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Latest NDIS reform updates: what you need to know
Published
Summary
The NDIS Quality and Safeguards Commission is pursuing major NDIS reforms to improve service quality, accountability and participant outcomes. This signals a transformative shift in the National Disability Insurance Scheme’s operations.
The NDIS Quality and Safeguards Commission is on the move, with a bold agenda for NDIS reforms that promises to reshape the way the scheme operates.
Last week, NDIS Minister Bill Shorten announced legislative changes aimed at strengthening the NDIS Commission’s regulatory powers. The NDIS Commission has also rolled out its Regulatory Reform Roadmap to guide the process, with a timeline that extends to December 2025.
Here’s a breakdown of what’s coming:
Table of Contents
Strengthening the NDIS Commission’s Powers
In response to recommendations from the Disability Royal Commission’s Final Report, the government is expanding the powers of the NDIS Commission. These changes are intended to improve participant safeguards, improve the quality of care and hold providers more accountable. The amendments will include:
- Increased financial penalties: Penalties for provider negligence causing participant harm or injury will skyrocket from $400,000 to a maximum of $15 million, aligning with penalties for worker harm.
- Criminal prosecution referrals: The NDIS Commission will gain the authority to refer providers for criminal prosecution in cases of serious registration breaches.
- Enhanced information-gathering abilities: The Commission’s powers to collect data for providers will be expanded.
- Broader banning orders: The Commission can now issue banning orders that extend beyond NDIS roles to include other areas in the disability sector, such as auditing and consulting.
The Roadmap said the exposure draft will be released ‘no earlier than Autumn 2025.’ Based on the roadmap, it looks like consultation on NDIS reforms will begin with discussion papers in November.
Mandatory Registration for Key Provider Types
The government is making it mandatory for Platform Providers, Supported Independent Living (SIL) services and Support Coordinators to register with the NDIS. This is in line with the NDIS Review’s recommendations for registration, with the goal of securing higher standards of safety and quality.
Key Dates
- October 2024 – March 2025: Extensive consultations will take place through surveys, discussion papers, town halls and regulatory forums.
- April – June 2025: Final decisions and transition plans will be developed.
- After 1 July 2025: Mandatory registration begins for these provider types.
Updates to NDIS Act, Rules and Standards
In a media release, Minister Shorten said that the govenmen will introduce a second round of legislative amendments to further strengthen the NDIS Act. As mentioned previously, the NDIS Commission aims to address quality and safeguarding issues identified by the Disability Royal Commission, with a focus on protecting participants’ human rights.
The consultation will begin in October 2024 through discussion papers, roundtables and a draft of the new legislation expected in Autumn 2025.
Reviewing the NDIS Practice Standards
Part of the reforms includes a comprehensive review of the NDIS Practice Standards, including:
- Revising current standards
- Introducing new standards for group living support
- Clarifying the roles of SIL and Specialist Disability Accommodation (SDA) providers.
The roadmap anticipates consultation on these standards beginning from March 2025.
Redefining Providers and Self-Directed Supports
To clarify who qualifies as a ‘disability service provider’, the NDIS Commission is refining its definitions as stated in the NDIS Provider and Worker Registration Taskforce Report. This will distinguish actual service providers from entities simply receiving NDIS funds, like retail outlets.
Additionally, the Taskforce also proposed a registration category for people who self-direct their supports. Self-directed support refers to people who contract all of their supports directly, such as through direct employment, services for one and independent contractors and is distinct from NDIS plan self management.
In an previous press release, Minister Shorten mentioned that the initial consultation will address the definition of self-directed supports for registration purposes.
Timeline
- October 2024: Consultation begins.
- November 2024 – March 2025: Feedback will be gathered through surveys, discussion papers, and community input.
- From July 2025: Results and next steps will be announced.
Get Involved: Public Consultation on NDIS Reforms
The NDIS Commission is inviting everyone affected by these changes to share their thoughts. Public consultations for mandatory registration and legislative updates (Bill No.2) were set to start on 31 October. The Commission has outlined a thoughtful plan for consultation, aiming to balance accountability with the needs of NDIS participants and providers alike. Keep an eye on this space for the latest updates on these changes.
Interested in providing feedback? You can email rii@ndiscommission.gov.au to receive more information.
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