This Q&A document will be updated with questions and themes raised at the Town Hall meeting on 27 November 2024.
About regulatory reform
What is regulatory reform?
Regulatory reform means improvements to the quality of government regulation. We are changing the NDIS to make it better for everyone. To do this, we want to hear your thoughts and opinions on the changes we are making.
How can I have a say about the reforms?
We want to hear your thoughts and opinions on the changes we are making.
You can engage in a variety of different ways, including:
• making a submission
• completing a survey on our website
• attending an online or in person consultation session.
We welcome your feedback on how we can do better.
Why are we doing regulatory reform?
The Government is working to improve the NDIS for participants, providers and workers.
There has been an NDIS Review and Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability (Disability Royal Commission). Participants, their families, the sector, providers and workers shared stories, evidence and experiences. These informed recommendations for the NDIS Commission to have:
• a more active approach to monitoring, and
• a stronger approach to compliance and enforcement.
NDIS Act (Bill No. 2) proposed quality and safeguard amendments
What are the proposed legislative reforms?
There are 10 measures proposed for inclusion in Bill No. 2. The focus is keeping participants safe. They do this by giving the NDIS Commission stronger compliance and enforcement powers.
The measures cover three key areas:
- Penalty framework and statutory requirements (5 measures). These ensure a framework for penalties and offences is fit for purpose and has a deterrence effect.
- Safeguarding (1 measure). This expands categories of people who can get a banning order. This ensures unsuitable people can be excluded from the NDIS.
- Information gathering (4 measures). These strengthen powers to get relevant information from NDIS providers and others.
Why does the legislation need to change?
The Disability Royal Commission’s final report highlighted quality and safeguarding challenges that still exist for people with disability.
The measures will improve the NDIS Commission’s ability to keep participants safe by:
- deterring providers and workers from fraudulent and negligent actions, and
- simplifying NDIS Commission operations for more effective regulatory functions and activities.
How are you consulting about these changes?
Consultation on the proposed changes in Bill No. 2 has started and will finish by the end of 2024.
We will listen to the views of many different groups through:
- public consultation (open now until 20 December 2024)
- consultation with States and Territories (from November-December 2024)
- exposure draft publication (following consultation). The release of the exposure draft will be a decision of Government.
The consultation paper is available in standard and Easy English.
Download it on the NDIS Commission website.
We welcome submissions in a format that suits you. Contact us if you would like help providing a submission or completing the survey.
During this time we will listen to the views of many different groups through activities including:
- Public consultation: Open now – 20 December 2024 (submissions on consultation paper close).
- Consultation with States and Territories: November – December 2024.
- Exposure draft publication (following consultation): The release of the exposure draft will be a decision of Government.
We are committed to accessible approaches to consultation and welcome submissions in a format that suits you. Please contact us if we can provide you with assistance in providing a submission or completing the survey.
What will the NDIS Commission do with its additional compliance powers?
Effective compliance and enforcement activity is critical to the NDIS Commission's regulatory role. Extra regulatory powers ensure the NDIS Commission can:
- take strong action to reduce and prevent violence, abuse and neglect of people with disability
- drive improvement in provider practice, and
- exit bad actors from the market.
The NDIS market has evolved since the introduction of the NDIS Act. The NDIS Commission needs stronger compliance and enforcement powers to achieve its aim.
The proposed measures aim to increase the NDIS Commission’s regulatory capability to:
- exercise its monitoring, compliance and enforcement functions in relation to NDIS providers
- respond to quality and safeguards issues with stronger compliance and enforcement activities, and
- help reduce inappropriate spending of NDIS funding and support scheme sustainability.
Will these measures increase the regulatory burden on NDIS providers impacting services to participants?
The proposed measures are not intended or expected to:
- create extra regulatory requirements for providers. Some measures will clarify requirements for NDIS providers
- negatively impact the provision of services to NDIS participants.
What is the impact on participants?
All people with disability will benefit from better quality and safeguarding of disability services.
NDIS participants with higher safeguarding risks will benefit from a stronger penalties framework. The Framework will be a deterrent against violence, abuse, neglect and exploitation.
People will also be more likely to raise concerns with the NDIS Commission if they are confident it can and will take appropriate action.
What is the impact on providers?
The NDIS Commission regulates the whole NDIS market. This includes both registered and unregistered providers.
The proposed changes impose extra requirements on registered and unregistered NDIS providers. These focus on obligations to respond to requests for information and documents. The requirements will only apply when there is concern about the NDIS provider’s compliance with the NDIS Act.
Registered NDIS providers will also be required to hold information within Australia. This is a standard requirement for many Government-funded services.
Proposed new criminal offences, civil penalties and statutory duties apply to registered and unregistered providers.
We will consider transition periods for providers in the consultation process. These will allow time to meet new requirements.
What is the impact on the disability sector?
The disability sector will benefit from clear, proportionate and responsive action to breaches of the NDIS Act and NDIS Rules.
The changes will also increase awareness of regulatory requirements and compliance actions available. This is expected to drive continuous improvement in the quality of NDIS supports and services.
Do these measures align with the recommendations of the Disability Royal Commission and the NDIS Review?
The NDIS Review and Disability Royal Commission highlighted a need for:
- stronger safeguards to protect the rights and wellbeing of participants, and
- swift and appropriate responses to issues.
The Disability Royal Commission recommended stronger monitoring, compliance and enforcement powers for the NDIS Commission (Recommendation 10.25). This relates to NDIS providers that have:
- a history of non-compliance, or repeatedly fail to meet their obligations to provide safe and quality services
- have demonstrated a disregard for the safety of people with disability, and
- have caused serious harm to a person or people with disability.
The NDIS Review recommended the NDIS Commission should have the resources, powers and capability to proactively and effectively regulate the disability supports market (Action 19.3).
When will other recommendations from the NDIS Review and Disability Royal Commission (not addressed in the NDIS Amendments ‘Getting it Back on Track’ legislation) be addressed?
The Australian Government is considering the NDIS Review recommendations. It is consulting with State and Territory Governments and will release a full response later this year.
The Australian Government released its response to the Final Report of the Disability Royal Commission in July 2024.
Learn more: Department of Social Services.
Mandatory Registration of Platform Providers, Supported Independent Living and Support Coordination
What is a registered NDIS provider?
A registered NDIS provider has:
- applied for registration with the NDIS Commission
- been audited against the relevant NDIS Practice Standards and assessed as meeting them
- undergone a suitability assessment by the NDIS Commission (both the provider and its key personnel), and
- been issued a certificate of registration.
I get support coordination / supported independent living from an unregistered provider, or access supports through an unregistered platform provider. How will mandatory registration affect me?
The following providers will need to register with the NDIS Commission no earlier than 1 July 2025:
- unregistered support coordination and supported independent living providers,
- unregistered platform providers who want to deliver NDIS funded services to NDIS participants.
If the provider does not get registered by the end of the transition period, they cannot deliver NDIS funded services or supports. Participants will need to find a registered NDIS provider if they want to use their NDIS funding for these types of services and support.
Learn more: Provider registration.
Do these measures align with the NDIS Review and NDIS Provider and Worker Registration Taskforce?
- The NDIS Review recommended a graduated, risk-proportionate framework.
- The NDIS Provider and Worker Registration Taskforce was established in February 2024 to advise the Government on a new registration model.
- The Taskforce made 11 recommendations and 10 implementation actions. These include immediate actions and longer-term strategies developed through consultation.
- The Taskforce recommended significant changes to provider registration.
- As an immediate response to the Taskforce’s advice, the Government announced that platform providers, support coordinators, and Supported Independent Living (SIL) providers will be required to be registered to enhance safeguards for NDIS participants.
Platform providers: How are you consulting about these changes?
- Step 1: Consultation paper published. Submissions open. Online survey on Platform Providers available.
- Step 2: Platform Provider Industry Group and focus groups with people with disabilities.
- Step 3: Online surveys and submissions close by March 2025. Insights report on consultation available.
- Step 4: Start to transition providers to registration by no earlier than 1 July 2025.
SIL and support coordination: How are you consulting about these changes?
- Step 1: Consultation paper published late November. Submissions open. Online survey on SIL and support coordination available.
- Step 2: From early 2025, the NDIS Commission will consult on these proposed changes through targeted consultations.
- Step 3: Online surveys and submissions close by March 2025. Insights report on consultation available.
- Step 4: Start to transition providers to registration by no earlier than 1 July 2025.