During recent Estimates, NDIS Integrity Chief, Mr. John Dardo, stated that 90% of plan managers showed significant signs of fraud, and 87% of service providers were unregistered and unmonitored, lacking adequate training for their responsibilities. Mr Dardo said, “we have no idea what they do when putting in their invoices.” This underscores the broken state of the NDIS, stemming from an ill-considered election promise devoid of data, reminiscent of the Gillard government’s hasty policy announcements without sufficient planning.
I proposed that an inquiry should evaluate the merits of returning responsibility for these services back to the states from which they originated. I pointed out that an unintended consequence has been a shortage of workers in the health and aged care sectors due to the excessively high pay NDIS service providers receive—often triple what they would earn in equivalent roles within these sectors.
Labor’s penchant for wasteful spending was exemplified by the squandering of $430 million on “the Voice,” funds that could have been more effectively allocated to NDIS services.
Ultimately, taxpayers foot the bill for this waste. I advocate for a shift away from the costly and ineffective centralised service model towards competitive federalism.
Transcript
At the recent Senate estimates hearings, the NDIS integrity chief, Mr John Dardo, admirably confirmed that 90 per cent of plan managers displayed significant indicators of fraud. The level of fraud it is now so high that there are dozens of examples of organised crime groups abusing the systems, with millions of dollars being rorted. The system is so out of control that 87 per cent of service providers are unregistered and unmonitored. I quote words that appeared in an article about Mr Dardo:
We have no idea of knowing what they do when they put in their invoices.
It’s taxpayers’ money, spent on something they have no idea of. He had the courage to admit that. He said that existing cases exceeded Australia’s judicial capacity, without finding more.
NDIS funds must not be used to pay for sex workers, expensive holidays or new cars that other taxpayers cannot afford. Projections are for a blowout of NDIS spending to $90 billion within a decade; it must be prevented. Using the system to peddle drugs is happening extensively. The name of this bill says what we already know about the NDIS. It’s broken and getting worse. It’s a licence for criminals and fraudsters to print money. It’s so far off track that the hope that this bill will get things back on track is a pigs-can-fly pipedream.
Since the Gillard Labor government’s NDIS inception, there has never been a track. It was hatched with no meaningful metrics or plan. It was simply an election slogan to desperately buy votes in an election that Prime Minister Gillard lost. It was hatched as a headline grabber and a vote harvester. Typical of ‘uniparty’ initiatives—and of policies and legislation in our parliament over recent decades—it lacks the discipline of a system based on hard data and a focus on customer needs. It was done to look good, not to do good. A hastily cobbled together election policy, it had holes in it a mile wide that clearly enabled fraudulent claims to be made with little chance of being picked up and stopped.
As servants to the people of Queensland and Australia, Senator Pauline Hanson and I have been calling out the NDIS fraud model since 2016. A significant effort is now needed to remove dodgy plan managers and service providers and to protect capable and honest plan managers and providers, using stricter laws to prevent participants from being defrauded, to prevent unscrupulous service providers from abusing vulnerable people and to save NDIS for genuinely disabled people with real needs. If we really care, we’ll clean up this mess. If we really care for disabled people, then we’ll have to get tough and sort out the criminals and the rorters. Providers, managers and recipients who commit fraud under this NDIS scheme must be heavily penalised and banned from any involvement in the scheme again. Wasted money through overspending has cost taxpayers well in excess of $8 billion already, and it’s essential to ensure that the current 150,000 unregistered care or service providers become registered and then are monitored for effective compliance.
The Gillard Labor government introduced the NDIS. In their election loss, they handed the incoming coalition government an illegitimate, loose and sloppy mishmash of slogans and empty titles, lacking discipline, coherence, focus and care, and lacking solid systems. If they’d cared, Labor would have put together a proper system, but they didn’t. They should have put together a system to provide effective care and to protect taxpayers’ hard-earned money. The Liberal and National parties tried to refine the monster, and now the NDIS is back in Labor hands for more mismanagement. The NDIS must be reconsidered and protections against mismanagement and abuse strengthened.
But who should be responsible for management? References to the non-constitutional National Cabinet are just a poor joke. National Cabinet is a mere grouping of state ministers responsible for similar portfolios, with no statutory authority or constitutional recognition of its existence or authority. It’s toothless—all mouth and no accountability. There’s no accountability in the current system. Right at the very top there’s the bogus unconstitutional National Cabinet. In such cabinets the state and federal government ministers just go, ‘They’re responsible.’ That means no-one is responsible. There is no accountability. It’s fundamentally structurally flawed.
I suggest an inquiry to consider the alternative model: putting the responsibility for providing for the needs of people living with a disability back to the states and territories, where it was stolen from. Clearly, each state is responsible. The states would work to ensure that services were monitored, reasonable and meeting client needs under a model reflecting the proven benefits of competitive federalism, the foundation under which our Constitution and government is made. This will provide the level of accountability that has been missing to date. Centralising doesn’t work; decentralising closer to the surface does. One of the unintended consequences of Labor’s mismanagement of NDIS funds is the shortage of aged-care and healthcare workers who migrated to work in the lucrative NDIS model. This is because NDIS wages are so overinflated that a worker can receive three times the rate of pay for the same work done in other sectors. This is not just hurting the NDIS. This rorting, mismanagement and waste of taxpayer funds is hurting aged-care and healthcare workers.
Labor wastes money in other areas, too. Look at the wasted $430 million plus that the doomed referendum cost Australians—just like the Gillard government’s NDIS facade, which was based on slogans and empty promises lacking substance. Just think how that $430 million could have been spent directly to improve the lives of remote Australians living in need or spent on improving NDIS services and security for people who are disabled in some way. Then there are the follies of government cutbacks, such as when psychological services were cut from 20 appointments to a relatively useless 10 appointments for needy participants. Just think about what could have been supported with the wasted money—health, education and child protection are a few. Frontline staff are in short supply now, partly because of poor pay, inadequate training and lack of support and partly because of NDIS rorts and sloppiness. Many NDIS carers and support staff have little or no training in basic personal caring skills. Many recipients have physical health needs and their carers should have sound skills in lifting, mobility, feeding, toileting and showering. Expecting NDIS carers to do these things with no, or inadequate, training is unfair and dangerous for the recipient and the carer.
I have described a support system in crisis. This bill tinkers around the edges. As it is, this bill will not make significant positive differences, and who pays for all of this waste? Always, it’s we the people. Instead of tinkering around the edges of a broken system, do the work! I call on the government to do the work to define disabled people’s needs for service and taxpayers’ needs for protection. Instead of the ubiquitous fraud under low levels of accountability, consider returning to the original system of state governance. One Nation knows what history repeatedly proves: administration and services are of higher quality when services are closer to recipients. That enables understanding of needs, which is core to effective service. Replacing centralisation with competitive federalism provides a marketplace in governance. That’s what we all want. That’s what we need because improved governance provides accountability, effective service and better care.
Everything that Labor does and create’s turns to sh#t .