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The federal government is trying to rein in billions of dollars’ worth of spending in the National Disability Insurance Scheme by cracking down on dodgy operators. Analysis by the agency that runs the scheme, the NDIA, has found that nearly 40 per cent of audited providers are charging for alternative therapies that are otherwise banned from receiving NDIS funding.

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00:01In late 2024, strict lists were introduced by the agency that runs the NDIS, the NDIA,
00:09and those lists dictated what could and could not be funded by NDIS money.
00:17Now, it has found that an analysis or an audit of multiple providers done by the agency,
00:24the NDIA, has found that about 40% of providers continued to charge for some of the banned
00:31therapies, for example, animal therapy, recreational activities like personal training and also golf
00:37lessons, including one provider that actually made around a million dollars by charging inflated
00:42prices for these particular therapies. Now, they were able to do this through charging under a line
00:49item known as other professional. And that is a line item that is set aside where people providing
00:56services need to prove, A, that there is an evidence base for the therapy they are delivering,
01:02and B, that they are delivering that therapy based on specific qualifications. And so the
01:09government has looked at that now. And one of the measures it has introduced is, for example,
01:15previously under that other professional category, uh, providers could charge $193 an hour. That has
01:24been reduced now to $156. So, Naz, how is the government going about tackling this loophole?
01:31Well, it's basically saying it is going to strengthen the regulations, increase oversight over these
01:37providers, uh, and really by changing the, um, charges as well and ensuring that, um, the things that are
01:45banned on that list, uh, for example, the animal therapy or the recreational therapies, um, that it, it says
01:53that particularly don't have an evidence base, um, simply cannot be claimed.
01:58Naz, there's also a Senate hearing taking place today, looking at a draft legislation making way for
02:03billions of dollars worth of cuts to the NDIS. Tell us more about that. What's it's expected to hear?
02:09Yeah, look, fraud is just one portion of, uh, savings that the NDIS is trying, um, to, uh, identify
02:17as a way to find around more than $30 billion worth of savings over the next four years. Fraud is
02:23a portion
02:24of that. Um, there is legislation that is being looked at at the moment through a Senate inquiry.
02:30Dozens of people have given evidence over the last two days. More than 4,000 written submissions
02:36have been submitted about this draft legislation. And this legislation, if and when it gets up, will
02:43really pave the way for the government to be able to make that more than $30 billion worth of savings
02:49over the next four years. Some of the amendments include increasing the, uh, expectation on the role of
02:55parents as carers, um, increasing powers to the minister. Uh, and we are set to hear more evidence
03:02today from academics and also the health services union, uh, as to what they think about the draft
03:08legislation.
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