Integrity of the NDIS and Safeguarding Reforms

Integrity of the NDIS

Joint Standing Committee on the National Disability Insurance Scheme April 2026

About Queenslanders with Disability Network (QDN) …………………………………. 3

Introduction …………………………………………………………………………………………. 3

The Nature and Extent of Non-Compliance ……………………………………………….. 4

Impacts of Non-Compliance on Participants and Families ……………………………. 5

Effectiveness and Adequacy of Previous Policies ………………………………………… 5

Legislative or Reforms to Strengthen the Scheme ………………………………………. 6

Recommendations ………………………………………………………………………………… 7

Conclusion …………………………………………………………………………………………… 7

Bibliography ……………………………………………………………………………………. 9

About Queenslanders with Disability Network

(QDN)

Queenslanders with Disability Network (QDN) is an organisation of, for, and with people with disability. QDN operates a state-wide network of 3000+ members and supporters who provide information, feedback and views based on their lived experience, which inform the organisation’s systemic advocacy activities. QDN has worked with members around the NDIS for over 10 years since its introduction and had been actively involved in the design and formation prior. QDN’s work is focused on the rights and full social and economic participation of people with disability, along with areas of key importance identified by Queenslanders with disability – the NDIS and mainstream services that people with disability rely on every day, including health, housing, employment, and transport.

QDN members have actively engaged to provide feedback, input and their lived experience at the Commonwealth level including the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability (DRC), the National Disability Insurance Scheme (NDIS) Review and improving housing and support options for vulnerable people with disability. QDN supports systemic reform to the NDIS. While Queenslanders with disability acknowledge the positive impacts of the NDIS, they also acknowledge that there is a need to improve the implementation, performance, and outcomes for people with disability as end users. Fundamental is the authentic consultation and meaningful engagement of people with disability, their families, providers, and the broader sector. We believe people with disability should always be at the table when decisions are made that directly impact their lives.

Introduction

QDN welcomes the opportunity to provide feedback on the Integrity of the NDIS. An NDIS that works for people with disability and provides them with the support they need to enjoy their life is of paramount importance.

The questioning of integrity coincides with the Federal Governments recently passed legislation, the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Act 2026 signalling the Government’s work to strenthen and safeguard the scheme.

Apart from the goal of this legislation to strengthen and safeguard the scheme. The NDIS Quality and Safeguards Commissions authority will be expanded through the following ways;

 -  powers to detect, prevent and respond to breaches of obligations
 -   provide participants wishing to withdraw from the National Disability Insurance
  Scheme with additional safeguards and communication options

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enable the National Disability Insurance Agency to move to an entirely electronic claiming system for providers
- ensure that plan variations can include an increase or decrease of the total funding amounts

It is important that this inquiry is considered alongside the legislation that has been passed and the impacts of the four points in the terms of reference to enact the changes with the summarised aims highlighted.

It is critical for people with disability to have the correct settings for safeguards and monitoring and strengthened measures that deliver the right type of oversight to ensure that quality services and supports are being delivered, and action is taken where this is not the case.

With this in mind, the feedback provided by QDN will focus on how the Terms of Reference will interact with the newly passed legislation.

The Nature and Extent of Non-Compliance

While the NDIS Quality and Safeguards Commission and Fraud Fusion Taskforce continue to investigate the extent of non-compliance, people with disability are concerned about the impact the current system of non-compliance is having on them as participants of the scheme. QDN has heard from members their concerns about how investigations take place, not just in terms of investigating providers, but how plans are reviewed for participants.

QDN members have identified the following issues which impact the supports that members receive and highlight how broad actions taken by providers and what happens in practice can impact upon people with disability such as:

 -   WIthin the deregulated market, members in regional centres highlighted that they
  have had to pay more than they did in the city for the same services with providers
   charging higher rates for the same service types
 -   Price guide being the same for community services and complex care needs which
   leads to limited service providers for complex needs and an imbalance of the
  number of providers who provide community and social supports as a ‘provider
   preferred service type’ based upon the level of complexity and what is required
  compared to supporting a person with complex needs
 -   Trying to report issues is difficult and there is confusion over how to report and
 when to report an issue, as well as the follow up when something is reported

Rather than feeling confident to highlight issues of non-compliance, QDN members have expressed feeling a lack of trust in them as participants, which is not helped by a lack of communication when raising complaints as well as who is ultimately responsible for investigating compliance. One member in particular noted that they had been passed between the ACCC and the NDIS Quality and Safeguards Commission when trying to raise an issue.

As part of this inquiry, the starting point for the Quality and Safeguards Commission is to consider improving education of what they do and how they investigate providers and their subsequent interactions with participants.

Impacts of Non-Compliance on Participants and

Families

Non-compliance by providers can have a significant impact on participants and their families. If a provider is found in breach and can no longer provide services then it is often reliant on families and/or carers to find a new provider of those services.

For participants the impact of non-compliance can lead to being unsettled and a loss of a service or provider who was trusted. It can also mean reduced engagement with their community and a loss of social and community participation through no fault of their own. Members highlighted the following:

 -  Moving to a regional town in Queensland one member had to spend nights in her
   mobility device because there were not enough registered providers to deliver
    specific support services in her new town
 -    It was noted that support workers and carers often didn’t understand the
   differences of experience for people with disability which led to them questioning
 why some cohorts received funding
 -   Incorrect meals to meet the dietary needs of the person being prepared by support
   service and then when the individual person had to purchase services to get the
   correct meals, was accused of wasting money
 -   Providers not understanding the code of conduct without the appropriate
   monitoring and safeguards to ensure that services are being delivered

Providers who do the wrong thing and engage in misleading, manipulative practices that impact participants can lead to a loss of support due to the practices of the provider, but as highlighted in part one, the current investigative model fails to provide an adequate understanding of how investigations are conducted which then risks participants feeling like they are the ones being investigated for the practices of the provider.

Reducing the impacts of the investigation process, as well as from non-compliance by providers, needs to be considered as part of the operation of the Act and the greater role of the NDIS Quality and Safeguard Commission.

Effectiveness and Adequacy of Previous Policies

The Fraud Fusion Taskforce, introduced by the Federal Government in 2022 is a clear attempt to ensure the integrity of the NDIS is being maintained. The Taskforce which is led by the NDIA and Services Australia, is currently connected to 23 different agencies within

the Federal government to stop fraud in NDIS and government payment programs (NDIS, 2025).

There is no dispute about having a Taskforce to monitor behaviour and provider practice and ensure that participants of the NDIS are protected. However, people with disability have observed that policies around fraud have been poorly managed and they are not aware of how the Taskforce investigates fraud or whether it has any connection to the review of plans by participants. Particularly with a growing number of QDN members raising concerns about the use of AI.

QDN understands that through community outreach by the NDIA in Queensland that explanations have been given to members about the use of AI in terms of reviewing plans, but little has been discussed in terms of investigations, and whether AI is being used as an investigative tool. This needs to be better communicated and understood by people with disability and their families.

Other policies for consideration included:

 -  Communication about policies often comes from social media and other sources
  which leads to confusion and dilutes the message of what policies actually exist.
 -  Members highlighted that NDIS banning orders and enforcement actions that while
   the process could be good on paper it was flawed due to the following factors:
   o  Identification and transparency gaps
   o  Fragmented systems and delayed intervention
   o  Inconsistent application of worker screening
   o  Over-reliance on participant vigilance.
   o  Workforce capability and online conduct
   o  Limited participant education and accessible guidance
   o  Voluntary training in a largely unregistered market

These issues highlight that attempts to update policies relating to NDIS integrity have often faced issues of poor communication about what the policies do, and poor understanding of how the policies are supposed to be implemented.

Legislative or Reforms to Strengthen the Scheme

The recent Act introduced by the Government is the next step to strengthening the scheme. Increasing the penalty for providers who do the wrong thing is an important step as well as making it easier to leave the NDIS and increase and decrease amounts through plan variations.

QDN members also noted that the following reforms and legislative changes could also be considered:

 -  Change the rate of pay for different services, so it isn’t a flat rate from providers of
  complex services to community and social supports

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If companies have not made a claim in the previous six months they should be deregistered. This would reduce shell companies
- Improve identification in enforcement notices
- Strengthen requirements for unregistered providers across range of service categories.
- Identify opportunities for targeted communication strategy around the implementation of changes through networks and trusted supports and services in the community.
- Strengthen and deliver participant education and capacity building with focus on peer support.

Along with the new Act in place, reform needs to focus on the above points to help improve understanding of the processes that underpin the upkeep of integrity of the NDIS. If this doesn’t take place there will be more fear that the current system is inquisitorial in nature instead of being in place to investigate breaches of integrity.

Recommendations

Greater education on the role of the NDIS Quality and Safeguard Commission and how they conduct investigations.
Improved streamlining of investigations to reduce the risk of participants and providers being investigated for errors in their plans.
Understanding of how the Fraud Fusion Taskforce investigates and works with other agencies is required. Education of the processes used and the use of AI as part of investigations would help reduce the concerns many people have about the system in its current form.
Reform how the NDIA provides information to participants and providers to help break away from the confusion that currently exists for many stakeholders involved with the NDIS feel concerning the Act, the NDIS Quality and Safeguard Commission and the Fraud Fusion Taskforce.

Conclusion

The introduction of the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Act 2026 is designed to improve the integrity of the NDIS. However the Government and the Committee must consider ways to ensure that these changes don’t lead to an increase in fear for disability stakeholders. As noted, QDN members have already expressed concerns about the processes involved in investigations and how these impact on their plans.

These changes are designed to investigate providers who have done the wrong thing, but investigations need to take place when there is an accusation, not just as part of an audit process.

There is a lack of understanding behind the agencies responsible for the integrity of the NDIS, the NDIS Quality and Safeguards Commission and the Fraud Fusion Taskforce. In the current environment of rapid changes to the NDIS, consideration must be given by the government to increasing transparency about the operation of these agencies and how they conduct investigations and how to separate serious breaches of integrity from grammar or clerical errors. If this doesn’t happen these changes risk increasing anxiety amongst people with disability instead of alleviating it.

Bibliography

NDIS. (2025, May 16). Fraud Fusion Taskforce. Retrieved from NDIS: https://www.ndis.gov.au/about-us/improving-integrity-and-preventing-fraud/fraud- fusion-taskforce

NDIS. (2025, October 8). Latest News. Retrieved from NDIS : https://www.ndis.gov.au/news/10956-86-million-dodgy-ndis-claims-blocked

NDIS Quality and Safeguards Commission. (2026, March 25). Infringement notice list. Retrieved from NDIS Quality and Safeguards Commission: https://www.ndiscommission.gov.au/about-us/compliance-and- enforcement/compliance-actions/infringements