Legislation on NDIS reform proceeds to Senate amid fraud concerns

John Dardo delivers evidence before Senate estimates_credit_Parliament House.jpg

John Dardo delivers evidence before Senate estimates Source: Supplied / Parliament House

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Laws that will enable sweeping reforms to the National Disability Insurance Scheme have passed the lower house as the government looks to claw back $14 billion from the scheme over five years. It comes amid shocking revelations of fraud by disability providers and participants.


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TRANSCRIPT

As the NDIS budget blows out, some disability advocate groups have had theirs slashed.

It comes as the federal government is considering a number of key reforms: changes to the disability employment scheme, the implementation of an Australian Disability Strategy, and the development of a National Autism Plan.

Ross Joyce, the CEO of the Australian Federation of Disability Organisations, says the funding cuts - announced in the federal budget - couldn't come at a worse time.

“We've got the most amount of reform work that's happening in the disability community since the inception and the input from the National Disability Insurance Scheme. We've got major stuff happening. Now its not the time to be de-funding disability representative organisation voices. Now is the time the government needs it only more.”

The cuts for the organisation alone represent a 30 per cent reduction to what Mr Joyce says are inadequate funding levels.

That situation is replicated for the organisation's 36 member groups who reach more than 4 million Australians.

But, it’s fraud that's dominating headlines.

A budget estimates hearing has revealed it accounts for five per cent of NDIS spending, about $2 billion per year.

Born with a permanent disability, advocate and social worker Mary Henley Collopy says it is hard to understand why people would do this.

“It shouldn't be necessary; people shouldn't have been able to do this. How people even think to even find loopholes, it's-- I can't even think like that, let alone act on it. But somehow there are people out there.”

But hundreds can and do, with shocking revelations of fraud revealed at a Senate estimates hearing by John Dardo, who is the integrity chief at the independent agency that implements the NDIS, the National Disability Insurance Agency.

“Examples, just in the last week: a $20,000 holiday, $10,000 dollar holiday...Rent subsidies, alcohol...And then there are participants, where the may be claiming things that they shouldn't; and in the past probably wouldn't have been detected. So, we had a participant that brought a car, brand new (at a cost of) $73,000. Money was processed overnight... You name it, it's on the list.”

The federal opposition's spokesperson on the NDIS, Michael Sukkar, says there is anger over what's happened.

He took up the issue in Question Time:

“Minister, NDIA officials told Estimates that under the Albanese Labor government up to $2 billion of the $45 billion per year devoted to the NDIS is being spent on illicit drugs, holidays and expensive drugs just to name a few. And that 90 per cent of NDIS plan managers have significant indicators of fraud. Why has the Minister, and his hand-picked CEO allowed this to happen?”

Some of those responsible for the misuse of funds have been pursued and imprisoned.

This includes an occupational therapist who was found guilty of 22 acts of fraud.

NDIS Minister Bill Shorten says due process must be followed.

“The very reason you heard from John Dardo, is because I encouraged him to come and work at the NDIA. Before me, there was no John Dardo telling these facts. The fact that we're uncovering some of the roads is because not because they've all started, you know, last week, they've been there and no one's addressed them. Now we are addressing them.”

Laws that give the NDIA more powers to crack down on fraud, freeze plans, and define what support NDIS participants can access have now passed the lower house.

The draft legislation also requires NDIS participants to undergo new needs-based assessments for federal government funding.

The laws aim to cap spending growth by eight per cent per year, reducing the overall cost of the NDIS by $14.4 billion over the next four years.

The bill has now been sent to the Senate, where the Greens hold the balance of power.

It's been sent to the Senate, where the Greens hold the balance of power.

Jordon Steele-John, the Greens Disability spokesman, says the government is undermining the NDIS.

“It is a cynical, targeted, attempt to undermine disabled people and our families, and to get away with causing us harm.”

While NDIS Minister Bill Shorten acknowledges the vast majority of participants do the right thing, he says there is a need for greater accountability.

“But it's a matter of just being truthful. Some disability advocates, and some people in the service provision say, 'Don't talk about the problems because it demonises everyone.' It doesn't demonise everyone. But there are some people who just want to talk about the problems - I don't include of course the Canberra Gallery - but there are some people who never want to talk about the problems, but never the successes. The truth is, it's doing well. But it needs to have more consistency, equity, transparency and accountability.”

Federal Treasurer Jim Chalmers says it is imperative that those people who are misusing funds are stopped.

“And so we need to weed out the bad actors, we need to weed out the opportunists because every dollar that is thieved by people doing the wrong thing is a dollar that can't be used to support people who genuinely need our support and our help.”


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