Leanne Velvet Foody was living at Stuart Town when she falsely claimed $59,656.95 in government benefits between June 30, 2015 and May 17, 2018.

The 50-year-old of Osman Street, Blayney, did not give a reason for why she claimed the disability benefits while continuing to work when she faced magistrate David Day in Orange Local Court.

"A lot of people in the community don't have that much from properly earned wages," Mr Day said.

"The victim of this offence is the Commonwealth revenue, that is to say everyone in Australia."

The representative for the Commonweath Director of Public Prosecutions David Bloomfield said there was an issue of general deterrence for other members of the public so he called for full-time jail to be imposed.

"One of the most aggravating factors of this matter is the offender was on disability support at this time and she went on to earn $304,643 without declaring much of that, if any of that, at all," Mr Bloomfield said.

"The defendant was warned for a similar over payment of $60,000 earlier."

He said on that occasion she was sent a warning letter from Centrelink in 2015.

Solicitor Gerry Stapleton said Foody no longer works as a truck driver and she is legally receiving disability support benefits for a "litany of medial problems".

"Her heavy vehicle licence was cancelled in 2018," Mr Stapleton said.

"In terms of her mobility she walks around with the aid of a walker."

Mr Day sentenced her to a seven-month full-time jail term, however, she could be released after three months has been served.

Mr Day also ordered her to repay the $59,656.95.

"It's not the largest I've seen but certainly not the smallest I've seen," he said.

However, in the afternoon after she was taken into custody in the courtroom, Mr Day released Foody on bail pending a severity appeal in the district court.