‘Not a get rich quick scheme’: Bill targeting NDIS rorters passes Senate

The Senate has passed new laws that could mean dodgy National Disability Insurance Scheme providers are jailed for years and fined millions amid widespread reports of rorting.

The legislation, passed on Tuesday, targets serious misconduct in the NDIS, threatening up to five years jail time for people who violate a banning order and two years for anyone providing support without being properly registered.

The Bill must now pass the House of Representatives, where Labor holds a mammoth majority.

NDIS Minister Jenny McAllister said the NDIS “is meant to be a disability support scheme, not a get rich quick scheme”.

‘Get the fraudsters, predators and shonks out’

“If you are banned from the NDIS but then choose to contravene that banning order, then you do not belong in the disability sector, you belong in prison,” she said.

“If you think you can get rich quick and cut corners by operating without registration when it is needed then you are engaging in predatory and dangerous behaviour and you also belong in prison.

“And if you think you can get away with shonky marketing which tricks NDIS participants into misusing their funding, tricks investors into disability housing scams, or promotes fake deals that tell participants they can use their plans to fund holidays then we will fine you $400,000.

“These are common sense measures, but we know there’s still more work to do to get the fraudsters, predators and shonks out of the disability sector.”

Other key measures include new rules cracking down on misleading advertising, broader banning order categories, stronger whistleblower protections and tougher monitoring, compliance and enforcement powers.

“These new laws will support the NDIS Commission to take more effective action to prevent harm and improve quality across the sector,” NDIS Quality and Safeguards Commissioner Louise Glanville said.

“They strengthen our ability to identify and respond to risks, take timely enforcement action, and drive better practice across providers.

“These reforms reflect extensive consultation with people with disability, families, advocates and providers.”