Why Stronger NDIS Penalties Alone Won’t Fix Provider Accountability

The Australian government has announced some of the toughest penalties in the history of the National Disability Insurance Scheme (NDIS), including fines of up to $16.5 million and potential jail time for serious breaches. These reforms aim to address fraud, neglect, violence, and misuse of participant funds. However, their impact is limited by a major structural problem: around 94 per cent of NDIS providers remain unregistered and therefore fall outside formal regulatory oversight.

More than 273,000 providers currently operate within the scheme, with the vast majority effectively invisible to the NDIS Quality and Safeguards Commission. While registered providers are monitored and held to clear standards, unregistered operators are not subject to the same training, reporting, or compliance requirements. This lack of visibility means enforcement often occurs only after harm has already happened.

The reliance on unregistered providers has grown due to participant choice, workforce shortages, and the perceived flexibility and lower costs of unregistered services. However, this comes at the expense of safety and accountability, particularly for participants with complex needs. Experts warn that many of the most serious cases of fraud and financial abuse occur in the unregistered sector.

While stronger penalties signal intent, critics argue that meaningful reform requires addressing registration loopholes. Without bringing more providers into the regulated system, enforcement measures risk being symbolic rather than transformative, leaving participant safety and trust in the scheme at risk.

HelloCare Editorial Team. (2025, November 26). NDIS crackdown falls short as 94 per cent of providers remain unregistered. HelloCare. https://hellocare.com.au/ndis-crackdown-falls-short-ss-94-per-cent-of-providers-remain-unregistered