s we should actually have a reason to be suspicious rather than 'oh look, single parent running a business...they might be a fraud'. obviously, now with all the info provided we can see this isn't the case but initially to me it did appear that way.
actually, doesn't matter if she's earning a lot, or only a few dollars, if there is suspicion it's not being reported as earnings, it should be reported to centrelink - a dollar here, a few dollars there - it might not seem important - but every single dollar earnt is supposed to be reported - if it's not, it can be deemed fraud, and if it goes on long enough, legal action can be taken. it doesn't have to be someone claiming to be single when they're partnered, or someone claiming DSP while they're not ill - anything that isn't declared is actually going against the terms of their payment and can lead to them being prosecuted.

while you might think it's not important, think about it this way. if every person on c'link payments was earning "just a bit, but not too much" and not declaring it, there would be a hell of a lot of payments going out that shouldn't be. some payments have income limits as low as $62 per fortnight - it doesn't take much to earn that, and then every single dollar over that amount is money that should be coming off their c'link payment.

as i said earlier, it's better to report and have them checked and find they're doing the right thing, then to have an "oh, it's not a BAD kind of fraud" attitude and then have them in big trouble later.