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In a strategic move to tackle exploitative practices by NDIS providers, a newly formed taskforce is set to intensify its focus on businesses that charge excessive prices for services, support, and equipment. This initiative gains renewed significance, particularly in light of the recent AUD 83 million injection by the Australian government into the NDIS.
Comprising representatives from the consumer watchdog and two NDIS agencies, the taskforce aims to address differential pricing, where providers charge NDIS participants higher fees compared to non-participants. Two months ago, NDIS Minister Bill Shorten announced plans to introduce new legislation empowering the NDIS Quality and Safeguards Commission to sanction or ban providers engaged in exploitative practices.
To reinforce these efforts, the federal government is allocating additional resources to the Australian Competition and Consumer Commission, enabling it to identify and take action against providers violating consumer laws. Over the next four years, AUD 6.7 million will be invested to prevent participant exploitation and reduce overall scheme costs.
Shorten emphasized the government’s commitment to curbing unscrupulous practices, stating, “The Australian government is determined to block and stop unscrupulous providers exploiting NDIS participants to safeguard NDIS funding and protect participants.”
Christian Astourian, an NDIS participant, highlighted the impact of such practices on individuals. He shared an incident where he was quoted over $800 to fix a loose bolt on his wheelchair, contrasting it with the local panel beater who addressed the issue for free.
Astourian also revealed a significant price discrepancy for a remote control replacement, with NDIS participants charged $350 compared to $120 for non-participants.
The crackdown on dubious providers aligns with the government’s broader strategy to manage the escalating costs of the NDIS. Prime Minister Anthony Albanese acknowledged the unsustainable trajectory of the scheme’s projected cost, expected to surpass $100 billion annually within a decade.
An independent NDIS review released two months ago recommended enhanced market monitoring and mandatory registration of all providers to ensure transparency and value for money.