Fraud & Deception Charges

Written by Justin Chua, Principal Solicitor, Chua Tan Associates. Last reviewed 5 October 2026. General information about Victorian law, not legal advice.

Fraud matters are usually built from documents: invoices, bank statements, emails and claim forms. They are often investigated for months before charges are laid. Early advice helps you understand your options before you respond to investigators.

Victorian offences

• Obtaining property by deception (Crimes Act 1958 (Vic) s 81): up to 10 years.
• Obtaining a financial advantage by deception (s 82): up to 10 years.
• Theft (s 74): up to 10 years. Often charged alongside deception, for example in employee fraud.

The prosecution must prove a deception, that you acted dishonestly, and that the deception caused you or someone else to obtain the property or advantage. For obtaining property (s 81) it must also prove an intention to permanently deprive the owner. Whether you were dishonest, as opposed to careless or mistaken, is often the real contest.

Commonwealth fraud

Fraud against Commonwealth agencies such as Services Australia (Centrelink and Medicare), the ATO and the NDIS is charged under the Commonwealth Criminal Code and prosecuted by the Commonwealth Director of Public Prosecutions.

• Obtaining property or a financial advantage by deception (ss 134.1, 134.2): up to 10 years.
• General dishonesty (s 135.1): up to 5 years.
• Obtaining a financial advantage (s 135.2): up to 12 months.
• Conspiracy to defraud (s 135.4): up to 10 years.

What happens, step by step

1. Investigation. You may receive a letter inviting you to an interview, or an agency may first raise a debt. Get advice before responding: admissions made to recover a debt can be used in a prosecution.
2. Charges. Many Victorian deception charges can be heard in the Magistrates’ Court if the magistrate considers it suitable and you consent. Larger or more complex frauds go to the County Court.
3. Brief of evidence. In fraud matters this can be large. We check the calculations, because the alleged loss may be overstated or include amounts that were never dishonestly obtained.
4. Negotiation. Charges, the amount alleged and the summary of facts can often be negotiated.
5. Restitution. Repaying money before sentence is usually given significant weight, but it should be done through your lawyer so it is properly recorded and does not amount to an unplanned admission.
6. Plea or contest, followed by sentencing.

Penalties and realistic outcomes

The court weighs the amount, the period, the level of planning, any breach of trust (for example, by an employee or bookkeeper), whether the money was repaid, and your personal circumstances. Outcomes include diversion for small first-time matters, fines and community correction orders, and imprisonment for large or sustained fraud. The court can also order compensation or restitution.

A dishonesty conviction can have serious consequences for employment, professional registration, company directorships and visas. Avoiding a conviction is often a key goal in lower-level matters.

Frequently asked questions

I have received a Centrelink debt letter. Is that a criminal charge?

No. A debt notice is an administrative step. But Services Australia may also refer the matter for prosecution, so get advice before agreeing to the debt or explaining the overpayment.

Will paying the money back stop the prosecution?

Not automatically, but repayment is usually viewed favourably and can support diversion or a lower sentence.

Can fraud charges be heard in the Magistrates’ Court?

Many Victorian charges can, if the magistrate considers the matter suitable and you consent. The Magistrates’ Court can then impose up to 2 years’ imprisonment for one offence and 5 years in total. Commonwealth charges can be heard by a magistrate only if the prosecution and you both consent, and lower limits apply: generally 12 months or 2 years per offence, depending on the offence.

What if I made a mistake on the form?

A genuine mistake is not dishonesty. The prosecution must prove you acted dishonestly, and the evidence of what you knew and intended is often contestable.

Penalties and procedures on this page reflect Victorian and Commonwealth law as at the review date shown above. Maximum penalties are rarely imposed; the sentence in any case depends on its own facts.