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

Transcript

Senator ROBERTS: Thank you for being here today. I have some questions. It’s very much a contradictory set of questions. I have questions about fraud and questions about how to make more people eligible. The whole NDIS, NDIA, seems to be full of contradictions, from the moment it started back in 2010 or whenever it was.  Could I ask questions about the Fraud Fusion Taskforce first, please. I have some NDIS data—I’m not sure exactly where it came from, but it’s from within the NDIS—that says that for the June 2024 quarter there were over 7,000 tip-offs, but only 16 prosecutions for fraud. Why has the taskforce achieved only 16 prosecutions in a quarter despite 7,000 tip-offs? Can you explain the gap? And I’m not pretending that it’s easy. 

Mr Dardo: The tip-offs that we receive may be treated through a range of mechanisms. It might be that we look at them and we’re able to engage with a provider or a participant and deal with them through education. The tip-off may require us to implement some sort of prepayment review where we would nudge a person to give us some evidence before we make a payment, and maybe we would do a post-payment review, a historic review. It may be that we do a more serious administrative compliance intervention and it may be that we implement manual payment reviews where we stop payments until we receive evidence for each claim. In the most extreme cases, we may revert to a criminal investigation and/or prosecution. It’s really important to note that there’s a spectrum of treatments, depending on the severity of the tip-off and the efficacy of the tip-off. In some cases, we look at the tip-off and it’s actually a misunderstanding, and there’s no substance underneath it that requires an intervention. 

Senator ROBERTS: So, the tip-off itself is wrong? 

Mr Dardo: It might be wrong, or it might be a misunderstanding. In some cases, it’s malicious—somebody having a go at someone else. So, it’s really important that, while we do measure tip-offs and while we have put in enormous programming to improve the way we capture, understand and process tip-offs, the volume of tip-offs alone does not indicate the requirement for a prosecution. While I am talking about tip-offs, once upon a time tip-offs used to be captured, effectively, on a spreadsheet. We have put in a range of system improvements to make the tip-offs more able to be captured in a codified way. So, whether it’s through the call centre or through our online systems, they’re able to be captured in a way where we can code and then analyse the content of the tip-offs. The beauty of that is that, as the volumes have increased—and they are increasing; they continue to increase—we’re more able to run  analytics over the top of them and understand whether the tip-off relates to previous tip-offs or previous treatments or previous risks, then cluster them or group them with associated intelligence or associated treatments. The systems continue to improve by the week, but I don’t want you to assume that every tip-off is going to lead to a prosecution. That would never be the case.  

Ms Myers: As members of the Fraud Fusion Taskforce who work very closely with the NDIA, since November 2022, we have executed over 306 compliance outcomes, including 179 banning orders, 38 revocations of registration and 89 other regulatory outcomes. So, in addition to the prosecutions undertaken, there have been a number of regulatory actions taken. 

Senator ROBERTS: So, restrictions have been imposed and bans et cetera. 

Ms Glanville: I think the really important piece of this is that it’s a very collaborative arrangement between the NDIA and the commission as well as other enforcement agencies. The development and growth of that, I think, has been particularly positive for being able to identify—better analyse, as Mr Dardo was saying—and understand what are the best actions that can be taken to address whatever is the nefarious or other action that has occurred. I think that’s a really important part of this process as well. 

Senator ROBERTS: So, it is a big issue to you, the NDIS and NDIA. 

Ms Glanville: To the commission and the agency, yes. 

Senator ROBERTS: It’s also a matter of restrictions, but I’ll go to total prosecutions and convictions for NDIS fraud. How many since the taskforce was established? 

Mr Dardo: I think, again, it’s really important that we step back. It’s a metric that has a significant lag effect. 

Senator ROBERTS: Due to the court system plus the investigation? 

Mr Dardo: Yes. You may start something and there may be interventions that are lower-level interventions or they may rapidly escalate. Before search warrants are executed—in some cases it’s very, very fast. It could be weeks or a month. In some cases it takes longer. But, even after search warrants are executed, sometimes there’s a charge on the day, sometimes there’s a court attendance notice, and sometimes it takes another six to 12 months to get to a charge and then to get in front of the courts. In some cases we’re seeing cases not getting in front of the courts for several years.  So can I just flag that the number of prosecutions is not a number that’s a great indicator of the level of activity that is occurring, and it’s certainly not a number that reflects the enormous collaborative effort that’s occurring across the agencies. Our colleagues at the commission have been phenomenal in partnering with us, as have been a number of other agencies—Services Australia and the tax office and so on. So sometimes the interventions are actually better administered by other agencies or in partnership with other agencies. If you want something that’s a more indicative number of activity at that sharp end, like the activity that you’re trying to get to, at the very tip of the iceberg—just in the first four calendar months of this year, we did 35 warrants. That’s more than were done in four whole years before the taskforce was established, and that was just in the first four months. So, if you’re looking for an indicator of sharp activity, we’re talking a 12-fold increase in activity in a taskforce. And that doesn’t even scratch the surface of the things that happen underneath investigations—the interventions that are going on.  

Senator ROBERTS: It’s pretty daunting. I don’t know if it was you—I think it may have been you—who, a year or so ago, told us that you were overwhelmed and that the court system would not handle it.  

Mr Dardo: It’s really important to note—and I’ve said this a number of times on the record in this house—that debts, prosecutions and raids are the wrong metrics for a successful system. What we really are trying to build through all our big investments is how you prevent those bad things from happening. If you look at the big system investments we’re making, they’re trying to figure out how you make it easy for people to get it right and really hard for them to get it wrong. That means that all the people trying to do the right thing, which is the majority, are having a better experience. It’s more streamlined, it’s easier for them to get paid the right amount, and they’re less likely to get themselves into a misunderstanding and less likely to be abused by a non-compliant provider. That upfront prevention is, overwhelmingly, our mission. Everything we’re building in the Crack Down on Fraud program is about building prevention upfront so that you can safeguard participants and get sustainability—whether it be improving the identity systems for the people that log in, which we’ve delivered; whether it be improving the identity systems for the providers, which we’ve now delivered; whether it be improving the evidence requirements for claiming so we’re more confident people are getting it right, which we have partially delivered and continue to improve; whether it be building a data analytics system that allows all that data to be pooled together so we can identify risks and stop at prepayment where we can; or whether it be working with our partners to have those risk detections so that we can identify problematic providers and exit them from the system at the earliest opportunity. All those things that prevent bad things happening have to be the focus. You’ll never get rid of the need to raise debt or prosecute; that will always be something in the arsenal. We will need to be good at it, but it should be the last resort. You would hope whoever replaces me in two or three or four years time is sitting here, saying, ‘Actually, we only had to do five prosecutions because the systems work so well that we didn’t have to prosecute.’ 

Senator ROBERTS: What you’re saying makes perfect sense. Nonetheless, some people will deliberately bypass just about everything. 

Mr Dardo: Yes. 

Senator ROBERTS: Deliberately.  Have there been any custodial sentences handed out? 

Mr Dardo: There have been, absolutely. Not only have there been custodial sentences; there have also been successful confiscations of assets. There are people that have gone to jail and are serving custodial time. There are people we’ve grabbed $4 million or $5 million worth of assets from. We have cases in progress right now where we’ve worked with partners, whether it be state or federal, to put seizure orders on, in one case, 33 houses and three cars. Let me emphasise: that was a provider. Custodial is in the toolset, but remember: custodial has got to be an outcome from the courts. We don’t get— 

Senator ROBERTS: Which can take months and months. 

Mr Dardo: It can take years. At the end of the day, the court makes the decision about custodial. We put our best case in the brief, the CDPP puts the best case in front of the courts, and the courts make the decision. 

Senator ROBERTS: I’ll say it again on the record: what you’re saying makes perfect sense. I commend you for that. I don’t know whether you’re doing a good job or not, but it sounds like the right approach to me. 

CHAIR: How much more time do you need, Senator Roberts? 

Senator ROBERTS: Probably five minutes, please, Chair. 

CHAIR: Okay, no problem. 

Senator ROBERTS: My subsequent questions are not really necessary because of the comprehensiveness of your answer. 

CHAIR: Can you put them on notice then? Is that what you mean? That’s a no. 

Senator ROBERTS: Apparently, you stated that a survey showed 90 per cent of a group of plan managers exhibited signs of fraud. 

Mr Dardo: Absolutely. 

Senator ROBERTS: How many of those cases have been referred for criminal prosecution? 

Mr Dardo: That was a discussion that I’m pretty sure we had in a previous Senate estimates. It was a particular subset of plan managers, so it wasn’t every plan manager. It was the plan managers that had between zero and 100 clients. I know that sounds weird, but you can have zero clients because you had clients and you’re not claiming for them right now. There were roughly a thousand plan managers with between zero and 100 clients in that sample, and about 899, to be exact, at the time we did the analysis had indicators that we would think are associated with potentially fraudulent behaviour. Again, there are a range of interventions that we’ve applied there. In some cases we have put prepayment reviews on them, where they can’t be paid unless they provide evidence for their claims. If those prepayment reviews turn up and provide evidence that’s problematic—we look at it and we go, ‘That looks like you’re falsifying your invoices, claiming for things that are not remotely connected to the scheme or claiming for participants that are not getting a service’—then we will work with the commission to remove them from the scheme. That’s an intervention that may or may not go to a prosecution. The other intervention we’ve applied is that we’ve made requests for information for historic claiming and we’ve gone back and looked at their historic claiming. We’ve just done another sample of 47 where the majority of those have problematic claims, so either we’ve referred them to the commission for banning or we have removed their ability to claim from us. We’re working through those.  In some cases we executed search warrants with our partner agencies. In one case, we, the commission, the tax office and some other regulators targeted the plan manager. We got access through a search warrant, a tax debt was raised, and there were banning orders from the commission and other regulators to remove them from multiple schemes. That case may proceed to prosecution, and we’ll work our way through it. In that case, debts were also raised from multiple agencies.  So there’s a spectrum of treatments. We are not going to prosecute every single plan manager that we said had fraud indicators, and there may be some where we look at them and we go, ‘The fraud indicators are there, but they didn’t lead to anything.’ 

Senator ROBERTS: Final question—how will you know you’re being effective, and how will we know you’re being effective? How will we know when fraud is out of the NDIA? 

Mr Dardo: Fraud will never be completely out of the NDIA, just like it’s never out of any scheme. There will always be a level of it that just exists. You have to continue to innovate because it’s an arms race to stay ahead. 

Senator ROBERTS: But, right now, the stories are rife. 

Mr Dardo: They are. It’s about continuing that work for prevention. That has to be the overwhelming focus. 

Senator ROBERTS: How will we know if Mr Dardo has done a good job? It sounds good. I’m not being patronising. I sincerely mean that. It sounds good. What you’re saying makes perfect sense in managing the process. It is what very few managers understand. How will we know that the process has good outcomes? 

Mr Dardo: The first time I came here representing this agency, I sat in this room, and we rattled off the half a-dozen things that needed to be built out as capabilities. We talked about the vulnerabilities in the scheme and about identity, the way claiming was working and the way providers were interacting. We rattled those things off.  When we sat down and imagined the program of work that addressed those things, which government funded, that program of work clearly articulated those layers of capability that needed to be built and delivered. You build 

the foundations, and then you’ve got to keep building. But we laid that out as a program of work called the Crackdown on Fraud program—the systems uplift. That systems uplift was funded by government. In February 2024, it commenced. We delivered every single milestone in that program of work between February 2024 and now, on time and under budget. Let me rephrase that slightly—within the timeframes that we promised we would build it. We started two months later than we said we would, so a couple of things have finished a couple of months later than we said they would. But it was built within the timeframe we said we would build it.  One indicator for you that we’re doing a proper job is we are building those layers of defence on time, and, as they go into production, we can actually see that we’re stopping things from happening that used to happen or that used to be completely invisible. We are now more confident that some of those things we promised would be there are there. The journey is not finished; we’ve got a long way to go. But it’s about how we deliver on those promised uplifts so that the system is less likely to be open to abuse by those who want to abuse it. 

Senator ROBERTS: Would you include in that an audit of the systems, to make sure the systems are working as you say? 

Mr Dardo: I can assure you that we’ve got eyes—not just our eyes but everyone else’s eyes—on it. The ANAO comes and looks at us and makes sure that we’re actually building what we said we were going to build and building it on time. The Department of Finance gateway reviewers come and look at us and say: ‘You promised this. Did you build it? Has it been delivered on time?’ So, there is an enormous amount of independent assurers coming and looking at what we promised for the money that we got and whether we’ve built it to the standard that we said we would. In addition to that, we’ve got independent assurers that work on the program with us who write reports for government about whether we’ve delivered what we said we would on time and on budget. The scrutiny is impeccable. 

Senator ROBERTS: Thank you. Thanks, Chair. 

CHAIR: Thank you, Senator Roberts.