A HORSHAM magistrate gave a Minyip woman a four-month suspended jail sentence at Horsham Magistrate's Court on Wednesday after she accepted $39,573 in Centrelink benefits while she was working.

Magistrate Andrew Capell ordered Lynn Mary Vinen, 51, of Main Street Minyip, to pay back the remaining balance of $36,233.74 and court costs of $512.80.

Mr Capell gave Vinen the four- month sentence on the undertaking she behaved herself for the next 18 months.

The court heard Vinen received a disability support pension from 2000 to 2007 but did not tell Centrelink she was working casually at different periods during that time.

Vinen earned $116,714 from her casual work during the seven years.

At a Centrelink benefit review in March 2003, Vinen was asked if she was working and she replied no.

She was eventually found out after Centrelink did a cross check with the Australian Taxation Office.

On December 3, 2007, Centrelink officials interviewed Vinen where she made full admissions.

Defence solicitor Rita Sparham said Vinen was extremely remorseful and embarrassed about the fraud.

Ms Sparham said Vinen was suffering depression after her sister and mother had died.

"She had been the rock in the family but became so stressed she couldn't cope with everyday life," she said.

Mr Capell dismissed defence claims that Vinen was suffering short-term memory loss.

"This is serious, she goes to the assessment and she lies. That's not short-term memory loss," he said.

Magistrate Capell said theft from the Commonwealth was an extremely serious matter.

"It happens a lot and should be a message to others it won't be tolerated by the courts," he said.

"Every time someone gets money they are not entitled to, someone else misses out and there are many people who legitimately need it."