Jacking up prices on NDIS goods and services could become a criminal offence

NDIS price gougers will face jail time for rorting the taxpayer-funded scheme as unscrupulous suppliers reap in big bucks by marking up products by up to 800 per cent.

Jacking up the price of goods and services for people with disabilities could become a criminal offence under sweeping changes being considered by the federal Government.

The Saturday Telegraph can reveal senior ministers are committed to finding ways to stop “unscrupulous” providers charging as much as eight times the market price for goods and services, just because the purchases are being funded by the NDIS.

Options on the table include new criminal offences and new measures to outlaw dual pricing for disability supports – making it illegal to charge a customer a different price than other customers just because they’re on the NDIS.

The Government is also looking at ways to help NDIS participants leverage their collective power as consumers by developing bulk purchasing arrangements for NDIS participants.

In some severe price differentiation discovered by NDIS investigators, the same wheelchair can vary in price under NDIS from $1728 to $395.

Huge prices being charged by some NDIS suppliers. These are some recent examples.

A padded shower stool can cost $2056 compared to $149.95, while a pack of pull-up disposable pants can vary from $283 to $39.95.

NDIS Minister Bill Shorten described the behaviour as “reprehensible” and vowed he was coming after anyone trying to profit from a scheme meant to help people with disabilities.

“It is nothing more than profiteering, price gouging and it’s shameful,” Mr Shorten told The Saturday Telegraph.

Mr Shorten and Assistant Minister for Competition, Charities and Treasury Andrew Leigh have asked the National Disability Insurance Agency and the Australian Competition and Consumer Commission to look at ways to combat price gouging.

Bill Shorten says he was coming for those looking to make a huge profit out of the NDIS. Picture: NCA NewsWire / Kelly Barnes

“There is almost this attitude that because it’s government money the service provider arrogantly assumes the person wit7h the NDIS package can get the money for the overpriced goods and services,” he said.

“They lie to themselves that they are just ripping off the government, which in itself is still overcharging the taxpayer, but they are actually ripping off people with disabilities,” Mr Shorten said. “I am looking at ways to make that illegal and I want it done yesterday. I can’t give you a date but I will not rest until it’s done, we have smart, committed people across the federal Government working on it.”

Mr Shorten said the landmark review of the NDIS will be completed this month, setting the stage for the biggest shake-up in the history of the disability insurance scheme.

“We have focused on a range of people doing the worst possible behaviour and I want to take some of the sugar out of the banquet, stop these people taking their third helpings,” he said.

“If I could laminate the regulations onto one page so everyone is very clear on how the people on the NDIS should be treated, that’s my goal.”

Mr Leigh said The Albanese Government is committed to making our economy more competitive and ensuring that consumers are protected.

“NDIS recipients deserve to be treated fairly,” he said.

“Our competition and consumer laws are there to protect the interests of all Australians from businesses engaging in misleading and deceptive conduct.

“I would encourage people to report these matters to the ACCC.”

THEY DON’T SEE MY SON, THEY SEE DOLLAR SIGNS

Angeline Lazar fears for the NDIS because of the rip-offs, waste and inconsistencies.

She received a total of $52,630 this year for her eight-year-old son Aryeh, who has autism and ADHD.

“Those funds were sufficient when NDIS was introduced. However, now, most service providers are charging capped price or higher, so that limits support,” Mrs Lazar said.

Aryeh sees a pediatrician once every six weeks, has behavioural therapy twice a week, occupational therapy, speech therapy and swimming once a week.

“When NDIS first came about, therapies were priced much lower and they were capped relatively high, so providers back then would ask if we were on NDIS and charge the highest price if you said yes,” she said.

Angeline Lazar with her son Aryeh Lazar says many people are makingmoney out of the NDIS Picture: Sam Ruttyn

“Speech therapy for example, was $70 to $100 in the beginning but NDIS caps it at $193.99, so you’ll find most providers will take that these days.

“A lot of the things they do make no sense.”

For instance, CBD Oil is the only medication that helps calm his anxiety and assists him to self-regulate, the $375 bottle that lasts 20 days is not covered by NDIS. Mrs Lazar said her son is no longer funded for swimming lessons, because he is school age.

“Depending on your local area co-ordinator and NDIS plan review officer, people achieve different outcomes,” she said.

“In Covid he had a difficult time, he was extremely distressed, his world had turned upside down.

“We tried to ask for a therapy swing, they cost $3000 to $4000 but they said it fell under play equipment and it was rejected.

“If they have their regulations that’s fine but I am aware of a little three-year-old boy who has high-functioning autism. His parents had requested a tricycle and were given $5000.

“The problem is we have people working in the agencies who don’t understand the disabilities they are supposed to be assisting with. They should be working for an insurance company, not for disabilities.

“What we actually need to have happen is the government should bring all the caps down and control what people are charged, whether they are self-managed or agency managed irrespectively.

“If they told me I could tax deduct my son’s costs I wouldn’t go for NDIS. I would be one less parent to worry about. The NDIS in its current form will not be sustainable. All parents and providers share that concern. It is a great initiative and very important. But it needs attention.”

Got a news tip? Email [e-mail]

Originally published as Jacking up prices on NDIS goods and services could become a criminal offence