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An elderly Brisbane man will spend the next eight months in jail for cheating Centrelink out of $50,000 to support his lifestyle of drinking and betting on horses.

Mervyn Thomas Guilk, 68, claimed $49,000 in unemployment and aged-pension benefits for nearly five years between June 2002 and March 2007 when he was employed and earning a wage, Brisbane District Court was told.

In court today the divorced father of five pleaded guilty to one charge of dishonestly obtaining a financial advantage from Centrelink.

Commonwealth prosecutor Deborah Mayall said Guilk's crime was uncovered when Centrelink cross-checked earnings declarations he had supplied to them with records of his wages held by the Australian Tax Office.

The figures did not match and when police interviewed him he immediately admitted his crime, saying he used the cash to fund drinking and gambling.

"Unlike other cases of welfare fraud, he did not use the money for a genuine need such as supporting his family," Ms Mayall said.

Guilk's defence lawyer said his client began claiming a benefit legitimately when he was jobless but failed to notify Centrelink when he obtained work as a labourer.

"The money just kept coming in (from Centrelink) ... it was just too easy to go down to the hotel and spend it on alcohol and gambling on the horses," he said.

Judge Leanne Clare SC said Guilk had fleeced "a lot of money from the public purse" and thrown it away on his chosen lifestyle.

She acknowledged Guilk had started re-paying the money but officially ordered him to repay the $43,697.36 still owing.

She said Centrelink fraud threatened the welfare system which was in place to help "those who really need it."

Judge Clare sentenced Guilk to two years' jail to be suspended after eight months.

Upon his release he will enter a good behaviour bond of three years.