During a late-night Senate hearing, John Dardo, the NDIS head of fraud and integrity, revealed that approximately $2 billion in National Disability Insurance Scheme (NDIS) funds are being misused by unscrupulous providers. These funds, intended to support Australians with disabilities, have been diverted towards drugs, alcohol, holidays, and other inappropriate expenses.
Dardo cited specific instances where participants were misled into spending their NDIS funds on items like a $20,000 holiday and illicit substances, facilitated by providers. He highlighted flaws in the scheme's design allowing organised crime groups to exploit it through fraudulent health reports.
NDIS Minister Bill Shorten acknowledged the issue, attributing the vulnerabilities to administrative shortcomings under previous Coalition governments. He emphasized the government's efforts to address the problem, pointing to 500 ongoing compliance investigations and 20 active court prosecutions. The future cost of the NDIS is projected to rise to $50 billion by 2025/26, necessitating stringent reforms to prevent further financial abuse of the program.