NDIS taskforce at odds with Minister Bill Shorten over registration

The taskforce established to fix the NDIS has proposed excluding hairdressers, gardeners, retailers and art schools from being registered in the scheme.

Exclusive: The taskforce appointed to rescue the National Disability Insurance Scheme has proposed a range of businesses be excluded from needing to register as a provider, leading to warnings that widespread fraud will continue.

The NDIS Provider and Worker Registration Taskforce, which is currently conducting public consultations, believes there should be exemptions for businesses like gardeners, hairdressers, retailers, pet stores and art schools, allowing them to be paid with NDIS funds for a service, without needing to register under the scheme.

The preliminary recommendation from the taskforce is at odds with public statements made by NDIS Minister Bill Shorten, who has said unregistered providers “operate with … no visibility of what they provide or even if they deliver the services they charge for.”

NDIS Minister Bill Shorten has conceded unregistered providers “operate with … no visibility”. Picture: NCA NewsWire

There are more than 150,000 businesses working in the NDIS which are not registered inside the scheme, meaning they are currently operating without regular audits and worker screenings.

A major NDIS review in December recommended any business earning money in the NDIS should be subjected to some form of registration or enrolment “to prevent harm and better ensure the delivery of safe and quality supports.”

However, during a public forum on June 3, the chair of Mr Shorten’s taskforce Natalie Wade said “we have heard suggestions from people on the importance of excluding retail and goods and services from registration.”

NDIS Provider and Worker Registration chair Natalie Wade has proposed gardeners, retailers and hairdressers be exempt from registration. Picture: Matt Turner

“Examples people have given us are when they use cleaners or lawn mowing services, buy ramps from Bunnings, or buy dog food,” Ms Wade said.

“While they use NDIS funds to make these purchases, they are services that anyone in the community might access.”

“The taskforce is thinking that the current definition of a provider is too broad to be used in a registration system.”

“Our idea is to narrow the definition of ‘provider’ and focus just on organisations who offer disability specific service support.”

When asked whether hairdressers would need to be registered to claim money off the NDIS, Ms Wade said “our idea would suggest they would not need to be registered.”

In the same public forum on June 3, taskforce member Vicki O’Halloran stated that under their proposal – one of the biggest retailers in Australia, Kmart – would also not need to be registered.

Vicki O'Halloran AO (right), another NDIS Taskforce member, suggested that art schools and retailers would also be exempt from registration. Picture: Pema Tamang Pakhrin

A member of the disability sector speaking on the condition of anonymity has told The Daily Telegraph “what is being proposed by the taskforce contradicts the findings of the NDIS review.”

“The NDIS will not survive if they don’t completely overhaul the terrible registration scheme. The rorting and fraud will continue. It’s unsustainable and unsafe right now and what’s being proposed will even risk making things worse,” they said.

16,000 providers are registered in the NDIS – representing less than 10% of the businesses making money off the ballooning scheme.

Opposition NDIS spokesperson Michael Sukkar said “how can any disability provider effectively service their clients with these mixed messages from the Minister, the NDIA and the Taskforce?”

A spokesperson for Minister Shorten said he would “consider the taskforce’s advice when the final report is provided” in a few weeks.

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Originally published as NDIS taskforce at odds with Minister Bill Shorten over registration