Providers backing unions in landmark court case to close NDIS wage theft and fraud

A group of unions representing low-paid disability workers are filing a landmark case in the Fair Work Commission to close a loophole they believe is responsible for rampant wage theft and fraud in the NDIS.

A group of unions representing low-paid disability workers are filing a landmark case in the Fair Work Commission to close a loophole they believe is responsible for rampant wage theft and fraud in the NDIS.

The Sunday Telegraph can exclusively reveal that the case will be filed on Monday and that, in a rare display of unity, Australia’s largest NDIS providers, unions, disability workers and NDIS participants have come together to back the case to drive up standards and force dodgy operators out of the market.

The Australian Services Union, Health Services Union and United Workers Union will make an application to vary the Social, Community, Home Care and Disability Services Industry Award.

The unions are asking the Fair Work Commission to vary the SCHDS Award to ensure that all NDIS workers are covered by the Schedule B – Social and Community Services Employees classifications and the SACS Equal Remuneration Order (ERO).

They are also asking the federal government to tighten the NDIA funding guidelines to require providers to attest that they have complied with the SACS ERO rates of pay before receiving payments.

A home care loophole allows employers to pay employees as little as $24 per hour while claiming up to $33 per hour from the NDIS and pocketing the difference. File picture: iStock

Deloitte Access Economics’ benchmarking survey found that 10 per cent of providers paid less than the minimum award rate for disability support workers in 2021.

Angus McFarland, ASU NSW/ACT secretary and national union spokesperson for the campaign, said the home care loophole allowed the employer to pay their employees as little as $24 per hour while claiming the full NDIS price — up to $33 per hour — with the employer pocketing the difference.

And the problem is spreading quickly.

“We can no longer go from employer to employer to close the issue,” Mr McFarland said.

“This is an attack on the government’s efforts to grow the NDIS workforce and stop the unsustainable churn.

“Stealing wages from dedicated workers who support some of the most vulnerable people in our society is a despicable act and must be stamped out immediately,” Mr McFarland said.

“The rampant wage theft in the NDIS is not only ripping off workers, but also participants, taxpayers and the majority of providers who do the right thing. Enough is enough.”

Martin Laverty, CEO of Aruma Disability Services and spokesperson for the 25 largest NDIS providers in Australia, backs the union push to close the loophole.

“A properly paid, trained and supported workforce is essential to build capacity and trust right across the NDIS,” he said.

“We want to work to together with unions, government and NDIS participants themselves to lift standards across the NDIS because people with a disability deserve nothing less.”

It is understood that NDIS Minister Bill Shorten has been working with disability support workers, unions, employers and NDIS participants as part of his plan to shut the door on wage theft in the sector.

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