Former MP Craig Thomson Jailed for Multi-Million Dollar Visa and COVID Payment Fraud

Former federal Labor MP Craig Thomson has been sentenced to four years imprisonment for orchestrating a sophisticated visa fraud scheme and falsely claiming COVID-era emergency payments. The Sydney District Court heard that Thomson exploited his former parliamentary status to charge vulnerable visa applicants up to $50,000 for services he was not legally qualified to provide, while simultaneously defrauding government pandemic relief programs.

Thomson will serve a minimum of two years and six months before becoming eligible for parole in June 2028, bringing to a close a series of fraudulent activities that spanned his post-parliamentary career and built upon earlier offenses during his time as a union official.

Background and Context

The sentencing marks the latest chapter in Thomson's documented history of financial misconduct, dating back to his tenure as a federal MP representing the New South Wales seat of Dobell from 2007 to 2013. After being suspended from the Labor Party in 2012 and subsequently moving to the crossbench, Thomson lost his seat in the 2013 election when he ran as an independent. His expulsion from Labor came in 2014, coinciding with his first criminal conviction for fraudulent use of union credit cards.

Court records reveal a pattern of escalating fraud that Thomson committed after leaving parliamentary office. The NSW court system had previously dealt with Thomson for fraudulent claiming of two COVID-era grants in 2021, resulting in a community corrections order. Judge Robert Newlands SC noted during sentencing that these earlier interventions "did not cause him to change his ways," suggesting a systematic disregard for legal and ethical boundaries.

Key Figures and Entities

Thomson's fraud schemes targeted two distinct groups: international visa applicants seeking Australian residency and government pandemic relief programs designed to support struggling businesses. According to court documents, visa applicants paid up to $50,000 each for Thomson's assistance, believing they were dealing with someone with official capacity and expertise. In reality, Thomson was not a registered migration agent and essentially served as an unnecessary middleman, charging exorbitant fees regardless of application outcomes.

The second scheme involved the Wyong cafe, a legitimate business that Thomson used as a vehicle to claim JobKeeper payments. Court proceedings heard that Thomson submitted 13 online forms without the owners' consent, falsely representing that the cafe was operational and entitled to receive COVID-era support. The actual business owners were unaware of these applications until investigators discovered the fraud.

Legal and Financial Mechanisms

The visa fraud operation exploited weaknesses in Australia's migration system, which relies partially on self-reporting and trust in intermediaries. Thomson gained approximately $117,000 from this scheme by charging fees for services he was not authorized to provide. As Judge Newlands noted, the applicants "thought they were dealing with a skilled and trusted official" and "were unaware of the fraud" until investigations revealed Thomson's lack of credentials.

The COVID payment fraud involved exploiting emergency measures implemented during the pandemic. According to Australian Taxation Office guidelines, JobKeeper payments required businesses to demonstrate ongoing operations and genuine financial hardship. Thomson's false applications circumvented these safeguards, resulting in $61,800 in fraudulent payments that he used for personal expenses, including credit card debt and mortgage repayments.

International Implications and Policy Response

The case highlights ongoing vulnerabilities in Australia's migration system and pandemic relief programs, particularly regarding intermediary verification and benefit eligibility controls. Thomson's ability to pose as a migration authority figure despite lacking credentials raises questions about the adequacy of current licensing and verification systems.

The successful prosecution follows increased scrutiny of pandemic-related fraud, with the Australian Federal Police establishing specialized units to investigate COVID-era financial crimes. Policy experts have called for strengthened oversight mechanisms in both migration services and emergency relief programs to prevent similar exploitation by individuals with prior public service experience.

Sources

This report draws on NSW District Court sentencing remarks, Australian Broadcasting Corporation court reporting, and Guardian Australia coverage of the proceedings. Financial figures and sentencing details were verified against official court documents released in December 2025.