This week, the Federal Government introduced the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025. This legislation is intended to be a major step in strengthening compliance, improving participant safety and safeguarding the integrity of the NDIS.
At Management Governance Australia (MGA), we believe that, based on what we’ve read, these changes can enhance participant safeguards and service quality. However, they also bring new responsibilities for providers, consultants and auditors, as well as for the Agency and the NDIS Commission.
What’s Changing?
- Tiered penalty framework: Civil penalties will now be scaled based on severity, with serious contraventions attracting up to 10,000 penalty units (over $15 million for corporations). New criminal offences apply for failing to comply with banning orders (up to 5 years imprisonment).
- Criminal offences for unregistered providers: Delivering regulated services such as SDA or behaviour support without registration will be a criminal offence, with penalties including imprisonment and fines. Unlike some who have already expressed concerns about these penalties, we have no issue with criminalising what most would regard as criminal behaviour.
- Expanded banning orders: Consultants, auditors and other individuals involved in NDIS-related activities can now be banned for misconduct or practices that put participants at risk.
- Anti-promotion orders: The Commissioner can prohibit promotional activities that undermine NDIS principles, including misleading marketing about NDIS funds and exaggerated SDA returns. (Finally! No more ‘white shoe brigade ’12 to 18% return’ workshops on the Gold Coast!), or the unethical sale of NDIS businesses (e.g., by inflating valuations based on unrealistic growth projections or misleading claims about guaranteed returns).
- Enhanced regulatory powers: The Commission will have stronger authority to gather information quickly, issue evidentiary certificates for court proceedings, and enforce compliance proactively. For example, by intervening early when risk indicators appear, such as suspicious billing patterns, unregistered providers delivering regulated services, etc, applying graduated enforcement tools and using data analytics and intelligence to identify emerging risks and act before participants are affected.
- Participant safeguards: A 90-day cooling-off period will apply to participants who wish to withdraw from the Scheme, ensuring informed decision-making.
- Operational changes: Mandatory electronic claiming for providers and clarified powers for the NDIA CEO to vary plans to increase or decrease funding.
What All This Means for Providers and Partners
- Greater scrutiny: Expect more audits and compliance checks.
- Higher risk: Criminal liability for unregistered service delivery.
- Marketing review: Ensure all communications align with NDIS principles.
- Consultant oversight: Engagement policies must address new banning powers.
Beyond Compliance: Why the NDIS Commission Must Become a Modern Regulator
It’s a fact that the Bill strengthens enforcement powers and introduces tougher penalties, all essential steps for restoring trust in the NDIS. But legislation alone won’t deliver better outcomes unless the NDIS Commission evolves into what Malcolm Sparrow calls a modern regulator.
Traditional regulatory models often focus on process and punishment. Sparrow argues that this approach fails in complex environments like disability services, where risks are diverse and participant safety is paramount. A modern regulator, by contrast, is risk-based, problem-solving, and outcome-focused.
Key Attributes of a Modern Regulator
- Risk-Based Orientation: Target the most significant harms rather than applying uniform compliance checks.
- Problem-Solving Mindset: Go beyond rule enforcement and pick important problems and fix them.
- Outcome-Focused Performance: Measure success by improvements in participant safety and service quality, not by audit counts.
- Responsive and Proportionate Action: Combine enforcement with education and capacity-building.
- Intelligence-Driven Operations: Use data analytics to detect emerging risks and allocate resources effectively.
- Integrated Compliance Strategies: Foster a culture of continuous improvement, not fear of punishment.
Implications for the NDIS Commission
The Commission’s current approach signals progress, but gaps remain in risk frameworks and intelligence capabilities. To meet the demands of the new Bill, the Commission must, in our view:
- Build robust risk-control frameworks.
- Invest in data-driven compliance monitoring.
- Develop problem-solving capacity within its workforce.
- Strengthen collaborative engagement with providers.
These reforms are an opportunity not just to tighten rules, but to transform the Commission into a regulator that actively reduces harm and improves outcomes for participants and, by association, ensures that providers who are doing the right thing are over time, no longer competing with what we like to call ‘the bottom feeders’ in the Scheme!
How MGA Can Help
At MGA, we provide comprehensive support to help providers navigate these new compliance requirements with confidence.
Our team conducts detailed compliance audits to identify gaps and ensure adherence to NDIS standards. We assist in reviewing and updating policies so they align with the latest legislative changes.
Through tailored staff training programs, we empower teams to understand and implement best practices. Additionally, our risk management strategies are designed to proactively address potential issues, safeguarding both your organisation and the participants you serve.
A Measure Intended to Produce Positive Results
These reforms aim to protect participants and uphold the values of choice, control, and safety. While they increase compliance obligations, they also strengthen trust in the NDIS system.
What do you think? Will these changes improve participant outcomes or add unnecessary complexity?
#NDIS #DisabilitySupport #Compliance #QualitySafeguards #MGA