Kailah Dianne Jessie Maynard, 27, was instead given three months' prison suspended on the condition she be of good behaviour for three years.

Maynard declared just $6000 from the $65,000 she earnt over two years while working at the Tasmanian Aboriginal Centre in Launceston on a casual basis.

The fraud involved 27 false income reports made to Centrelink over the period.

Yesterday Launceston Magistrate Tim Hill said there was no doubt she'd done it deliberately.

"Clearly you saw this as a way to pull you out of some difficulties," he said.

Mr Hill chose not to incarcerate Maynard because she was a first offender, had pleaded guilty early on and had significant personal problems, which he did not detail.

The court previously heard that Maynard had repaid nearly $12,500.

Mr Hill also ordered her to perform 126 hours of community service.