Fraud Offences – Laws, Penalties & Defences in Australia

Fraud offences are serious crimes under Australian law and can carry severe penalties, including imprisonment, fines, and lasting damage to your career and reputation. Fraud is broadly defined as using deception or dishonest conduct to gain a benefit or cause a loss—financial or otherwise.

Whether it’s identity fraud, credit card fraud, welfare fraud, or corporate misrepresentation, these offences are prosecuted vigorously across all Australian jurisdictions.

This guide explains what constitutes fraud, how police lay charges, how the court process works, what defences are available, and the specific laws and penalties across each state and territory.

What Is Fraud?

Fraud involves dishonestly obtaining property, financial advantage, or causing a detriment by means of deception. This includes:

• Making false representations

• Withholding key information

• Using another person’s identity or documents

• Misusing company or government funds

The prosecution must prove:

1. You acted dishonestly

2. You deceived another party

3. You gained a benefit or caused a loss

Fraud can be committed by individuals, employees, business operators, or as part of organised criminal networks.

Commonwealth Fraud Offences (Federal Law)

• Legislation: Criminal Code Act 1995 (Cth) – Sections 134.1 & 135.1

• Offence:

  • Obtain financial advantage by deception (Centrelink, ATO, NDIS, etc.)

  • General dishonesty causing loss to the Commonwealth

• Penalty:

  • Up to 10 years’ imprisonment per offence

  • Offences often involve federal agencies and complex evidence

Common Types of Fraud in Australia

• Centrelink or welfare fraud

• Credit card or banking fraud

• Identity theft

• Superannuation or investment fraud

• Insurance fraud

• Tax and ATO fraud

• NDIS or Medicare fraud

• False accounting or invoice fraud

• JobKeeper/COVID-19 subsidy fraud

How Are Fraud Charges Laid by Police or Authorities?

Fraud investigations are typically initiated by:

• Complaints from victims

• Audits by government agencies (e.g. Centrelink, ATO, ASIC)

• Bank or transaction monitoring

• Surveillance or undercover operations

Evidence may include:

• Documents and emails

• Financial records

• Recorded interviews

• Electronic data or phone logs

Charges are laid under state legislation or Commonwealth laws, depending on the nature of the fraud.

Court Process for Fraud Offences

Fraud offences are considered serious indictable offences, especially if the amount involved is significant.

The matter may be heard in:

• Magistrates’/Local Court – if the value is low or charges are less complex

• District/County or Supreme Court – for high-value or serious corporate fraud

Court process:

1. First appearance – Plea entered

2. Brief of evidence – Disclosure by the prosecution

3. Negotiation or trial – Possible plea deal or full trial

4. Sentencing – Based on value, sophistication, planning, and prior record

Defences to Fraud Charges

Common legal defences to fraud include:

• Lack of intent – You did not intend to deceive or gain a benefit

• Mistake – You acted under a genuine misunderstanding

• Authority – You had legal or business permission for the actions

• Duress – You were coerced or threatened

• Mental impairment – Affects capacity to form intent