A record amount of Australians are reporting friends and family who they believe are rorting Centrelink.

New South Wales had the highest amount of cheats investigated, with 31041 tip-offs made to authorities in the 2016/17 period, new figures by the Department of Human Services (DHS) revealed.

Queensland followed with 25,487 alleged fraudsters probed, closely followed by Victoria with 21471 people reported.

Andrew Weisman from the DHS described the number those committing Centrelink fraud as being at an all-time high.

“It’s an epidemic and it needs to be dealt with,” Mr Weisman told 9NEWS.

The federal government is progressively setting up taskforces to stamp out Centrelink fraud. (File image)

There are many example of people reporting family members on the DHS website .

One person wrote on a blog they reported their brother and girlfriend after they flashed money and gold jewellery around, after claiming single parent benefits.

Minister for Human Services Alan Tudge said these kinds of offenders will be prosecuted.

“They are effectively stealing from other Australians, and we want to identify those people and take the appropriate course of action,” Mr Tudge said.

The federal government has recently set up taskforces in Queensland’s Caboolture and Ipswich to stamp out Centrelink fraud.

They are now looking at new locations to continue the crackdown, with Logan believed to be one of the areas set to be targeted.