In an effort to crack down on fraudulent claims, the Department of Financial Assistance has changed its legislation.

Amendments were made to the Financial Assistance Act 2001 "imposing penalties for those giving false or misleading information to the Department in quest for an award," according to a press release from Government this week.

The changes went into effect on August 1 and now prevent system abusers from immediately re-applying for an award.

According to Government's release, a recipient whose award has been revoked for the first time by the Director may only apply for another award three or more months after the award was revoked.

If it is the second revocation, at least six months must have elapsed and, in the case of a third or subsequent revocation, the recipients must wait a year before reapplying. Arrears can also not be incurred during these periods, Government said.

In May, Social Rehabilitation Minister Dale Butler told the House of Assembly the changes were necessary to stem increased incidents of system abuse and that civil servants were frustrated by people returning the next day to continually exploit the system.

The Department has seen people lying about their assets — including property, vehicles and shares — as well also giving false information about income — for example, by failing to declare income from a second job.

Government has asked Financial Assistance users to clear up any misunderstandings or misinformation in their files with the Department by the end of the month.

"The Department implores all persons who are currently on assistance, especially those who have dependents who benefit from the assistance afforded them via the Department, who may have given false or misleading information to date, to make this information known to their individual workers prior to August 31, 2008," Financial Assistance warned in its press release.

"Thereafter, if false or misleading information is determined, the penalty will take effect immediately."