NDIS fines for dodgy or dangerous operators could jump to $15 million

Criminal operators in the National Disability Insurance Scheme will face massively increased penalties under new laws proposed by the Federal Government.

The laws are aimed at significantly strengthening compliance with the NDIS and will kick in following consultation on the exposure draft, if Labor gets its way.

NDIS Minister Bill Shorten has detailed the second part of the Getting it Back on Track Bill, which he says will boost protections for the scheme’s participants and workers while hugely increasing penalties for dodgy operators.

New criminal offences will help ensure penalties represent a “credible deterrent against unscrupulous behaviour”, which in turn will prevent harm to people with disability and improve the quality of support and services.

Penalties for providers will increase from a maximum of $400,000 to in excess of $15 million when a participant is hurt or injured under the provider’s care.

Mr Shorten said this will bring the maximum penalty for harming an NDIS participant into line with the maximum penalty for harming a worker.

Currently, under WHS legislation, the value of a worker’s ‘life’ is valued at 38 times the value of an NDIS participant’s, he said.

The Minister said the proposed new law would radically strengthen the deterrence and compliance powers of the NDIS Quality and Safeguards Commission to take action to improve support and safety for participants.

For the first time in the commission’s history, the proposed legislation will also give it the power to refer providers for criminal prosecution where there is a serious failure to comply with registration conditions.

“These changes are well overdue to ensure the watchdog has the powers it needs to keep dodgy providers out of the NDIS for good,” Mr Shorten said.

“The independent NDIS Review and the Disability Royal Commission recommended strengthening the NDIS Commission’s powers through more active monitoring, compliance and enforcement.

“The changes will increase the transparency and accountability of providers and expand banning powers, which currently only relate to providers, so they can be applied to bad actors who are operating in all areas of the NDIS.”

The proposed legislation, expected to be tabled in parliament following consultation and the release of an exposure draft, includes measures to:

• Impose stricter regulatory requirements and stronger penalties and criminal offences for those doing the wrong thing
• Strengthen information gathering powers to improve monitoring and compliance of NDIS providers and others, and
• Expand the scope and application of banning orders to also include people operating in other critical areas of the NDIS, such as auditing and consulting activities.

Mr Shorten said the proposed legislation implements recommendations from the Independent NDIS Review to ensure the watchdog has the powers to proactively and effectively regulate the NDIS.

It builds on investments in the watchdog’s resources and registration reforms already underway.

Consultation on the proposed changes in NDIS Bill No.2 will begin immediately and ramp up in scale this month.

It will include formal submissions and questionnaires, ministerial roundtables, stakeholder workshops and webinars, as well as targeted engagement with the Disability Reform Ministerial Council, participants, state and territory disability officials, disability representative organisations, advocates and provider peak bodies.

The bill’s amendments are part of ongoing reforms to strengthen safeguards and elevate the human rights of people with disability.

The Minister said the reforms contribute to the sustainability of the scheme and will stop rorting by dishonest players.

“The changes are a response to emerging and long-standing quality safety and integrity issues within the NDIS and will mean NDIS participants receive higher standards of support and services over time,” Mr Shorten said.

“It will deliver strong measures to deter aggressive commercial practices by providers that exploit NDIS participants and erode scheme sustainability.

“Through ongoing engagement, consultation and communication, we will work closely with state and territory governments and the disability sector to ensure these reforms deliver better quality services and safeguard NDIS participants and their families.”