If Centrelink suspects you are receiving more social security funds than you should, they will investigate your case. This investigation might be triggered because they regularly check to see if the information they have matches up or because they received a tip from someone else.
Crimes against Centrelink are taken seriously. However, Centrelink rules state that if you were overpaid, you might not have to go to jail. You could get a fine or go to jail only if you don't follow Centrelink's rules and don’t pay back the money. In some cases, they may still charge you with a crime even if you pay back the debt.
If you’ve been charged with a crime by Centrelink, our expert criminal lawyers can help you defend yourself. Fill in the form on this page to request a free consultation or call us today.
Will I Go To Jail For Centrelink Debt?
In contrast to criminal charges related to trafficking a commercial quantity of drugs, which can lead to severe penalties including imprisonment, Centrelink debt issues typically result in fines or other penalties. Although Centrelink crimes are very serious, it is not common for you to end up in jail because you were overpaid. However, debt repayment may be necessary if you break a Centrelink rule. This could happen in several cases:
- If you lie to Centrelink or give them incorrect information.
- If you knowingly fill out a form incorrectly and receive a payment that you know you're not entitled to.
- If you receive a payment that is more than the amount you should have received.
- If you purposely obtain an allowance, pension, or other benefit that you know you don't deserve.
This doesn't mean you will go to jail right away. Centrelink will offer to help you solve the problem so that you don't get charged or sent to jail.
What To Do When You've Been Paid Too Much?
Centrelink can find out that you were overpaid by looking at your loan, debt, or private details. Then they will take a few official steps before charging you and taking you to court.
- Centrelink finds an error and checks to see if you owe money: They may discover they paid you too much after you make a change or undergo a review. When they find out they paid you too much money, they check to see if you still owe money. You might not have to pay back the loan if they can deduct the extra money from your next payment to make up for the mistake or if the overpayment is small and it wouldn't be worth their time or money to recover it.
- Centrelink will call you to tell you what you need to do and why you owe money: They will always send you a message if you owe money. The letter will tell you why you owe money and how much you were overpaid. There will also be a date on the letter when you need to start paying back the money.
What If You Can't Pay Back The Loan?
You should call Centrelink before the due date. They might have to take further action if you don't get in touch with them before the due date. If you receive a payment from Centrelink after the due date, they will start deducting money from your monthly payment.
What If You Are Considering Bankruptcy Or A Debt Deal?
You can handle your debt and avoid bankruptcy with a debt deal. A debt agreement is an understanding between you and your creditors, in this case Centrelink, that both parties must follow. You can still file for bankruptcy if a debt deal doesn't help you get out of debt. Even if you file for bankruptcy or enter into a debt agreement, your bills will still be there. This means that Centrelink won't try to collect some of your debts while you are in bankruptcy or an agreement. According to Part 11 of the Public Governance, Performance, and Accountability Rule 2014, Centrelink must take further steps if, by the due date, you haven't:
- Paid back the money you owed.
- Set up a payment plan with them and asked them to stop collecting the debt.
Centrelink May Investigate You
If Centrelink suspects you of Centrelink fraud, they may conduct a thorough investigation. They might ask you to record a conversation. It's up to you if you want to participate in this conversation. Before you go to an interview, you should talk to a lawyer. They could also visit your home to ask questions. If this happens, you should consult a lawyer before answering any questions. Although not often practised, after reviewing your case, Centrelink may ask the Commonwealth Director of Public Prosecutions to file a criminal charge against you. This means that you can receive a fine or even go to jail.
Conclusion
Centrelink debt is a serious issue that can lead to legal trouble. While repayment is essential, legal action may still occur. It is crucial to communicate with Centrelink and seek legal help if you are being investigated or charged. Overall, dealing with Centrelink debt requires taking prompt action and possibly obtaining legal assistance to mitigate the consequences.
