National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025

High-Level Summary

The National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025 amends the NDIS Act 2013 to strengthen the regulator’s compliance and enforcement powers, introduce new civil and criminal penalties, extend banning orders and add an anti-promotion power. It also enhances NDIA administrative settings by adding a 90-day cooling-off period for withdrawal, mandating electronic claims and clarifying plan-variation funding.

These changes respond to findings of the 2023 Independent Review and the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, aiming to deter misconduct, improve participant safety and ensure scheme integrity.


Summary

The Bill amends the National Disability Insurance Scheme Act 2013 via two Schedules:

  • Schedule 1 – Strengthening the NDIS Commission
    • Creates tiered civil penalty and criminal offence provisions (up to 10,000 penalty units or imprisonment) for false or misleading information, unregistered practice, breaches of registration conditions, Code of Conduct and compliance notices.
    • Defines “serious contravention” and “systematic pattern of conduct” to target aggravated misconduct.
    • Expands investigation and monitoring powers under the Regulatory Powers Act, and authorises evidentiary certificates to streamline court proceedings.
    • Introduces ban­ning orders against a wider class of persons (e.g. auditors, consultants) and a new anti-promotion order to stop misleading advertising of NDIS services.
  • Schedule 2 – NDIA operations and participant safeguards
    • Inserts a 90-day cooling-off period and multiple communication options for participants wishing to withdraw from the Scheme.
    • Empowers the NDIA to require electronic claims from providers, improving accountability and efficiency.
    • Clarifies that plan variations may increase or decrease total funding.

Argument For
Normative Bases
  1. Utilitarian Ground Truth
  2. Non-Discrimination

This Bill should be supported because it meaningfully reduces harm to NDIS participants by equipping the Commission and NDIA with sharper tools to deter, detect and respond to abuse, neglect and exploitation. By introducing graduated penalties and clear definitions of serious misconduct, it targets the worst offenders without unduly penalising trivial errors.

Strengthening the regulator’s information-gathering, monitoring and enforcement powers ensures that unsafe providers are held to account swiftly, thereby elevating the overall quality and safety of services. The new anti-promotion and expanded banning orders protect participants from misleading marketing and unscrupulous intermediaries, addressing key gaps identified by the Royal Commission and Independent Review.

Additional safeguards—such as the 90-day cooling-off period, electronic claims and flexible plan-variation funding—empower participants with clarity and control over their supports. Overall, these reforms promote equity and uphold the rights of people with disability [Judgment].


Argument Against
Normative Bases
  1. Value-Neutral / Epistemic Objection
  2. Propertarianism

Even granting the goal of participant protection, this Bill risks imposing excessive complexity and cost on providers—particularly small and self-managed ones—without clear evidence that tougher penalties will improve outcomes. Increased compliance burdens, higher risk of regulatory action and faster turnaround demands for information may drive some providers out of the market, reducing choice and access for participants [Judgment].

Moreover, layering new administrative requirements (electronic claims, extended data-gathering powers, cooling-off processes) may strain NDIA resources and lead to unintended delays in payments and plan reviews. Without robust evaluation data, it is unclear whether these measures will deliver net benefits or simply create new obstacles for both participants and providers.


Date:

2025-11-26

Chamber:

Senate

Status:

Before Senate

Sponsor:

Unspecified

Portfolio:

Health, Disability and Ageing

Categories:

Discrimination / Human Rights, Consumer Protection, Healthcare

Timeline:
26/11/2025

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