The Federal Government is introducing tougher penalties and new criminal offences for NDIS providers, aiming to improve safety and deter misconduct. 

NDIS Minister Bill Shorten says the government’s ‘Getting it Back on Track’ legislation will strengthen the NDIS Quality and Safeguards Commission's powers to boost participant protections and service quality.

The proposed reforms will increase maximum fines for providers from $400,000 to over $15 million when participant harm occurs, aligning with penalties for workplace injuries. 

The current disparity sees a participant's life valued 38 times lower than a worker's under existing health laws. 

“This is a legislative message from the parliament of Australia to the courts,” Shorten said.

“These changes are well overdue to ensure the watchdog has the powers it needs to keep dodgy providers out of the NDIS for good.”

The Commission will also gain the power to refer providers for criminal prosecution for serious breaches of registration conditions. 

The amendments will expand the scope of banning orders to include those in related roles, such as auditing and consulting, to ensure broader compliance across the sector.

The legislation comes in response to recommendations from the Independent NDIS Review and the Disability Royal Commission, addressing long-standing safety and integrity issues. Consultation will begin immediately, ramping up in November, and will involve the Disability Reform Ministerial Council, state and territory officials, advocates, and service providers.

“It will deliver strong measures to deter aggressive commercial practice by providers that exploits NDIS participants and erodes scheme sustainability,” Shorten said. 

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