Tough new laws designed to protect the NDIS from fraud and serious misconduct have passed Parliament, in one of the most significant integrity crackdowns since the scheme began. For participants, families, and the many providers doing the right thing, the changes are aimed at making the scheme safer and rooting out those exploiting it.
What the New Laws Do
The National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025 became law after passing Parliament, delivering a suite of new powers and penalties targeting what the government bluntly described as fraudsters, predators, and shonks.
The headline measures are significant. It is now a crime to fail to comply with a banning order, carrying a maximum sentence of five years imprisonment. It is also a crime to provide supports that require registration without being registered, again carrying up to five years imprisonment. And fines for serious code of conduct breaches have been increased by up to 40 times, rising from a maximum of $412,500 to more than $15 million in cases where serious misconduct leads to death or serious injury.
Modernising How Claims Work
Beyond penalties, the laws also modernise the scheme’s claims system. They introduce mandated electronic claim forms designed to prevent fraud and abuse, and create a new power for the National Disability Insurance Agency to request evidence before claims are paid, rather than only being able to investigate after the fact.
What the Government Said
The Minister for the NDIS was direct about the message the laws are intended to send, stating that fraudsters and shonks who think the NDIS is a soft target should reconsider, warning
“otherwise you might spend the next couple of years in a prison cell.”— Minister for the NDIS
The Minister added that the new laws put fraudsters on notice and give the NDIA and NDIS Commission new powers to protect the disability community from predatory behaviour, while acknowledging there’s still more work to do to clear bad actors out of the sector.
Why This Matters for Participants
Fraud isn’t a victimless problem in the NDIS. When providers rort the system, it undermines the scheme’s social licence, drains funds meant for genuine support, and in the worst cases exposes vulnerable participants to exploitation and harm. Stronger penalties and the ability to check claims before they’re paid are aimed squarely at protecting the people the scheme exists to serve.
For the overwhelming majority of providers doing the right thing, the changes shouldn’t disrupt day-to-day operations, though they reinforce the importance of proper registration and compliance. For participants, the practical takeaway is reassurance: the system is being actively policed, and there are clear channels to report concerns.
Anyone with information about suspected NDIS fraud can contact the NDIS fraud reporting and scams helpline on 1800 650 717.
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