NDIS fraud: Hundreds ordered to repay millions in disability claims
NDIS fraudsters have been caught claiming everything from mortgage payments to 400 years' worth of medical supplies in a nationwide crackdown on scheme rorts.
A National Disability Insurance Scheme participant who splurged more than $100,000 of their government funds on a vehicle, a massage chair, solar panels, and even mortgage payments is now among hundreds of people being ordered to pay back money.
In another case, a registered NDIS plan manager – who was meant to help participants manage their funding and invoices – instead made false claims against his clients’ plans to the tune of $700,000.
And in yet a further incident, an unregistered provider claimed $200,000 worth of products, a supply that would have lasted 400 years.
The real-life examples reveal some of the ways people are abusing the $1 billion a week disability scheme, which is meant to support people with severe and permanent disabilities.
Last year the former NDIS Minister Bill Shorten released a list of items and services – including prostitutes, alcohol and illegal drugs – that could not be claimed on the NDIS.
This masthead recently revealed how almost 300 booze claims, worth at least $46,000, were paid via the NDIS in just 12 months.
The Albanese government has invested millions of dollars in fraud detection after estimates suggested up to five per cent of the budget could be for illegal, fake or mistaken claims.
However, the National Disability Insurance Agency (NDIA), running the scheme, had to apologise last month after a review revealed it had wrongly demanded money be repaid from more than 100 people with a disability.
“The NDIA considered all factors relevant to the issuing of debts, and where there were problems including poor process, lack of evidence and natural justice, legal deficiencies and poor communications, debts have been revoked,” it said in a statement.
“The agency has apologised for any distress caused.”
In a review of 475 participant debts, issued between 2017 and early 2024, 115 – or about a quarter – were revoked.
In most cases, no money was paid by the participant and the debt was extinguished and removed from client records.
But there were 26 cases – amounting to a total of $145,000 in paid debt and interest – that the agency had to pay back.
There are two more participants eligible for a refund and the NDIA is engaging with them or their families.
Some 387 provider debts are still being reviewed with refunds expected to be paid to less than 60 providers. The agency is currently working on contacting all affected providers.
The agency released a statement to say the claims were not created by an automated system, like the ‘robodebt’ scandal, where half a million inaccurate Centrelink debts were raised through a method of ‘income averaging’, which has since been ruled unlawful.
Instead, it said the errors were the result of poor processes and human error.
New laws introduced in 2024 give the agency the ability to take into account a person’s disability when considering waiving a debt.
The government is under pressure to reduce growth in the scheme.
Last month, Health and Disability Minister Mark Butler announced cost-cutting measures that see children with milder disabilities and autism diverted into a new community-based set of programs under the banner Thriving Kids, which will launch in July next year.
EXAMPLES OF BAD CLAIMS
● Participant ordered to repay $130,000 for three claims they had claimed inappropriately.
● Family member with unauthorised access ordered repay $75,000 for claims made against an NDIS plan while a participant was incarcerated. Evidence showed the participant could not have received the claimed supports. An investigation confirmed that a family member had falsely lodged and claimed payments to purchase lifestyle products.
● Participant ordered to repay $109,000 claimed for vehicle, massage chair, solar systems and mortgage repayments, including claims by family member ABNs. Actions are proceeding against the family members with the ABN that made the claims.
● Unregistered provider (also a participant) ordered to repay $350,000 in claims for services they didn’t provide. This provider was also a NDIS participant. As a provider, they also made claims against their own plan.
● Unregistered provider ordered to repay $30,000 for mental health, social work and counselling services which required specific qualifications. An investigation proved that the provider was delivering services by staff who were either not qualified or whose qualifications were fraudulently obtained.
● Unregistered provider ordered to repay $205,000 for consumable products, such as personal protective equipment, at quantities significantly above what was supplied to participants.
An investigation proved that the provider submitted claims for consumable products which would equate to a 400-year supply if the products were used in line with the manufacturers’ recommended use by date/replacement cycle.
● Registered provider (Plan Manager) ordered to repay $700,000 for claims against participant plans. An investigation established that some claimed funds were not being used for NDIS purposes or for participants supports.
● Registered provider ordered to repay $225,000 for claims from multiple participant plans.
We found that the provider made claims for maintenance of assistive technology products which were completely unrelated to the participants disability or care requirements.
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Originally published as NDIS fraud: Hundreds ordered to repay millions in disability claims
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