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During the recent Senate Estimates, I inquired with the NDIA about whether individuals with autism, often described as being on the spectrum, and their families are covered by the scheme to receive support? Constituents had informed me that support had been cut without explanation.

I was informed that there’s been no change and that individuals with autism will continue to be included in the National Disability Insurance Scheme (NDIS), with support determined on a case-by-case basis.

I also inquired about the plan for supporting older individuals nearing retirement who already receive assistance under the scheme, ensuring they continue to receive the higher level of support. I was informed that the government is still deliberating on this matter.

Transcript

Senator ROBERTS: Before moving on to my third question, I express my appreciation for the answers to the first two and for Mr Dardo’s concurrence that he’s going to put the details, in response to my first question, on notice—the financial figures. I don’t know who the appropriate person for this question is. Will families supporting a family member with autism be appropriately supported? Is autism covered? 

Ms Falkingham: It is. Can I clarify what your question is about, though. Obviously we cover autism within the scheme. 

Senator ROBERTS: You do? 

Ms Falkingham: Yes, we do. 

Senator ROBERTS: I’ve heard that many people with autism—or who are on the spectrum, as they say—had their services cut off, with little explanation provided. Is that true? 

Ms Falkingham: It’s not true that there has been any change in relation to autism. Autism will always remain part of our scheme. But, if there are any individuals that have got particular cases that you would like me to look at, I’m really happy to do that. 

Senator ROBERTS: Thank you. I have two more questions. What’s planned to support older people currently receiving a disability support package that’s far in excess of an age pension? What’s the plan for them when they reach retirement age? 

Ms Falkingham: That might be a question for our colleagues in DSS as well, because the NDIS review has made some recommendations in relation to making sure that people continue to receive disability supports after 65, but government is currently deliberating on that recommendation. 

Senator ROBERTS: Thank you. 

Mr Griggs: Senator, we can come to that. 

Senator ROBERTS: Sorry? 

Mr Griggs: We can come to that when we get to outcome 1 in DSS tonight. That would be the place to discuss that. 

Senator ROBERTS: That’s it. Thank you very much. 

At the February Senate Estimates I asked the National Disability Insurance Agency (NDIA) how much money has the NDIA been able to claw back through identified National Disability Insurance Scheme (NDIS) fraud? Funding across 16 agencies, including the NDIA, of $140 million over four years was provided in 2022 to tackle fraud. Those agencies are working together. It seems reasonable that we should know what return on this investment we’re getting since we’re paying for it.

There are major concerns with the NDIS. It was hastily brought to life and hastily implemented. There are concerns with both over and under-servicing. That’s not necessarily a reflection on the people in the NDIA, but that’s the reality.

I also asked what is being done in relation to auditing service providers who are sucking the scheme dry through fraudulent claims for services that are overcharged or actually not even provided? My questions regarding the amount actually clawed back was taken on notice, however John Dardo, Deputy CEO of Integrity Transformation and Fraud Fusion Taskforce, freely admits to having layers of concern about NDIS fraud. There are over 600,000 participants in the scheme and Mr Dardo says the system is extraordinarily immature for a scheme paying out over $100 million each day, with 400,000 claims a day. Among the risks they’re managing is whether they can be confident that a participant is a real human being, is in the scheme knowingly and actually exists.

Transcript

Senator ROBERTS: Thank you for appearing today. On the topic of fraud, how much money has the NDIA been able to claw back through identified NDI fraud? 

Ms Falkingham: I’ll ask Deputy CEO John Dardo, who leads that program, to come forward to the table. 

Mr Dardo: Thanks for the question. There are different ways to measure that. One of the ways to measure it is to think about how much we’ve prevented from going out the door by implementing systems or detecting the integrity leak before the money has left the door. Another way to measure it is to look at whether we’ve asked the participant or provider to pay the money back. Another way to measure it is by the amount of money that is subject to a prosecution activity—so where it has gone to the courts. Not all of that is recoverable, because unless there’s criminal asset confiscation, or unless there are penalties being charged, that money may not be recoverable. So there are lots of different ways to measure it. 

What I would say is that, as my colleague mentioned earlier in relation to detecting the anomalies, there are a range of things that we’ve been building up over the last 18 months to allow us to identify where there are integrity leaks, and what I would emphasise is that integrity leaks are very, very strongly correlated to participant risk. The safety of participants is put at risk when money is leaking to the wrong places. It’s because the participants aren’t receiving the services they need, or because we’ve got providers that are dodgy and are actually growing their businesses at the expense of good providers—so they’re wiping out the good providers—or because that money is actually funding activity for participants that is putting them at further risk, whether it be drug abuse, alcohol abuse, risky behaviours or other behaviours. So the money’s important, but the reason we look at the money is the participant safety impact that it has. 

What I would also say is that there’s a level of detail that I can’t share in this forum—I’m happy to do it in a private setting—because we do not want to run a 101 session on how to commit fraud against the NDIA. But I’m on the public record in previous hearings talking about the layers of concern that we have. We have, in round figures, over 600,000 participants in the scheme. The system is extraordinary immature for a system that pays out over $100 million a day, with 400,000 claims a day. It is an extraordinarily immature system. Certainly it’s one of the most immature I’ve seen. If I think about the sorts of risks that we’re managing and investing in, being confident that a participant is a real human being, is in the scheme knowingly and— 

Senator ROBERTS: Actually exists. 

Mr Dardo: actually exists is an area of risk that we’re certainly unpacking and understanding, and we’re identifying things that need to be addressed. 

Senator ROBERTS: Excuse me. Out of respect for the chair wanting to conclude pretty soon, could you take it on notice to provide the figures around the categories of fraud that you mentioned earlier on, please? What money has been saved? 

Mr Dardo: We can do that. 

Senator ROBERTS: There are concerns with the NDIS. It was hastily brought to life. It was hastily implemented. There are concerns with overservicing, as you know. There are concerns with underservicing and there are concerns with fraud. That’s not necessarily a reflection on the people in the NDIA at the moment, but that’s the reality. Please also take it on notice to answer: what is being done in relation to auditing service providers who are sucking the scheme dry through fraudulent claims for services that are overcharged or actually not even provided? 

Mr Dardo: An enormous amount of activity. Some of that activity is some randomised integrity checks. We’ve done tens of thousands of those to try and understand, at a randomised level, what we’re seeing. The sorts of common things we’re seeing include overclaiming, duplicate claims, claiming for services that were never provided and claiming for services that are not consistent with the plan. If I think about some other risk points, we have some particular cohorts where we have very significant concerns about the behaviour of the cohorts, and, when we cross-reference our data with other data such as tax data, for example, we see that some of our providers are non-compliant with basic obligations to the Commonwealth. If they’re non-compliant with their basic obligations to the Commonwealth but they’re managing money on behalf of participants or managing services on behalf of participants, we’ve got concerns. We have several hundred providers where they’re managing money or services on behalf of participants or managing other providers on behalf of participants and yet they’re not compliant with their most basic tax obligations. We’re cross-referencing data with other agencies. 

A taskforce commenced in November 2022. At the most egregious end of the offending, that taskforce has 16 Commonwealth agencies working together to identify networks of providers or syndicates that are targeting the scheme. You may have seen some media coverage about the search warrants being executed, the prosecutions being conducted and passports being seized or surrendered as part of bail conditions. That work is continuing to ramp up. We have over 100 investigations in the pipeline, and some of those cases are very significant both in dollar value and participant numbers being affected and also in the egregious behaviour of those providers. 

Senator ROBERTS: There are a lot of costs involved. Some of the costs are from the 16 agencies that are working with you and they’ll be hidden from the total cost. 

Mr Dardo: No, those agencies were funded as part of that announcement. That funding was $140 million over four years. Those agencies, as well as the NDIA, were funded as part of that Fraud Fusion Taskforce and they’re working in partnership with us. 

Senator ROBERTS: Thank you. 

The government’s spending on NDIS threatens to bankrupt Australia.

The NDIS is a runaway spending rocket which is failing to serve the disabled and getting worse. The service was never set up correctly in the first place and continues to waste billions and let down those who need it because of endemic bureaucratic bungling. There’s zero accountability within this agency. It is letting some abuse the system and as taxpayers we’re footing an exorbitant bill. The NDIS is not fit for purpose, yet a disability service is desperately needed and not reaching many of those it was meant to assist.

In questioning Minister Gallagher about what Labor is doing to fix this problem her answers were unhelpful and it seems she is being deliberately obstructive. Creating another level of bureaucracy won’t address the problem. It’ll only add another burden for taxpayers and extra layers of complexity for those needing help to try and navigate. If Labor is hoping that by ignoring the NDIS problem it will go away, they will be disappointment.

The NDIS needs addressing now before it’s too late.

Transcript

In serving the people of Queensland and Australia, I have four questions. I’ll do a little bit of explaining to get to the point. One Nation simply cannot support a bill that establishes an entirely new disability bureaucracy when the bill does not even define ‘disability’. I wonder: is this an admission that the NDIS has failed or that the government is letting it run completely out of control? I’ll come back to that. 

I remind everyone of the hasty and ill-thought-out concoction of the NDIS. Prime Minister Gillard hastily introduced it for election purposes before an election. Then she was voted out, and the Liberals and the National Party inherited a complete mess. They tightened it up, but it’s still sloppy. In tightening it, we got mixed signals going about services that are being provided to the disabled. That leaves them in a totally inadequate situation. I’m concerned about taxpayers and the disabled in these remarks and questions. If the NDIS continues in its current form, it will send the entire country broke and continue to provide inadequate services to the disabled. 

This bill does not deal with the NDIS. It establishes an entirely new bureaucracy in an entirely new agency. If the Disability Services and Inclusion Bill 2023 and the associated consequential bill pass into law, the Minister for Social Services will be given legislative authority for new spending programs to cover the 88 per cent of Australians living with a disability who cannot access support under the National Disability Insurance Scheme at the moment. 

I want to talk about the NDIS now because it provides financial support to just 610,000 participants, or 12 per cent of Australia’s estimated population living with a disability, while being the second-most expensive social program after the age pension. The annual running costs in the year ending 30 June 2023 were $38.8 billion. That is 26 per cent higher than Medicare, $30.8 billion; 40 per cent higher than aged care, $27.7 billion; and 40 per cent higher than the support for state government hospitals, $27.3 billion. Minister Bill Shorten expects the annual running cost in 2026 to be $50 billion, making it almost double what is spent on state government hospitals. The NDIS is unsustainable at these levels and will not be able to properly provide services for the disabled. 

I’m not going to sign a blank cheque for any government. I won’t be giving the government more spending power until I know how taxpayer money goes to those to whom it is intended, and many of the disabled are not getting the services necessary. Like many Australians, I’ve worked hard to bring up my children and to pay my taxes. Every tax dollar that the NDIA wastes is a dollar that is not spent on health, education and keeping us safe. NDIS participants using their plan money to holiday in exotic places and paying excessively for ordinary items like transit wheelchairs and aluminium shower chairs diminishes support for the program and prevents services to other disabled people who deserve support. Until I’m satisfied the Labor government can manage their departments, I’m not going to give them any more spending power. 

The Auditor-General investigated decision-making in the NDIA, the agency, between 1 July 2016 and 31 March 2017 as part of his report Decision-making controls for sustainability—National Disability Insurance Scheme access. In one group of 150 cases that were reviewed, the decision-maker’s name was not recorded in 42 cases. In another 18 of the 150 cases, there was no record of the reasons for the decision. That’s not accountability for taxpayers’ money. In a review of another 1,339 cases, 13 per cent—that’s almost one in seven—did not have sufficient evidence to support decisions to give lifetime support under the NDIS Act 2013. 

These findings in 2017 led to the Auditor-General making a number of recommendations. Seven of the nine recommendations made in relation to improving decision-making controls and fraud controls were not fully implemented by the time the Auditor-General investigated the NDIA again last year. Despite a history of approving access to the NDIS without lawful authority, senior bureaucrats in the NDIA will not make sure all delegates are trained. Of the 1,147 NDIA planners employed by the NDIA on 30 June 2020, only 73 per cent—under three-quarters—of them had been trained to spend billions of hard-earned taxpayer money. No wonder the NDIA costs cannot be controlled! Not only does the government need to show me it can manage the NDIA in accordance with the law passed in this chamber, but it also needs to deal with the demand shock created by the introduction of the NDIS. The sudden high demand created by the tsunami of money in NDIS participant plans has caused the cost of seeing an occupational therapist, a speech therapist or a psychologist—as well as others—to skyrocket. NDIS is more generous than the Department of Veterans’ Affairs or aged care, and that leads to inequality. That should not be the case. It’s a mess. It’s time the government aligned the price it pays for the same service across different government programs.  

Anyone can apply for a participant package under the National Disability Insurance Scheme Act 2013, but only people with a disability who meet the age, residency and disability requirements and can demonstrate that support is reasonable and necessary are intended to get support for a lifetime. As I’ve already said, it’s a lottery at the moment because decision-making is so poor in the National Disability Insurance Agency due to its messy and improper formation and its lack of foundation at its birth.  

While public servants sit in air-conditioned offices, an army of poorly paid disability workers provide the core supports needed by people with a disability. Disability workers are poorly paid, trapped in a system with little job security or prospects. They’re often working with questionable service agencies. Their employers are small businesses which often have no relevant experience and are unable to provide training or support in what can be confronting and stressful situations. No wonder there’s a shortage of disability workers right now. 

I want to see all National Disability Insurance Agency plans de-identified and made public. Australians need to know what is being funded. They’re the ultimate payers for this service. Employing a qualified chef to teach someone how to cook at home is a luxury that we cannot afford. Prior to NDIS, it was estimated that families provided 80 per cent of the support for a person with a disability and the government provided 20 per cent. The introduction of the NDIS was to shift some, but not all, responsibility to government, with families providing 60 per cent of the support and the government providing the remaining 40 per cent. We don’t know much about the level of family support provided today, but we do know only 30 per cent of all plans are managed fully or partially by the participant or their family, which suggests that government is taking on far more responsibility than was ever planned. Participant managed plans account for 30 per cent of the number of plans but just 12 per cent of the NDIS budget. These budgets are spent, but not overspent. Another 60 per cent of plans are managed by someone other than the participant or their family. These managed plans account for 46 per cent of the NDIS, four times as much. The remaining 10 per cent of NDIS plans are NDIA managed, and they account for 42 per cent of the NDIS budget. The NDIA consistently underspends these plans. Why?  

Until I see lawful, responsible and effective by the National Disability Insurance Agency, I will not be supporting any new spending power by government. One Nation supports disability services, yet they have to be sustainable for the Australian taxpayer or there will be no services in the future, and those services that there are won’t be fit for the disabled. Spending on the NDIS will outstrip all Medicare services. There is billions of dollars of fraud currently happening in the NDIS that the government has done next to nothing to stop. We’ll be opposing this bill until the government can prove it is running the NDIS in a way that isn’t going to send the country broke. 

I’ll go back to my opening question from my first question: is this new legislation an admission that the NDIS has failed or that the government is letting it run completely out of control?

Like Gonski, like the NBN, the NDIS was nothing more than a vote catcher.

Now, its costs have blown out even more, costing taxpayers $700 to $800 million just to try and figure out why it is costing so much.

It seriously needs a good looking into.