New task force to claw back cash from benefit fraudsters

Benefit fraudsters who have fleeced more than $290m from the government will be targeted by a new task force.

A new task force will be set up to target fraudsters who have fleeced more than $290m from the National Disability Insurance Scheme.

The Albanese government will spend $126.3m to set up the group in an attempt to claw back the cash taken as a result of fraud and serious crime within the NDIS.

The funding was revealed in Labor’s federal budget on Tuesday.

It will be rolled out over the next four years to establish a cross-agency taskforce to address fraud and serious non-compliance in the scheme.

The so-called Fraud Fusion Taskforce will replace the existing NDIS taskforce and comprise federal social services agencies and law enforcement, regulatory and intelligence agencies.

Funding for the existing NDIS taskforce has been extended until June 30, 2024 to help it transition.

The measure is estimated to save the government $291.5m by recovering debt from NDIS providers.

NDIS Minister Bill Shorten had flagged the new taskforce would be set up after media reports revealed the scheme was rife with criminal activity which was taking advantage of some of Australia’s most vulnerable people.

Speaking on Tuesday before the budget was handed down, Mr Shorten said Labor was committed to fulfilling its promise of getting the NDIS “back on track”.

“Labor’s announcement of a cross-agency Fraud Fusion Taskforce will help defend the scheme from crooks and help deliver our pledge to crack down on NDIS fraudsters,” he said.

A new task force will target fraudsters who have fleeced more than $290 million from the government in NDIS benefits. Picture: NCA NewsWire / Joel Carrett

Mr Shorten has promised a number of other reforms including working with states and territories to reduce the amount of time NDIS participants spend in hospital when they don’t need to be there.

The Federal Budget allocates $437.4m over three years to support NDIS participants and their families.

This includes $385m in operational funding for the NDIA and $18.1m over two years to review the scheme’s design, operations and sustainability.

Labor has also set up a pilot program to trial new methods of dispute resolution for people who disagree with decisions made by the scheme’s administrators at the National Disability Insurance Agency.

Mr Shorten said the pilot would help people to “clear the Liberals’ legacy of thousands of appealed NDIS decisions at the Administrative Appeals Tribunal (AAT)”.

Tuesday’s budget included $21.2m over three years for NDIS Appeals providers to support people with disability and their families with the Administrative Appeals Tribunal (AAT) appeals process.

“With people with disability at the helm, the government is repairing the scheme by lifting the arbitrary cap on staff and ensuring the NDIA has the resources it needs to support participants,” Mr Shorten said.

Tuesday’s budget contained $12.4m to fund an expert review pathway to resolve disputes arising from NDIA decisions, reduce the number of appeals to the AAT, and provide better and earlier outcomes for NDIS participants.

An additional 380 permanent government staff members will be hired to help support people with disabilities and their relatives.

And $5.8m was pledged to help provide legal assistance to NDIS participants.

Originally published as New task force to claw back cash from benefit fraudsters