Federal Government Tables Major NDIS Reform Bill Targeting Provider Misconduct
The federal government has introduced comprehensive legislation aimed at addressing fraud, misconduct and exploitation within the National Disability Insurance Scheme, marking one of the most significant regulatory overhauls since the program’s establishment.
The National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025, tabled in Parliament today, proposes substantial expansions to the enforcement powers of the NDIS Quality and Safeguards Commission and establishes a framework of strengthened penalties for provider violations.
Key Legislative Provisions
The bill introduces a substantially revised penalty structure for serious contraventions by NDIS providers. Offences resulting in death or significant harm would carry maximum financial penalties exceeding $16 million—a more than fortyfold increase from the current $400,000 cap. The legislation also establishes criminal sanctions, including potential imprisonment, for breaches of registration requirements and non-compliance with banning orders.
The proposed amendments include several additional regulatory mechanisms:
- Expanded compliance and enforcement authority for the NDIS Quality and Safeguards Commission, including enhanced monitoring capabilities
- Extension of banning order provisions to encompass auditors and consultants associated with non-compliant practices
- Introduction of anti-promotion orders designed to prevent marketing of products or services that compromise scheme integrity
- A 90-day cooling-off period for participant exit requests from the NDIS, establishing a standardized notification process with the National Disability Insurance Agency
- Mandatory electronic submission of claims to reduce fraudulent activity
The reforms target what the government describes as systemic vulnerabilities that have enabled exploitation of both scheme resources and vulnerable participants.
Minister Defends Reform Necessity
NDIS Minister Jenny McAllister framed the legislation as essential to preserving the scheme’s financial sustainability and participant safety.
“Every single dollar spent on the NDIS should go to providing the highest quality care and safe support and services for people with disability,” Minister McAllister stated. “Through our investments, we have uncovered rorts committed by shonks, bad actors and criminals who have exploited and neglected vulnerable Australians.”
McAllister emphasized the connection between financial misconduct and participant harm, noting that fraud investigations frequently reveal concurrent instances of abuse and neglect.
The minister characterized the reforms as overdue measures that address known vulnerabilities while acknowledging that continued oversight will be necessary to ensure scheme effectiveness.
Parliamentary Consideration
The bill now proceeds to parliamentary debate, where it will face scrutiny from both coalition and crossbench members. The government is seeking bipartisan support for passage of the legislation during the current sitting period.
If enacted, the reforms would represent the most substantial enhancement of NDIS regulatory powers since the scheme’s transition to full implementation in 2020.
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