Organised Gangs, Health Professionals Defrauding the NDIS: Crime Agency

They engage in a spectrum of activities from ’sharp practices’ that operate on the margin of compliance through to direct exploitation.

The National Disability Insurance Scheme NDIS logo is seen at its head office in Canberra, Australia, on June 22, 2022. AAP Image/Mick Tsikas

A major Australian crime agency has raised concerns of wide-scale defrauding of the multi-billion-dollar National Disability Insurance Scheme (NDIS).

The claims were made by the Australian Criminal Intelligence Commission (ACIC), who investigate organised crime, in a submission to a parliamentary Joint Standing Committee investigating the integrity of the NDIS.

In its submission, traditional organised crime groups, professional fraud syndicates, and scheme‑hopping networks have established or infiltrated the NDIS.

They engage in a spectrum of activities from “sharp practices” that operate on the margin of compliance through to direct exploitation by serious organised crime (SOC).

“Sharp practices” refer to actions that—while either legal or close to being legal—are ethically questionable and often involve the use of deception to score an unfair advantage.

“These actors exploit the NDIS to generate income, launder illicit proceeds and conceal asset ownership, often using criminal business models observed across other Commonwealth payment and regulatory programs,” the submission states.

“This indicates that NDIS exploitation frequently forms part of broader, repeat offending rather than isolated misconduct.

“The money fraudulently obtained by SOC through exploitation of the NDIS is also routinely recycled into a range of other serious criminal activity.”

Health Professionals Involved as Well

The submission also flagged the issue of “professional facilitation,” whereby allied health professionals and other trusted intermediaries assist unsuitable providers to gain entry to the NDIS, pass audits, or inflate participant funding.

ACIC says this can take the form of health professionals preparing false or exaggerated documentation to support claims or obtain higher funding.

A “significant portion” of offenders had a history of fraud conviction or poor tax history.

“In some cases, participants may be drawn into collusive arrangements—knowingly or unknowingly—exposing them to financial, legal and personal harm,” the submission states.

ACIC blamed poor screening and oversight for allowing criminal activity to flourish.

Taskforce Tackling Crime

A National Disability Insurance Agency spokesperson told The Epoch Times that protecting participants and the integrity of the scheme was a high priority.

“The Fraud Fusion Taskforce, comprising 24 agencies, co-led by the NDIA and Services Australia and also includes ACIC and the Australian Federal Police, focuses on high-risk and serious criminal activity targeting government programs designed to help those most in need,” they said.

The NDIA is the government agency that manages the NDIS.

The Epoch Times understands that around 660 Fraud Fusion Taskforce investigations are currently underway, while in 2025, more than 77 warrants were served on suspected criminals—up from 30 warrants from 2018-2021.

Since the taskforce came into effect in 2022, more than 2,500 unscrupulous providers have been disrupted from claiming from the NDIS, while prosecutions have doubled.

Labor Will Not Look at Cutting Down the Program, Focus on Fraud

Amid the country’s soaring debt levels, the federal Labor government is expected to make changes to the $50 billion NDIS at the upcoming May budget.

On April 21, Treasurer Jim Chalmers held a meeting with state leaders to brief them on expected changes.

Prime Minister Anthony Albanese said in talks held with the states, they had agreed to fund up to eight percent of NDIS growth.

“So they have a stake in making sure that this system is sustainable,” he told the ABC’s 7.30 program.

Albanese said Labor did not plan to cut the NDIS, but would instead focus on fraudulent operators.

“I want to see an Australia where every Australian is proud of the NDIS,” he said.

Coalition Earmarks 3 Proposals

The federal opposition is pushing for a real-time payment system to help verify claims before taxpayer-funds are paid out.

The Coalition says that for years, the NDIS has operated on a “pay now, check later” model, which leaves the system easily open to fraud.

The second suggestion involves a “step-up” system, meaning different tiers of registration in line with the risk of the operator. At the moment, the opposition says registration is spread between managing high-risk vendors and little else.

The Coalition is also pushing for cutting red tape like avoiding repeat assessments of individuals who have no change to their disability or condition.

Liberal frontbencher Andrew Bragg has suggested Labor consider means-testing the NDIS.

“I think it’s crazy that we have programs that aren’t means-tested,” he told ABC News.

The Epoch Times contacted the Shadow Assistant Health Minister Henry Pike and Coalition NDIS spokesperson Melissa McIntosh for comment.

One Nation’s Stance

The conservative-leaning One Nation backs means-testing, and supports targeting fraudulent providers who charge “unsustainable” pay rates and offering “bogus therapies.”

“The NDIS has funded things that are anything but ‘reasonable and necessary’ including music lessons, corporate box tickets, first-class airline travel and even sex workers,” said party leader Pauline Hanson.

Hanson told the Senate that “immigration agents, some banned for misconduct, have been able to register as NDIS providers and allegedly defraud the scheme.”

One Nation warns some specialists are charging three times the market rate for services like nursing and psychology.

“It is creating a shortage of such specialists in these other sectors,” the party said.