Senate debates
Tuesday, 31 March 2026
Bills
National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025; Second Reading
12:03 pm
Anne Ruston (SA, Liberal Party, Shadow Minister for Health and Aged Care) Share this | Hansard source
I rise to speak on the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025. For Australians with significant and permanent disability, the NDIS is more than a program; it's a pathway to independence, dignity and opportunity. That's why the coalition's support for the NDIS remains unwavering, but it is also why we must be honest about the challenges the scheme now faces.
The NDIS is at a critical juncture. It was designed to support around 410,000 Australians. Today, it supports more than 760,000 Australians. That growth underscores the importance of ensuring the scheme is sustainable, because sustainability is not an abstract concept; it is what guarantees the NDIS will be there not just for those who rely on it now but for future generations. The government must bring the escalating cost of the NDIS under control before the scheme becomes unsustainable. While the need for reform is clear, the government's progress against its own targets remains uncertain.
The coalition supports the intent of this bill. We support stronger protections for NDIS participants. We support tougher civil and criminal penalties for providers who are doing the wrong thing, because any provider who exploits a person with disability or misuses taxpayer funds must face serious consequences. There is no excuse for that kind of behaviour, and there is no place for it in the NDIS.
We also support the introduction of antipromotion orders. Providers must not be advertising or selling services that are outside the purpose of the scheme. We support giving the NDIS Quality and Safeguards Commission stronger powers, including banning powers to act against providers delivering poor-quality or unsafe supports.
While we support the introduction of a 90-day cooling-off period, we have circulated an amendment to close an unintended loophole with this measure. It is a loophole that would allow a correspondence nominee to withdraw a participant from the scheme or cancel a withdrawal, even against the participant's wishes. A correspondence nominee is there to assist, not to make decisions against the wishes of the participant. If that line is blurred, it risks removing agency from the people the NDIS is meant to empower. The coalition's amendment makes it clear that these decisions must remain with the participant. We have worked with the government and we are pleased it has agreed to support our amendment. This is a sensible and practical change that will close the loophole, to protect participant choice.
In relation to the antipromotion orders, a report by the ACCC earlier this year found that providers are advertising services clearly not covered by the NDIS. These services include all-inclusive holidays, flights, cruises, dining out and even the cost of ingredients for meals. We are seeing participants being sold equipment that does not match what they were promised. With around 94 per cent of providers operating unregistered, there remains a massive regulatory blind spot. The bill fails to establish direct fraud controls for the majority of the market. Some bad actors within the system are exploiting vulnerable participants and the taxpayers who fund this support. They're getting away with it because weak checks and inconsistent oversight have opened the door. It is essential that the NDIS has greater controls to detect fraud early and to stop exploitation before it harms participants.
The Australian National Audit Office estimates that six to 10 per cent of payments could be non-compliant, incorrect or fraudulent. In 2025, $48.83 billion was spent on the NDIS. If 10 per cent of these claims are fraudulent, we are looking at a staggering loss of $4.8 billion every single year. These losses are driven by systematic misconduct, fraud, false claims or claims for services never delivered.
Law enforcement has also warned that organised crime is now targeting the scheme. In March this year, the Federal Police raided a Sydney home linked to a suspected $3.5 million NDIS fraud syndicate. In February, a Darwin NDIA employee was charged over an alleged $5 million fraud. In my home state of South Australia, a provider overclaimed and charged for services never provided. Another two men defrauded the system of over $465,000. This is systemic exploitation.
This bill is a step in the right direction, but tougher penalties alone will not fix the problem. If the system itself is weak, bad behaviour will continue. The coalition's goal is to deliver a stronger NDIS which delivers better outcomes for participants, providers and the taxpayers who fund it.
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