Government-Led Taskforce Targets Exploitative Practices in the NDIS
In a calculated effort to address exploitative practices within the National Disability Insurance Scheme (NDIS), a recently established taskforce is directing its focus towards businesses charging exorbitant prices for services, support, and equipment. This strategic initiative takes on added significance in light of the recent AUD 83 million injection by the Australian government into the NDIS.
The taskforce, composed of representatives from the consumer watchdog and two NDIS agencies, is specifically honing in on differential pricing—a practice wherein providers charge higher fees to NDIS participants than non-participants. Two months ago, NDIS Minister Bill Shorten unveiled plans to enact new legislation, equipping the NDIS Quality and Safeguards Commission with the authority to sanction or ban providers engaged in exploitative practices.
To fortify these endeavors, the federal government is earmarking additional resources for the Australian Competition and Consumer Commission, empowering it to identify and take action against providers violating consumer laws. Over the next four years, an investment of AUD 6.7 million has been allocated to thwart participant exploitation and mitigate overall scheme costs.
Shorten underscored the government’s dedication to curbing unscrupulous practices, affirming,
“The Australian government is determined to block and stop unscrupulous providers exploiting NDIS participants to safeguard NDIS funding and protect participants.”
The firsthand account of Christian Astourian, an NDIS participant, sheds light on the tangible impact of such practices on individuals. Astourian cited an instance where he received a quote exceeding $800 to fix a loose bolt on his wheelchair, sharply contrasting with a local panel beater who rectified the issue for free.
Additionally, Astourian highlighted a substantial pricing gap for a remote control replacement, with NDIS participants being charged $350 compared to $120 for non-participants.
This crackdown on dubious providers aligns seamlessly with the government’s broader strategy to mitigate the escalating costs of the NDIS. Prime Minister Anthony Albanese acknowledged the unsustainable trajectory of the scheme’s projected cost, anticipated to surpass $100 billion annually within a decade.
An independent NDIS review, released two months ago, advocated for enhanced market monitoring and the mandatory registration of all providers, aiming to ensure transparency and value for money in the NDIS system.
