New estimates suggest nearly 5% of the National Disability Insurance Scheme (NDIS) is spent in error. John Dardo, the integrity chief of the National Disability Insurance Agency (NDIA — the agency that runs the scheme), has warned around A$2 billion of the scheme’s spending was not on genuine needs, leading to the misuse of the NDIS’s $42 billion budget, including by organised crime syndicates. Large-scale, publicly funded schemes, such as Medicare and childcare, have been targeted by criminals, with $1.
5–$3 billion lost to Medicare fraud annually. The NDIS is vital for the lives of around 650,000 people with disabilities, and the recent estimates expose errors in the NDIS design that must be addressed. Latest reports show criminals use different ways to target the NDIS.
The most concerning incidents show NDIS participants are being harassed by criminals to give up their NDIS budget or are encouraged to misuse their funds to buy luxury items. There have been reports of some criminals posing as support coordinators. They then change participants’ contact details and bank accounts to redirect funds.
This lets them take large amounts of money for fake services. Another method is adding extra charges to invoices, making participants pay more than the services are worth, or for services that were never provided. Some have also been creating fake businesses to divert NDIS funds.
Currently, the NDIS operates through a mix of registered and unregistered service providers. R.