House debates
Wednesday, 1 April 2026
Bills
National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2026; Second Reading
11:53 am
Louise Miller-Frost (Boothby, Australian Labor Party) Share this | Hansard source
The National Disability Insurance Scheme is a vital part of Australia's social support system. It provides Australians with permanent disability with the supports they need in order to live a fulfilling life. The NDIS was something that had been campaigned about for years by people with disability, their carers, families and the sector. It was a Labor government who answered that call, giving people with disability the choice and control they had called for. The Albanese Labor government is committed to maintaining that promise. I regularly speak to constituents who rely on NDIS funding for themselves or a family member. It is a part of our Australian way of life—that we as a community provide support to each other according to need.
The NDIS was established by a Labor government in 2013. However, it was the coalition government that oversaw the initial period of the NDIS's implementation. Unfortunately, that led to 10 years of systemic and systematic failures. In 2022, when the Albanese Labor government was elected and inherited the coalition chaos, the NDIS had been growing by 22 per cent year on year. That is simply unsustainable. Since being elected to government, we have sought to make the NDIS better, more reliable and more accessible to its participants and to make it fit for purpose for the long term—effective, safe, ethical and sustainable.
The National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2026 is the result of much consultation with people with disability, peak bodies and other stakeholders, and it will go some way to rectifying those 10 years. Whether it's the exploitation of participants or the mishandling—or worse—of government funds, the NDIS requires new laws to be able to tackle these underlying challenges. The Australian National Audit Office is categorical on this point. The previous, coalition government failed in their duty to ensure the appropriate prevention mechanisms for fraud and noncompliance, and, where there is fraud and noncompliance in this area, we know there is often violence, abuse and neglect.
Participants are not benefiting to the full extent of their NDIS packages. The Albanese Labor government made it our immediate objective to protect those with a disability to ensure that the NDIS works for, not against, its participants. We invested more than $550 million in fraud and non-compliance prevention schemes, including the Fraud Fusion Taskforce, which has led to major criminal convictions. Today, more claims are being reviewed every day under this government than were reviewed in an entire year under the previous, coalition government—another example of absolute neglect.
With this bill, the Albanese Labor government continues our tradition of insisting that NDIS participants receive the care that they need and that they deserve, and the bill entrenches a stronger penalty framework that will include a new 'aggravated' category of contravention where failures have led to serious injury or even death. Under this category, individuals responsible can be fined up to $3.3 million and corporations up to $16.5 million. The stronger penalty framework will also mean higher criminal penalties for those operating unregistered where it's mandatory and failing to comply with a banning order or for providers that seek to operate under a different trading name or fabricate service agreements and invoices in order to avoid detection. Under these changes, this type of criminal behaviour will not be tolerated. It is not only illegal; it is dangerous and unsafe.
Currently, the highest fine for failing to register is up to $400,000. With these changes, failure to register can result in up to two years jail time and fines of up to $16½ million. Currently, those who attempt to skirt a banning order can face a criminal penalty of around $1.6 million. With these changes, those who attempt to skirt a banning order could see up to five years of jail time. Banning orders will also now be expanded to cover consultants and auditors to further protect participant safety and prevent future harm.
The Albanese Labor government recognises that, sadly, higher criminal penalties are required in order to deter criminal behaviour in the NDIS system. Under these new laws, criminal operations within the NDIS will not be let off lightly. The bill will also introduce new antipromotion orders to curb false advertisements that go against the basic principles and values of NDIS—false advertising in the way of suggesting that daily goods and services are NDIS funded when they are not, such as suggesting that holidays and entertainment can be claimed under the NDIS when it cannot or suggesting that certain supports can be claimed under the NDIS where the individual's plan might not warrant them. Under these changes, the NDIS commission will be given powers to intervene, and information-gathering powers will be strengthened so they can demand documents and information from providers within shorter timeframes where there is risk of injury, harm or death of a participant.
The bill also includes an amendment that will enshrine a participant's right to retract their decision to cancel their plan within a 90-day cooling-off period. The decision to opt out of the NDIS is a serious one and can be difficult to unwind down the track. The change to 90 days of cooling off means the participant has more time to give additional consideration and will avoid causing undue stress to the participant as a result of a decision they may later regret.
The bill also includes an amendment that will enshrine a participant's right to determine the manner in which claims are lodged, whether physically or electronically, streamlining the application process, and it includes an amendment that will enshrine a participant's right to know that their plan variation may lead to funding increases or decreases.
The NDIS integrity safeguarding bill is not about sidelining or demonising providers or workers. The overwhelming majority of providers do good work and go about their work with integrity. The bill is not about undercutting or restricting the ability of providers to do this good work. Providers are crucial to the NDIS's operations. This bill is about targeting the few who would seek a financial advantage where a fellow Australian is reaching out for a helping hand, targeting those who would brazenly take that hand all the while thinking how they may best gain unscrupulously from the relationship. The way of NDIS is about creating a fair, safe, sustainable system that serves the interests of its participants.
The bill does three things. It ensures that fraud and non-compliance are stamped out, and, to this end, ensures the NDIS develops a culture of compliance. It ensures that NDIS lives up to the values of its original charter, and, most importantly, it ensures that participants are protected when all that they and their families and carers are trying to do is navigate their care and live dignified and rewarding lives. I commend the bill to the House.
No comments