To those that would never dob in a friend who broke the law ...
If they commit murder, you wouldn't dob, you'd wait for them to hand themselves in?
If they rob a bank, you wouldn't dob either?
Same thing here, the law is law. This is Fraud. This is against the law. End of story.
What is fraud?
Centrelink fraud is committed when a person knowingly gives false and misleading information to get a payment/s they should not be getting or do not tell Centrelink information they are obliged to tell us.
Fraud can be committed in a number of ways such as providing Centrelink with incorrect information either on forms completed, false statements, false identification or overall deliberately telling Centrelink the wrong information.
So if this friend is knowingly giving Centrelink false information to live in a life of luxury, then that is fraud. That is breaking the law.
I would never just sit back and wait for someone to hand themselves in if they broke the law. If I knew about it, then I have a right to take appropriate action.