National Disability Insurance Scheme (NDIS) Minister Bill Shorten has announced that two providers from South Australia (SA) associated with the scheme have been banned from the NDIS following the discovery they were rorting it for hundreds of thousands of dollars.
Allegedly the pair, who both reside in Adelaide, made false claims to the NDIS from plans of participants who had not received the alleged support. According to the Department for Social Services, the pair allegedly made claims worth more than $465,000 (US$297,000).
“Attempting to gain money for one’s own personal benefit, money that is intended for Australians living with disability, is despicable,” Minister Shorten said.
“I’ve said before that the huge majority of NDIS providers do the right thing, which is what makes me, the rest of the disability sector, and the Australian public so angry when one hears about those who seek to abuse the system.”
According to the minister, one of the men was arrested and later charged with 19 fraud-related offences following a Fraud Fusion Taskforce operation, which focused on an Adelaide-based disability provider on Aug. 28. The second man is expected to be summon+ed to Adelaide Magistrates Court to face similar fraud-related offences.
The investigation was led by the National Disability Insurance Agency (NDIA) and received support from the South Australian Police.
The arrests follow the sentencing of a North Queensland man in August also for fraud offences against the NDIS. The man was given a two-year prison term after pleading guilty to Dishonestly Obtaining a Gain.
Mr. Shorten noted that according to recent NDIA data, there has been an increase in the amount of fraud-related referrals the agency is receiving, with 5,540 tip-offs in the June to September quarter. This is more than double the referrals received for the same period last year when the Agency received 2,519 tips.
Agency Report Reveals Insights into Disability Providers
The arrests come as the NDIS Quality and Safeguards Commission has released a report (pdf) into disability support providers and workers via websites, apps and online platforms.In the period between July 1, 2022, and Dec. 31, 2022, over 13,000 participants engaged in services and support through an online platform provider, according to the NDIA report.
The report found that while NDIS participants found providers who offered support online were easily accessible, they did describe “negative and, at times, unsafe experiences engaging with online disability service providers.”
“Safeguarding practices applied by Platform Providers were found to be varied, and often, insufficient,” the report said.
“Participants hold reasonable expectations that Platform Providers will be proactive when it comes to safety and take quick and supportive action in response to a concern being raised.
The report also found that participants felt commodified by providers, with individuals noting their concerns over their personal information being inappropriately handled.
“Participants said they would welcome complementary systems and safeguarding structures being applied behind the scenes and across the NDIS market,” the report said.
“Participants were in broad agreement that all providers of services in the NDIS market should understand the space they work in and know what person-centred support means in practice.”
“But participants have also described negative, and at times unsafe experiences, confirming the need to ensure fit-for-purpose guardrails to better protect participants and workers,” he said.
“While platform providers ensure choice and control for participants, they should also ensure quality and safety of supports and appropriate compensation for their workforce.”
