Mr Harder said the only way the stolen $68,000 could be repaid was if Leavasa was allowed to carry on working as a caregiver for the elderly in the upmarket suburb of Remuera.
He said his client was "deeply remorseful" and said if she was given home detention the family would lose their primary source of income and would be back living in the tin shed.
Judge Grant Fraser was reluctant to let the offender off lightly.
"Isn't that an open invitation for anyone in employment to rip off the system?" he said.
The judge was also unimpressed by Leavasa's explanation of the offending as "misunderstandings" but eventually stopped short of home detention to allow her to work and pay back some of the cash.
She was sentenced to six months of community detention, a year's supervision, 100 hours of community work and ordered to pay back $10,000.
At a rate of $40 a week, it would take Leavasa about five years to make good on the reparation.
"Ripping off the system is relatively easy and there's a reliance on honesty and trust in order to make it work appropriately," Judge Fraser said.