Last week, the government introduced the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025 to Parliament. The bill has now been referred to the Senate Community Affairs Legislation Committee for review, with the Committee scheduled to report back in March 2026.
The bill proposes reforms to strengthen the integrity of the Scheme, enhance participant safety, and improve regulatory oversight.
Key amendments being proposed include:
Tougher penalties for misconduct and unsafe practices: The Bill introduces a tiered penalty framework whereby serious contraventions could attract civil penalties in the order of “tens of millions” for corporations (10,000 penalty units, which translates to over A$15 million) for serious misconduct.
Criminal offences & jail time for certain breaches: For example, unregistered providers operating when registration is required may face criminal penalties – especially in regulated support areas (e.g. specialist disability accommodation).
Expanded enforcement/regulatory powers for the NDIS Quality and Safeguards Commission (the Commission): This includes broader “banning order” powers to exclude unsuitable persons – not just providers, but also auditors, consultants or others involved in service delivery or support.
- Example: Proposed changes would stop an NDIS auditing firm who offers consultancy services to the same provider it is scheduled to audit.
- Warning: Organisations must ensure their auditor is not also their consultant. If they are, they are at regulatory risk under the proposed laws.
“Anti-promotion orders”: The Bill gives the Commission power to restrict providers from marketing or promoting services or supports that undermine the integrity or objects of the NDIS.
- Example: Proposed changes will seek to stop misleading claims about what supports are fundable, or advertising SDA apartments as “guaranteed 15–20% returns,” or claims that “participants will definitely fill these vacancies,” or that the NDIS “will pay for everything.”
- Proposed changes intend to go further to stop consultancy firms claiming, “Guaranteed NDIS registration in 7 days!”, or “We have inside NDIA contacts, and we can fast-track your registration approval.”
- No consultant can guarantee registration; only the Commission can approve it. Any organisation seeing these claims should treat them as red flags and avoid engaging with such consultants. Warning – The proposed changes will also aim to stop organisations from participating in or repeating such marketing and claims. Violations would carry significant penalties.
In addition, the proposed amendments include:
- Modernisation of NDIS claims process: Proposed mandated electronic claim forms to help prevent fraud and misuse of the system.
- *Prepare* Do your current internal systems allow for such changes?
- Changes to participant withdrawal process: For participants wishing to leave the Scheme, the Bill introduces additional safeguards – notably a 90-day “cooling-off” period for withdrawals (after notification) to ensure participants do not exit impulsively or under pressure.
- *Prepare* Do you need to review your service delivery model to enable this cooling off period?
- Administrative and documentation changes: The Bill updates various sections of the NDIS Act (e.g. sections governing funding management, reassessment and variation of plans, definitions of supports, scheme exit / withdrawal). In short, the 2025 Bill significantly raises the bar for compliance, accountability and provider behaviour – extending beyond just “what supports can be funded” to “who can deliver supports, under what terms, and how they are paid and managed.”
- *Prepare* Will these changes impact on your policies and procedures?
Practical Takeaway
Disability providers should treat the changes as “pending, but probable.” Preparing in advance by reviewing policies, compliance procedures, marketing, and registration status. Once the Bill becomes law, the changes will apply quickly (within 1–4 weeks of Royal Assent).
Access Support & Guidance
At Amplify Alliance, we will continue to advocate for simplified requirements and reduced compliance costs. If members have any queries or would like to provide feedback, please contact Bryan McCormick (Head of Government Relations & Policy) via phone 0419 336 618 or email BMcCormick@amplifyalliance.org.au
Amplify Alliance represents the largest network of Not For Profit organisations delivering and supporting human and social services in Australia. Our work is centred on the key determinants of wellbeing: Jobs, Home, Learning, Health, Social Connection and Social Justice.
