I work with a Social Security Lawyer who tells me of some whopping stories about people who have defrauded Centrelink and have debts of many thousands - some of $200k. They are then charged and have to deal with the court system. For many of these people, they have no other criminal record, but the defrauding Centrelink charge is like a black smear across their lives - they face gaol terms and are in major trouble.
Meanwhile, if they were dobbed in much earlier when the debts were much smaller, Centrelink can dock their pay without placing criminal charges - so yes, dobbing them in can be good for them.
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