Bill Shorten urged to step in to stop dodgy NDIS providers from allegedly underpaying workers

Unscrupulous NDIS providers have been accused of ripping off vulnerable workers, with the Commonwealth minister issuing a stern warning to businesses.

Dodgy disability support providers have been accused of underpaying and rorting workers who care for vulnerable patients, with the federal minister issuing a stern warning to businesses doing the wrong thing.

The Australian Services Union (ASU) sent an urgent letter to the National Disability Insurance Scheme (NDIS) Minister, Bill Shorten on Friday demanding urgent action after its investigations found more than 30 providers were committing wage theft against employees.

While the practices vary, this can include bosses claiming taxpayer funded NDIS services which are costed to ensure disability support workers will receive the minimum wage, and then paying workers below the minimum wage and keeping the shortfall.

The ACU have accused multiple disability suppor providers for underpaying workers

Other tactics include simply not paying workers overtime or their superannuation entitlements.

In the past week, the ASU identified a further two NSW-based providers committing wage theft, with the union reporting the businesses to the Fair Work Ombudsman, the NDIS Commission and the CEO of the National Disability Insurance Agency (NDIA), Rebecca Falkingham.

In the letter to Mr Shorten, seen by NCA NewsWire, ASU NSW & ACT Secretary Angus McFarland called for swift action to establish policies which protect workers, many of whom were on insecure, or casual contracts.

“Both the NDIA and the NDIS Commission have various regulatory powers to establish standards and rules that could require anyone doing business in the NDIS to pay their workers the correct Award rates and entitlements,” he wrote.

“It should not be up to disability support workers – most of whom are insecurely employed – to have to navigate complex and lengthy litigation to be paid what they deserve, and to be paid what the Government already provides funding for in NDIS packages.”

The ASU have written to NDIS Minister Bill Shorten calling for policy reform to protect workers who have been underpaid by NDIS providers. Picture: NCA NewsWire/ Martin Ollman

Mr Shorten said it was a priority to ensure the government was cracking down on “morally bankrupt” NDIS providers who were “ripping off workers, short changing NDIS participants and cheating the Australian taxpayer”.

Issuing a clear warning to dishonest businesses, he said: “If you are ripping off workers and defrauding the NDIS, it will end in tears - yours. Just pay carers what they are owed, it’s not that hard”.

There have been 25 offenders charged for defrauding the scheme, with $50m in non-compliant payments cancelled, in figures dating back to July 1, 2022.

There are also 84 current fraud cases under investigation.

He said his office would continue working with the Fair Work Commission, law enforcement, government agencies, plus workers and their agencies to “track down dodgy providers and drive them out of business”.

“I applaud the union movement for campaigning to stop wage theft anywhere,” he said.

A former employer of a southwest Sydney provider identified by the ASU, who asked not to be identified as he remains in the industry, said he was paid $4.50 an hour less than the award wage as a team leader, and didn’t receive evening or weekend loading rates.

“Unfortunately, a lot of us were new to the industry so we had no idea about the awards and they employed a certain type of person who didn’t ask questions,” he said.

“And when you do start asking question, you’re on the outs quick.”

Timesheet of a disability support worker from an NDIS provider accused by the ACU of underpaying employers. Picture: Supplied

His regular 80-hour work weeks, and work days that could balloon out to 24 hours also left him burnt out.

After complaining to the directors, his shifts were cut down just two to three a week, before he stopped getting work altogether, plunging the father-of-one into financial hardship.

“It was really bad. I had gotten a personal loan for something else but I got the money as soon as my hours were cut and I found myself living off that,” he said.

Mr McFarland said the “rampant” practice was “ripping off people with disability” and workers.

“Wage theft undermines efforts to attract and retain workers in an industry plagued by high staff turnover. Without a robust workforce, NDIS participants are left without the vital support they need,” he said.

“It’s criminal to underpay staff – it’s even worse during a cost of living crisis.”

He said it was now up to the government to prioritise policy reform, to ensure workers were receiving the correct wages and entitlements.

“Wage suppression must be prioritised as part of this process,” he said.

“Equal pay rates have been properly funded in the NDIS, so wage theft should be treated as a compliance issue.”