Welfare cheats exposed working in family day care

MORE than 500 welfare cheats who rorted $23 million from the Federal Government have been exposed after a compliance investigation.

The mostly Victorian residents were identified through a pilot compliance program, which found 575 people working in family day care had failed to declare their income while claiming welfare benefit payments.

Human Services Minister Marise Payne said the significant amount of undeclared income revealed there were individuals and organised groups who were deliberately trying to cheat the welfare system.

She said, in several cases, welfare recipients who were also family day care operators and educators were using the same accountants to "hide income and claim exorbitant expenses".

While most welfare recipients and family day care operators were not cheating the system, the pilot will now be rolled out across the entire welfare compliance system.


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