Labor boosts fines by 40 times, adds jail time for ‘shonky’ NDIS providers
“This bill provides new powers to hold these scoundrels and criminals to account,” he said.
“Where we see fraud, we often see violence, abuse and neglect. It’s not just about blocking bad actors in the system, it’s also about keeping NDIS participants safe.”
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Current rules allow fines of up to $400,000 for serious breaches of NDIS rules, which require providers to act reasonably to prevent violence, abuse and neglect. A new “aggravated violation” will be introduced for failures that cause serious injury or death, with a maximum fine of $16.5 million.
“Currently an NDIS provider faces a much larger fine for the death of a worker than for the death of a participant in their care,” the government said in a statement. “This legislation will bring that closer.”
Penal sanctions will also be imposed on providers operating without registering when they are required to register when they provide specialist accommodation, use restrictive practices or manage schemes. The maximum penalty will be two years in prison or $16.5 million. Failure to comply with the restraining order could lead to a five-year prison sentence.
False claims about how participants can spend their NDIS funds will also attract a $400,000 fine if the provider refuses to remove the ads.
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