Insurer hits back after tradie’s bold claims of NDIS participants’ rorts in SA

A former handyman has made bold claims over NDIS recipients fleecing the system, believing those most in need could be missing out.

An Adelaide-based handyman has made bold allegations of instances of NDIS rorts in SA – but the disability services provider says it has strong measures in place to prevent fraudulent claims.

James*, who worked as an NDIS provider between late 2019 and December 2020, said he believed those most in need could be missing out as others played the system.

Latest figures show SA has 55,499 active NDIS participants with approved plans, plus another 1358 children accessing early connections. As of June 30, there were 646,449 active NDIS participants nationally.

Under the insurance scheme, eligible persons with a disability can access a variety of supports to help them gain greater independence – including help with household tasks and modifications.

A former fraud investigator has claimed he saw a number of examples of recipients taking advantage of the NDIS system while working as a provider. Picture: AAP

After years in the corporate world, he turned to NDIS work – and quickly became disillusioned with the system.

“Given my background, I knew there were always bad people who would look to take advantage of any scheme,” he said.

“But this just reminded me how crappy people can be.”

James claimed that one client, whose $100,000 plan covered her for legal blindness, crossed the room to wipe a spot of paint off her fridge.

“She walked over there and I could tell she wasn’t that blind … how else could she have seen the paint,” he said.

He said, during a full day’s work with another client, he watched as their carer – who was hired to take them to medical visits – “sat around drinking coffee with them all day”.

“He just did nothing, they just sat around talking,” he said.

Another client, he claimed, requested that he “fake a few extra hours” so they could use the extra money they received to buy an item from Bunnings.

The tradesman said he had been left frustrated by these alleged incidents and believed additional funding could be missing the pockets of those most in need.

“There was one woman I’ll never forget whose daughter was incredibly disabled,” he said.

“She had to carry her everywhere and she was essentially her daughter’s full-time carer.

“It just got to me that there were people genuinely in so much need, when others seem to be taking advantage of the system.

“I just don’t think enough of the right people are getting the money.”

Under the NDIS code of conduct, providers – including tradespeople, gardeners, and cleaners — have obligations to report any concerns over matters that might have an impact on the quality and safety of supports provided to people with disability.

A National Disability Insurance Agency (NDIA) spokesperson said the organisation had a zero tolerance approach for fraud and urged anyone who believed someone was doing the wrong thing to report it to the NDIS Fraud Reporting and Scams Helpline.

“The NDIA is making the NDIS stronger, to stop exploitation of the Scheme and to make sure NDIS funding helps participants to achieve their goals,” they said.

NDIS Minister Bill Shorten has previously lashed those taking advantage of the system, but said they were a small minority. Picture: Pema Tamang Pakhrin

Over the past 12 months, the multi-agency Fraud Fusion Taskforce has investigated more than 100 cases of alleged system rorts.

Earlier this year, the federal government announced a further $83.9 million investment into the Crack Down on Fraud program.

The funding promises to boost technology and systems to clamp down on those doing the wrong thing, including greater interaction with law enforcement agencies.

In the March 2024 quarter, the NDIA received 5721 tip-offs of alleged fraud and prosecuted 20 cases with an estimated value of $33.5 million.

In February 2024, an offender was sentenced to four years plus a further two years to be served concurrently for perpetrating fraud offences against the NDIS, totalling over $430,000.

In September last year, it was revealed two Adelaide men had allegedly defrauded more than $465,000 in false NDIS claims for services that were not delivered.

At the time, National Disability Insurance Scheme Minister Bill Shorten said he was left fuming at the allegations and emphasised that the majority of NDIS providers did the right thing.

“Attempting to gain money for one’s own personal benefit, money that is intended for Australians living with disability is despicable,” Mr Shorten said.

“(That) is what makes me, the rest of the disability sector and the Australian public so angry when one hears about those who seek to abuse the system.”