The Federal Government says more than 1,400 disaster assistance payments may have been claimed fraudulently.

Centrelink has found people who have claimed payments when their homes were not affected, and Human Services Minister Tanya Plibersek says hundreds of other cases are being investigated and reviewed.

She says it is abhorrent behaviour and those who are caught may face criminal charges.

In the wake of Queensland's flood and cyclone disasters the Government offered a number of payments to those affected.

People who lost power for more than 48 hours were eligible for a $1,000 payment.

Ms Plibersek says some of the alleged fraud cases have come to light from tip-offs.

"One typical case is a man who was paid $1,000 in late January saying that he was unable to return to his residence," she said.

"We checked after a tip-off from the public and we found, based on talking to the local council, talking to the real estate property manager, that the property hadn't in fact been flooded, so that fellow will have to repay the $1,000 and he is also facing prosecution.

"We have also got more sophisticated ways of checking that people are actually where they say they were at the time of the flooding."

But Ms Plibersek has defended the way the cash is handed out.

"It is very important to understand that the vast majority of people who make these claims are absolutely entitled to the assistance, and not only are they entitled to it, they desperately need it," she said.

"We are talking in many cases about people who have swum out of their homes wearing only the clothes they have got, leaving behind not just all of their possessions but even all of their identification."

She says while some wealthy people are entitled to disaster relief payments, it would be up to the community to decide if future payments should be means-tested.

"The way the payments are being made at the moment is in line with previous disasters for a number of years now," she said.

"If the Australian community want to have a debate about changing those parameters then that is a debate for the community to have."