Driving Real Change in NDIS Fraud Prevention

When I look at the NDIS and NDIA, I see a system full of contradictions—balancing fraud prevention with accessibility has been a challenge since its inception. In this Estimates session, I focused on fraud and the work of the Fraud Fusion Taskforce. I raised concerns about the gap between over 7,000 tip-offs in the June 2024 quarter and only 16 prosecutions. While I understand investigations are complex, that disparity is striking. Officials explained that not every tip-off is valid; many are misunderstandings or even malicious.

Since November 2022, the taskforce has achieved over 300 compliance outcomes, including bans and revocations, and significantly increased enforcement activity. They highlight that prosecutions are a slow and unreliable metric, pointing instead to indicators such as 35 warrants executed in the first four months of this year—a twelvefold increase from previous years. Custodial sentences and asset seizures have occurred in cases involving millions of dollars and dozens of properties, including seizure orders on 33 houses and multiple vehicles. These results demonstrate that serious fraud is being tackled, even if the full impact takes time to show.

Mr Dardo stressed that success should not be measured by debts, prosecutions, or raids, but by prevention. The Crack Down on Fraud program focuses on identity verification, stronger evidence requirements, and advanced data analytics to detect risks early. These measures aim to make compliance easy and fraud difficult, safeguarding participants and ensuring sustainability. While prosecution remains a tool, the ultimate goal is to reduce fraud so effectively that legal action becomes rare. A recent survey revealed that 899 out of roughly 1,000 plan managers showed indicators of potential fraud, underscoring the need for these preventive systems.

I commend this approach because it makes sense: prevention first, enforcement when necessary. Still, some people will always try to bypass safeguards, and the scale of fraud remains daunting.

Australians deserve confidence that the NDIS is fair, secure, and sustainable. We must continue improving systems while maintaining transparency and accountability. Striking the right balance—protecting participants while cracking down on fraud—is critical, and I will keep pressing for progress on both fronts.

The agency appears to be delivering every milestone of its Crack Down on Fraud program on time and under budget, with independent audits and ANAO oversight ensuring accountability. That level of scrutiny and systems uplift is encouraging, but the journey is far from over.

— Senate Estimates | December 2025

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https://www.malcolmrobertsqld.com.au/driving-real-change-in-ndis-fraud-prevention/