10 NDIS providers hit with biggest fines amid thousands of complaints

The number of complaints and reportable incidents about the NDIS were up 78 per cent, compared with the previous 12 months. See which providers got the biggest fines.

EXCLUSIVE: Three people with a disability are being rescued from immediate harm every day, while more than 300 complaints and incidents about the NDIS are being made to the watchdog.

The NDIS Quality and Safeguards Commission removed 1300 people with disability – that’s three a day – from situations where there were fears they could be at imminent risk of abuse, neglect, assault and homelessness, in the last financial year.

The number of complaints and reportable incidents – 111,345 in total – were up 78 per cent, compared with the previous 12 months, according to the watchdog’s annual report out on Tuesday.

It comes two days after NDIS Minister Bill Shorten proposed new legislation to allow the commission to tackle criminals and fraudsters who are ripping off the $44 billion a year scheme and revealing 200 providers had been permanently banned.

Natalie Wade, Associate Commissioner, NDIS Quality and Safeguards Commission.

The watchdog said the increase in complaints in the last financial year were due to the increase of people joining the scheme and better awareness of who to complain to, as well as a better understanding of people’s rights.

“We see this increase in complaints as a positive, as it means that people with disability, and their carers, families and friends, know that they can come to us to make a complaint,” Natalie Wade, new Associate Commissioner, said.

Michael Phelan, who was acting commissioner for six months, but has now been replaced by Louise Glanville, said in the report he hoped the number of complaints would stabilise over time.

“This means ensuring that NDIS participants can easily identify unacceptable behaviour and exercise their rights when their supports and services are unsafe or of poor quality,” Mr Phelan said.

Michael Phelan said he hoped the number of complaints would stabilise over time. Picture: Lyndon Mechielsen/The Australian

The most common complaints to the commission were about the way providers operated, worker conduct and capability, and allegations of neglect or abuse.

The watchdog issued $3.9 million in fines and penalties in the financial year.

The top three biggest fines from the watchdog in the last year were Queensland-based provider of disability accommodation Multicap Ltd ($145,680), The Benevolent Society ($141,120), which operates in NSW, Queensland and SA, and ProActiv People Solutions Pty Ltd ($134,280), with operations in Victoria, NSW and SA.

Multicap Group CEO, Joanne Jessop said the group was fined for eight minor infringements, which were administrative errors relating to the uploading of documents to the portal.

“Importantly, these infringements were not related to the safety or quality of services provided to our customers,” Ms Jessop said.

The Benevolent Society CEO Hatfield Dodds said it was fined for late submission of behavioural support plans, which did not impact anyone’s safety.

The watchdog, which was given $150 million of public funds to double its workforce to cope with demand, also issued more than $1m in fines to providers in relation to the use of restrictive practices.

A spokesman from Proactiv People said infringements were issued for alleged procedural issues in reports, which had no impact on participant safety or quality of care.

“We reviewed these allegations carefully, presenting evidence and ensuring full alignment with legislative standards,” the spokeman said. “This led to the withdrawal of several infringements and a substantial reduction in fines, resulting in a final amount significantly lower than the publicly listed penalties. Our commitment to participant safety and exceptional care is unwavering, and we remain focused on maintaining the highest standards every day.”

The commission admitted it had failed to meet its targets in this area, with the number of people with behavioural support plans subjected to unauthorised restrictive practices up from 9,747 in 2022 to 2023, to 11,347 in the last financial year.

There were two civil penalty proceedings including a $1.8m penalty issued by the Federal Court in respect of NDIS provider LiveBetter, following the tragic death of Kyah Lucas, a 28-year-old Aboriginal woman who died in February 2022 from complications associated with burns she sustained while she was being bathed.

Proceedings have also begun against Oak Tasmania which allegedly failed on more than 600 occasions to report within required time frames incidents including serious injury or neglect.

Originally published as 10 NDIS providers hit with biggest fines amid thousands of complaints