Government Targets NDIS Fraud with Improved IT Systems

NDIS Fraud

The Australian government has decided to allocate $48.3 million in the next federal budget to bolster its anti-fraud measures around the National Disability Insurance Scheme (NDIS). The measures will include innovative IT systems that can detect and prevent fraud instances.

The NDIS and government services ministry also announced the decision to fund 200 more staff for manning the systems. Also included in the proposal is the plan to develop a business case for ICT systems. It will detect non-compliance payments and prevent such incidents. These moves aim to ensure that every dollar from the NDIS will reach deserving people and support them in dealing with their disabilities.

What Is the NDIS

The NDIS offers personalized funding based on a pay-per-service model to individuals with lasting and extensive disabilities. This funding will:

  • Provide assistance to NDIS participants in their day-to-day activities.
  • Improve their level of self-reliance.
  • Promote stronger community relationships.
  • Assist them in achieving their objectives.

The NDIA, or the National Disability Insurance Agency, manages the implementation of the NDIS.

The government is focused on the safety, sufficiency, appropriateness, and sustainability of the support provided to people living with a disability.

In April 2019, when the reports of abuse, neglect, violence, and exploitation of disabled people came out, the Australian government established a Royal Commission to investigate the matter. That report is due in September 2023.

In April 2023, the government felt it must systematically reform the entire disability support ecosystem. They identified six priority areas for these reforms. They are:

  • Refining the NDIA workforce.
  • Supporting longer-term planning.
  • Controlling spiraling expenses.
  • Upgrading the Supported Independent Living program.
  • Gaining control over the unethical practices of service providers.
  • Boosting community and mainstream supports for the disabled.

What is the NDIS Fraud Modus Operandi?

People commit NDIS fraud in many ways. Reports indicate instances where NDIS participants receive threats of violence, extortion, or coercion to get them to surrender their budget entitlement. Another scary and disturbing practice used by fraudsters is ghosting. This involves the creation of fake NDIS clients and the payment of invoices generated for services without proper verification.

Additionally, concerns about contractors overstating invoices result in participants being charged for services that exceed their actual value.

These examples showcase the diverse methods through which NDIS fraud occurs. That’s why the government is focused on implementing robust anti-fraud measures to ensure the scheme’s integrity remains protected and the funds are utilized for the purpose they are allocated – the benefit of individuals with disabilities.

By addressing these issues, authorities are creating a secure and transparent environment within the NDIS.

Steps Taken To Improve NDIS Effectiveness and Sustainability

The 2023-24 Budget includes a new initiative called “Enhancing the Efficiency and Longevity of the National Disability Insurance Scheme.” This budget allocated for $732.9 million over four years, starting from 2023-24. The primary goal is to improve the overall NDIS management, test innovative payment models, and mitigate fraudulent activities.

What Are The Weak Links of The Program?

There are apparently many soft spots in the NDIS system. The government negated nearly $45 million in National NDIS payments last year due to suspected fraudulent activity. However, the new data show that this amount may pale woefully compared to the actual extent of fraud within the scheme.

The Australian Criminal Intelligence Commission has alerted that as much as $6 billion per could be misused by organized crime syndicates annually. Criminals have no conscience in exploiting people with disabilities. These incidents also highlight the areas of vulnerability within the disability support scheme. Such instances have led to a loss of trust of many participants and hence require some concrete action to help regain their faith and confidence.

NDIS Budget Details

According to budget papers, the NDIS will likely experience a 14% annual cost increase over the next decade. The rise in the number of participants and the average support costs drives this growth. The combined federal, state, and territory funding will likely go up from $35 billion in 2022-23 to $52 billion in 2025-26.

To deal with the extreme financial strain caused by this rising expenditure, the government has begun a comprehensive review of the NDIS program. It will cover an assessment of its design, operations, and long-term sustainability. Some significant changes are to occur shortly.

The government has made abundantly clear that they are not going for some arbitrary cost-cutting measures. The government is concerned about fraud and the rising costs and wants to address the problem. The program’s importance cannot be discounted. However, there is a pressing need to put the existing NDIS structure through a detailed evaluation to ensure that the allocation of resources is done efficiently and that deserving persons get the support they need.


The NDIS offers personalized funding packages, allowing participants to choose and manage disability-related supports. The NDIA recently introduced the updated Participant Service Improvement Plan. It aims to enhance efforts in designing a scheme that helps meet the participants’ expectations. Additionally, the NDIA has implemented the Participant Service Charter and the recently enacted Participant Service Guarantee.