Lyn Allison (Victoria, Australian Democrats) Share this | Link to this | Hansard source

Pursuant to standing order 74(5), I ask Senator Kemp, the Minister representing the Minister for Human Services, for an explanation as to why an answer has not been provided to question on notice No. 1796, which I asked on 15 May.

Rod Kemp (Victoria, Liberal Party, Minister for the Arts and Sport) Share this | Link to this | Hansard source

Senator Allison was kind enough to indicate that she was going to ask for an explanation as to why this question had not been answered. Senator Allison, I regret to say I do not have an explanation for why it has not been answered, but I do have the answer! I therefore seek leave, Mr President, to incorporate the answer in Hansard.

Leave granted.

The answer read as follows—

QUESTION NUMBER: 1796

SENATOR ALLISON asked the Minister representing the Minister for Health and Ageing, upon notice, on 15/5/2006:

With reference to the proposed new access card for health and welfare services:

(1) (a)

What proportion of the estimated savings of up to $3 billion over 10 years is estimated to be due to fraud; and (b) can a breakdown of the figures relating to fraud be provided.

(2) (a)

What data is available on the number of fraud incidences per year for each of the 17 health and social services programs within the Human Services portfolio that will be covered by the new access card; and (b) can this information be provided broken down by the type of fraud and program for the past 5 years.

(3)

For the past 5 years, what is the estimate of annual funds illegally obtained through fraud for each of the 17 health and social services programs within the Human Services portfolio that will be covered by the new access card (can this information be provided broken down by the type of fraud and program).

(4)

What proportion of funds is illegally obtained through fraud by: (a) service providers and their employees; (b) service users; and (c) other members of the public intent on defrauding the government.

The Minister for Human Services has provided the following answer to the honourable senator's question:

(1)

The health and social services access card was not introduced as a savings measure. The savings estimate of up to $3 billion over 10 years was developed by KPMG on the basis of high level estimates of fraud and leakage, particularly in Centrelink and Medicare Australia.

(2)(a) & (b) and (3)

Medicare Australia

The available data relating to the number of fraud incidences for Medicare Australia is shown in Table 1 below. This data is not available for 2001-02 and has thus not been provided.

Medicare Australia investigates over two hundred new cases of suspected fraud each year. Where fraud can be proven, the matter is referred to the Commonwealth Director for Public Prosecution. Proven incidences of fraud are categorised only by provider, pharmacist or patient. Further categorisation by type of fraud would require close examination of case files and would be a significant project for which Medicare Australia has no assigned resources.

Table 1: Number of incidences of fraud investigated by Medicare Australia

*Other includes referrals that were not specifically categorised at the time and would require analysis of old cases to ascertain the relevant category – a project for which Medicare Australia has no assigned resources.

Medicare Australia is unable to provide an estimate of the funds illegally obtained through fraud.

Centrelink

Information regarding the number of convictions recorded for welfare fraud is available only for the entitlement to payments. The available information is shown below in Tables 2 to 6.

Table 2: Centrelink prosecution activity 2000-01 . A total of 2,788 convictions were recorded for welfare fraud involving $26.4 million for the 2000-01 financial year. Of those cases prosecuted, 98.8 per cent were convicted.

Notes:

[1] 98.8% of cases prosecuted resulted in a conviction.

[2] Non-customers prosecuted for failure to provide information and for being knowingly concerned in customers' offences.

Table 3: Centrelink prosecution activity 2001-02. A total of 2,856 convictions were recorded for welfare fraud involving $27.9 million for the 2001-02 financial year. Of those cases prosecuted, 98.7 per cent were convicted.

Notes:

[1] 98.7% of cases prosecuted resulted in a conviction.

[2] Non-customers prosecuted for failure to provide information and for being knowingly concerned in customers' offences.

Table 4: Centrelink prosecution activity 2002-03. A total of 2,829 convictions were recorded for welfare fraud involving $30.9 million for the 2002-03 financial year. Of those cases prosecuted, 98 per cent were convicted.

Notes:

[1] 98% of cases prosecuted resulted in a conviction.

[2] Non-customers prosecuted for failure to provide information and for being knowingly concerned in customers' offences.

Table 5: Centrelink prosecution activity 2003-04. A total of 2,977 convictions were recorded for welfare fraud involving $36.6 million for the 2003-04 financial year. Of those cases prosecuted, 98 per cent were convicted.

Notes:

[1] 98% of cases prosecuted resulted in a conviction.

[2] Non-customers prosecuted for failure to provide information and for being knowingly concerned in customers' offences.

Table 6: Centrelink prosecution activity 2004-05. A total of 3,446 convictions were recorded for welfare fraud involving $41.1 million for the 2004-05 financial year. Of those cases prosecuted, 98 per cent were convicted.

Notes:

[1] 98% of cases prosecuted resulted in a conviction.

[2] Age Pension includes Wife's Pension (Age) and Widow B Pension.

[3] Disability Support Pension includes Wife's Pension (Disability Support).

[4] Newstart Allowance includes Newstart Mature Age Allowance.

[5] Other includes Abstudy, Sickness Benefit, Special Benefit, Family Payment and Partner Allowance.

(4)

This information is not available from either Centrelink or Medicare Australia.