Labor-led committee calls for tougher NDIS fraud rules
Dangerous disability providers could be named and shamed, penalties for bad behavior could be increased, and the agencies that oversee the NDIS could be given greater powers to prevent fraud on the scheme.
As the federal government plans to remove hundreds of thousands of participants from the National Disability Insurance Scheme, a parliamentary inquiry has warned that tougher measures are needed to limit the amount of taxpayers’ money stolen by fraudsters.
The Labor-led committee warned that fraud was becoming an increasingly significant problem in the $56 billion plan and threatened to undermine public confidence.
The government plans to increase fines for some NDIS-related offenses, but the committee warned stronger deterrent measures may be needed to prevent the exploitation, neglect and abuse of vulnerable Australians.
The committee recommends greater information sharing between agencies responsible for ensuring integrity in the NDIS.
“Public disclosure of findings of fraud against individuals and organizations in limited circumstances and where appropriate will also act as a deterrent against fraudulent behavior,” the investigation’s final report states.
Although officials told the investigation it was impossible to determine exactly how much money the system lost each year to fraud, the “integrity leak,” which included everything from administrative errors to deliberate corruption, was put at about eight percent, or roughly $3.7 billion.
“This behavior needs to be removed from the scheme and the government must use all mechanisms at its disposal to send a strong message to participants that serious harm will not be tolerated,” the report said. The statement was included.
Responding to the report, NDIS Minister Jenny McAllister said work was still needed to clean up the disability sector and the government would seriously consider the committee’s recommendations.
The government has said more than $1.35 billion has already been spent to prevent fraud in the program.
Coalition senators on the committee said the report’s recommendations did not go far enough to address fraud in the plan.
Liberal senators Maria Kovacic, Kerrynne Liddle and lower house MP Henry Pike said: “The report understates both the extent and nature of the integrity problem at the NDIS.” he wrote.
“The recommendations outlined do not deliver on the ‘stronger market controls’ and ‘provider registration’ described as necessary in the report’s foreword.”
The Greens acknowledged NDIS fraud was a problem but warned participants should not be held responsible for it.
“We need a fraud response that is evidence-based, appropriately resourced and focused on those committing fraud, not one that creates fear and unnecessary barriers to disabled people accessing the supports they need,” Greens NDIS spokesman Jordon Steele-John said.
The government had hoped to pass the NDIS changes before the beginning of July, but struck a deal with the Greens to pass the tax bills, delaying the measures until at least August.
