NDIS providers – penalties dramatically increase

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The Hon. Bill Shorten MP, Minister for the National Disability Insurance Scheme and Government Services, has announced the second part of the NDIS legislation, known as the “Getting it Back on Track Bill.” This new law aims to significantly enhance protections for NDIS participants and workers, while also improving the quality and safety of supports provided.

What are the key changes?
The proposed legislation will radically strengthen the deterrence and compliance powers of the NDIS Quality and Safeguards Commission. This will enable the Commission to take decisive action to improve the quality and safety of NDIS supports.

Significant Penalty Increases

  • Penalties for providers will increase dramatically, from a maximum of $400,000 to over $15 million when a participant is harmed under their care.
  • This aligns the maximum penalty for harming an NDIS participant with that for harming a worker, addressing a significant disparity in current legislation.

New Powers for the Commission

  • For the first time, the Commission will have the authority to refer providers for criminal prosecution in cases of serious non-compliance with registration conditions.
  • New criminal offences will be introduced to ensure penalties serve as a credible deterrent against unscrupulous behaviour, thereby preventing harm to people with disabilities and improving support quality.

Consultation Process

Consultation on the proposed changes will begin immediately and intensify in November 2024. This will include:

  • Formal submissions and questionnaires
  • Ministerial roundtables
  • Stakeholder workshops and webinars
  • Targeted engagement with various disability sector stakeholders

Providers should be aware that these reforms will deliver strong measures to deter aggressive commercial practices that exploit NDIS participants and undermine scheme sustainability. Ongoing engagement and consultation will be crucial to ensure these reforms achieve their intended outcomes, safeguarding NDIS participants and their families.


Full Media Release
The media release from the Ministers for the Department of Social Services department can be found here.

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