NDIS integrity inquiry hears raft of alarming claims and calls for greater whistleblower protections

A support worker cut keys to a deafblind National Disability Insurance Scheme (NDIS) participant's home without their knowledge, a parliamentary inquiry has been told.

The claim was one of a raft of concerns raised today at an inquiry into the scheme's integrity, with evidence also given that many people with disability do not formally report misconduct due to a perception the scheme's watchdog is a "toothless tiger".

The work of the NDIS watchdog and provider complaints body, the Quality and Safeguards Commission (QSC), and whistleblower protections were among several topics discussed at length.

Deafblind Australia told the committee that deafblind NDIS participants routinely reported "feeling like an ATM", and providers were "primarily interested in … retaining the highest possible percentage of a person's plan, rather than assisting them to achieve [their goals]".

The inquiry also heard a deafblind participant unknowingly had keys to their home cut by a support worker.

The group's Ben McAtamney told the hearing many deafblind participants did not "see a point" in formally reporting misconduct due to a lack of faith anything would be done.

In addition, Mr McAtamney said the complaints processes were not accessible to deafblind people, which prevented or dissuaded them from making complaints.

"There is a bit of hesitance from the community to approach those formal pathways, maybe because of negative experiences in the past … but also … they don't feel cared about or wanted."

Disability Advocacy Network Australia's David Petherick said it was common to see "brave" people with disability "give up" on pursuing their complaints or never hear back about what came of them.

He said an effective complaints system that people with disability felt confident in was critical for the NDIS.

"We desperately want the QSC to succeed … but we recognise they are managing overwhelming demands in the constraints of their budget and the legislation."

The cross-party parliamentary committee has already heard about $3.7 billion was lost to "integrity leakage" last financial year, that the scheme was set up without robust payment guardrails, and sophisticated organised crime groups operating overseas were increasingly exploiting government programs, including the NDIS.

The NDIS has been projected to cost more than $50 billion this financial year, with increasing reports of widespread fraud, particularly from providers, leading to this inquiry.

Fraud is not a major driver of the scheme's overall growth, though it remains a key target for the Albanese government.

Major cuts to the NDIS were announced last month, with about 300,000 people with disability to either be kicked off or prevented from accessing the scheme over the next four years, saving more than $36 billion over that time.

The legislation required to enact those changes, which has been slammed by the Greens and disability community, has been referred to the Senate for a separate inquiry with a reporting date of June 16.

The bill also includes measures to plug gaps in oversight and require more providers to register with the scheme, while also allowing more automated decision-making and giving federal minister Mark Butler sweeping powers to cut certain types of supports.

Calls for whistleblower protections

The Human Rights Law Centre's Whistleblower Project used today's integrity hearing to renew calls to bolster NDIS whistleblowers protections, which it said was among the "worst in the country".

Despite some improvements in recent months, the project's Madeleine Howel said the laws remained inadequate.

"Whistleblowers play a critical role in exposing wrongdoing, ensuring there is integrity in the NDIS," she said.

In the December 2025 quarter, about 94 per cent of all NDIS providers were unregistered, meaning the QSC and other government agencies had little to no oversight of them.

The government has trumpeted the upcoming expansion of mandatory provider registration as a key measure to crack down on fraud.

Groups representing allied health professionals told the hearing that could benefit large organisations and lock out smaller businesses or drive them away from the sector due to the high costs and administrative burden.

Authorities still encountering barriers

Australian Federal Police (AFP) acting commander of criminal assets, fraud and corruption, Timothy Underhill, said the AFP had 55 active investigations underway into NDIS fraud.

Since the creation of the multi-agency Fraud Fusion Taskforce in 2022, he said the AFP had seen a "significant increase" in referrals and its ability to support other investigations.

"Across four investigations over the last four years, we're restrained a total of $12.1 million. We have restrained cash, crypto, luxury vehicles, properties, jewellery and gold and silver bullions," he said.

However, Mr Underhill said "significant barriers" to anti-fraud work remained, including the dissipation of funds offshore and "complex and opaque company structures".

"[This is] methodologies such as phoenixing to avoid detection and conceal conduct from law enforcement," he said.

A number of suspected offenders have been able to flee Australia, adding further complications, he said.

Mr Underill said the government's legislation before the Senate, if passed, would enable the AFP to more easily access evidence that could help with its investigations, such as banking information.

Australian Securities and Investments Commission (ASIC) executive director of enforcement and compliance, Chris Savundra, said the corporate regulator did not have data on phoenixing in the NDIS because its work revolved around more specific offences.

"There's a broad spread of work, some of those could well be characterised as being phoenix activity, but we don't look at it from a prosecution perspective," he said.

The Office of the Director of Public Prosecutions (DPP) revealed there had been 48 successful prosecutions since July 2018 related to NDIS fraud, with 32 currently before the courts or being assessed for prosecution.

The total quantum of the fraud from the 48 prosecutions, the bulk of which was conducted by providers, was about $13.5 million, the DPP's Andrew Doyle said.

The committee will report by July 2.