The National Disability Insurance Scheme (NDIS) has been a lifeline for individuals living with disabilities and their caregivers, providing much-needed access to support and services.

However, like any government program, it has its downsides. Criminals have been exploiting vulnerable members of the NDIS and stealing millions of dollars from taxpayers.

This has resulted in a significant loss of funds that could have been allocated to the individuals who require it the most.

Since its creation in October, the NDIS fraud fusion taskforce has been reviewing suspicious payments, with a staggering $300 million currently under scrutiny.

The figure has increased by $50 million in just three months, and the taskforce has received 1,700 tip-offs in one month alone.

The task force is investigating 38 cases, including accusations that crime syndicates are using cash vouchers and gifts to lure Australians into faking medical evidence and diagnosis of disability to sign up for the scheme.

The number of suspicious payments increased by $50 million in just three months. Credit: Shutterstock.

There have also been reports of individuals using NDIS funds to pay for luxury lifestyle items and holidays.

Additionally, there are allegations of fraudulent payments made for services that were never delivered or that the client should not be eligible for.

NDIS Minister Bill Shorten has been fighting back since the matter first arose.

'Every single tip-off will be analysed,' he said in a statement.

'We are encouraging people to continue to help us in our efforts to stamp out dodgy behaviour.'

It was reported in August that the Hamzy network, notorious for operating in western Sydney, was one of the groups accused of defrauding the NDIS.

Shockingly, network members allegedly used violence to extort intellectually disabled individuals. One person was reportedly threatened with a knife, while another family was threatened with death by standover merchants attempting to steal their NDIS entitlements.

In another case, an individual was allegedly threatened with being committed to a psychiatric ward unless they assisted criminals in scamming the system.

According to Michael Phelan, the Australian Criminal Intelligence Commission Chief, up to 20 per cent of the NDIS annual budget of almost $30 billion may have been misused.

To combat this issue, last year's federal budget established the $126.3 million anti-fraud NDIS task force, which includes the federal police, tax office, and Australian Criminal Intelligence Commission.

The National Disability Insurance Scheme (NDIS), which was legislated in 2012 and went into full operation in 2020, is designed to provide essential funding and care to half a million Australians who need it.

However, the rapid growth of the NDIS is making it an increasingly costly program, with more than 280,000 Australians recently joining, and costs for every individual on the NDIS are expected to rise by 18.6 per cent over the next four years.

The NDIS was designed over a decade ago and was projected to cost $166.6 billion over four years. However, it turned out to be an underestimate of $8.8 billion.

Still, Treasurer Jim Chalmers is determined to make the NDIS a sustainable scheme.

'We choose dignity for Australians with disability,' he said in a statement to Parliament last May.

'This Budget begins the task of repairing the NDIS and securing its future.'

Key Takeaways

• Criminal syndicates are targeting the National Disability Insurance Scheme (NDIS) and rorting hundreds of millions of dollars in taxpayer money.
• The NDIS fraud fusion taskforce, created in October, is reviewing $300 million of suspicious payments.
• Among the investigations are accusations that crime syndicates are using cash vouchers and gifts to get Australians to sign up for the NDIS by faking medical evidence and disability diagnoses.
• NDIS Minister Bill Shorten has vowed to crack down on the misuse of money meant to help the most vulnerable, with reforms expected to be announced soon.

Members, it is horrible to think that in addition to the everyday struggles of living with a disability on a daily basis, criminal networks are attempting to take advantage.

If you know of anyone being targeted by a suspicious group or individual, then contact your local police department or Crime Stoppers on 1800 333 000.

Stay safe out there, members! Also, feel free to share this article with your friends and loved ones so they can be informed too.

 

[Cher]

It's about time this has happened.....having personally experienced several fraudulent charges for services not rendered and when queried regarding these charges being informed that these services were provided. I started to keep a diary of who, when, where and why and checked all invoices before being sent off for payment. If a person without a disability has to go to this extent to keep things in check, imagine how impossible it could be for someone who does have a disability.....I know there are some who would have no idea.

 

[mylittletibbies]

This is a disgrace, I self manage my daughter's funds so am on top of every expense I pay. I do realise however that not everyone has the time or knowledge to self manage and must rely on "providers* some of whom charge exorbitant prices.
I negotiated a very reasonable rate with my daughters part time carer, but I have also heard of unscrupulous people who collude with friends, write out false invoices for services never provided and use the funds for personal gain.
Obviously these people would not be scamming as much as professional crime syndicates, but across the board this will also add up to a large sum of money.
These people should hang their heads in shame, as they are stealing money provided for the improved life style and care of their loved ones.

 

[Kelpie]

This is very sad indeed that there are people out willing to do anything to make a dollar even though it is illegal to do so.
The point is though that, even when these people get caught and tried before the Courts, the penalty does not pay justice nor reflected to the crime these individuals do. Hence why there is no deterrent for someone to come up with any ideas to scam the system all at the cost of the people that really needs it.

 

[Milica]

They rolled out the NDIS scheme without even really knowing what they where doing or how to run it! & still don't. Lets just throw some money out there. The ndis was meant for the most vulnerable in our society. There should have been a foolproof plan first for who exactly is entitled to ndis & in meeting the criteria for this much needed assistance-not every td&harry. People that have a legitimate physical and or intellectual disability are the ones who are most definitely entitled to ndis, and need every bit of help that is available for them. The Gov't would be aware surely, who is entitled and who is not - by the medical reports that are presented, the families or full time carers reports. Instead it seems everyone has just jumped on the bandwagon of this scheme. In some cases as presented on t.v. and in the papers, the people who really need ndis, the funding that it provides to care for & improve peoples lives who have a disability, there claims are being unsuccessful for the funding package! To have $300 million currently under scrutiny is disgraceful, whilst legitimate genuine cases are waiting to be granted assistance. So we can just afford to lose $300 million? i do sincerely hope the Taskforce that is setup to investigate this scheme has great success in stopping the rorting of the system.

 

[MindyMac]

The NDIS will be shut down. It has to and all because of fraudulent people.

 

[relljube]

Another of Kevin 07 brilliant idea without a clue as to how it was going to be implemented. Perpetuated by both sides of Gov since. Nobody willing to accept the responsibility of cleaning it up. So much social money being wasted it is no wonder the baby boomers are pi..ed off. All those taxpayers dollars that should have been allocated to pensions etc, Future generations will be lucky to get any sort of pension when and if they retire.

 

[Kelpie]

They rolled out the NDIS scheme without even really knowing what they where doing or how to run it! & still don't. Lets just throw some money out there. The ndis was meant for the most vulnerable in our society. There should have been a foolproof plan first for who exactly is entitled to ndis & in meeting the criteria for this much needed assistance-not every td&harry. People that have a legitimate physical and or intellectual disability are the ones who are most definitely entitled to ndis, and need every bit of help that is available for them. The Gov't would be aware surely, who is entitled and who is not - by the medical reports that are presented, the families or full time carers reports. Instead it seems everyone has just jumped on the bandwagon of this scheme. In some cases as presented on t.v. and in the papers, the people who really need ndis, the funding that it provides to care for & improve peoples lives who have a disability, there claims are being unsuccessful for the funding package! To have $300 million currently under scrutiny is disgraceful, whilst legitimate genuine cases are waiting to be granted assistance. So we can just afford to lose $300 million? i do sincerely hope the Taskforce that is setup to investigate this scheme has great success in stopping the rorting of the system.

""(They rolled out the NDIS scheme without even really knowing what they where doing or how to run it! & still don't)""

With that part I agree 110%.

But what can you expect. It was launched and released without any proper thoughts put into it.
Who was in charge of that catastrophy.? Will there be any heads rolling as a consequence.?

 

[Wogarl@1]

Many that get ndis, have family at home that can do the cleaning and shopping that’s needed. Still need other medical assistance though. I would like to talk to ndis about this problem

 

[Jenny cownie]

I would be looking at their contractors if i were them .I have seen two bathrooms done for n d i s at the cost of more than thirty thousand dollars.And they are horrible A legit bathroom company could do them for this price or less and make them look professional.

 

[Johnp5370]

You are also being fraudulent , see this