How to avoid NDIS fraud if you're a provider
In one of his first speeches as Minister for the National Disability Insurance Scheme, Bill Shorten flagged cracking down on fraud and rip-offs as one of the Government’s biggest priorities when it comes to the NDIS. An estimated $1 billion is stolen from the NDIS by fraudsters each year. That’s a huge amount of money that could be going towards supporting people with disability, which is why it’s taken so seriously.
So, what counts as fraud and how (as a service provider) can you avoid inadvertently ending up in the National Disability Insurance Agency’s sights?
What is fraud?
Fraud happens when someone breaks the law to gain something. When it comes to the NDIS, there are many kinds of fraud that providers can commit, but it generally relates to a person trying to 'rip off' or steal from NDIS participants and the NDIS.
What sort of actions count as fraud?
Fraud can range in scale from an organised criminal gang scamming hundreds of participants, through to a self-employed service provider overcharging for travel time.
Some of the actions that the NDIS categorise as fraud include:
- Unlawfully obtaining and using NDIA information or restricted data
- Providing false or misleading information
- Using fake documents and invoices
- Making claims for services or products that were not provided
- Misusing funds
- Theft
- Unlawful disclosure of official information
- Accounting fraud
- Fraudulently claiming leave, travel and other entitlements
- Misuse of assets, equipment or other facilities.
- Is fraud the same as non-compliance?
- Non-compliance is a broad term that refers to not following the rules of the NDIS. There are several types of non-compliance that range in severity from accidentally making a mistake all the way through to fraud and corruption.
- Invoicing over the price limit or charging a participant twice by mistake are not considered fraud, as fraud needs to have malicious intent behind it.
Who investigates NDIS fraud?
Cases of fraud that are particularly serious and organised are investigated by the NDIS Fraud Taskforce, a special partnership between the Australian Federal Police, the NDIA and Services Australia. Less severe cases of fraud are investigated by the NDIA directly, but the NDIA still take these accusations very seriously and the punishments reflect that.
What are the punishments for NDIS fraud?
Depending on the nature of the crime and the severity of the fraud, punishments can range from fines to jail time.
We’re here to help
If you have any questions about invoicing your customers or your obligations as a service provider, our Knowledge Centre is filled with tips and guidance to bring clarity.
If Plan Partners are your customers’ plan manager or support coordinator, we can provide additional assistance with things like setting up service agreements or help with invoicing.
Tips to remember
Here are some useful tips...
- There are many kinds of NDIS fraud that providers can commit, but it generally relates to a person trying to 'rip off' or steal from participants and the NDIS.
- Fraud can range in scale from an organised criminal gang scamming hundreds of participants, through to a self-employed service provider overcharging for travel time.
- Depending on the nature of the crime and the severity of the fraud, punishments can range from fines to jail time.
- Familiarise yourself with NDIS rules and regulations, and ask for help if there’s something you don’t understand.
- Take time to fill out every part of your invoices correctly, including the customer’s name, the date you provided the support, the line item and rate.
- Service agreements are one of the most effective and simple ways for both providers and participants to protect themselves.
- Keep accurate and complete records that detail the support you have provided to participants.