Labor boosts fines by 40 times, adds jail time for ‘shonky’ NDIS providers

“This bill establishes new powers to hold those shonks and criminals to account,” she said.

“Where we see fraud, too often we see violence, abuse and neglect. This isn’t just about cracking down on the bad actors in the system, it’s also about keeping NDIS participants safe.”

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The current rules allow $400,000 fines for serious breaches of the NDIS code, which requires that providers act reasonably to prevent violence, abuse and neglect. A new “aggravated breach” for failures that lead to serious injury or death will be introduced, attracting a maximum fine of $16.5 million.

“Currently, an NDIS provider will face a dramatically larger fine for a death of a worker than a death of a participant on their watch,” the government said in a statement. “This legislation will bring that closer in line.”

Criminal penalties are also coming for providers who operate without registration when they are required to have it, such as when they provide specialist accommodation, use restrictive practices, or manage plans. The toughest penalty will be two years’ jail, or $16.5 million. Failure to comply with a banning order could attract five years’ jail.

False claims about how participants can spend NDIS funds will also attract $400,000 fines if a provider refuses to take ads down.

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