Shocking revelations about the misuse of $2 billion from the National Disability Insurance Scheme (NDIS) have ignited a political firestorm, with opposition leaders demanding urgent reforms to the “out of control” program.
NDIS Head of Fraud and Integrity, John Dardo, disclosed that approximately five per cent of the scheme’s $45 billion budget had been misappropriated.
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Mr Dardo said funds were spent on luxury items, such as $20,000 holidays and a $73,000 car.
He also confirmed expenditures on illicit drugs and alcohol.
“There would be thousands of cases where participants are claiming things that are not consistent with their plan,” Mr Dardo said.
The revelations have put significant pressure on the government to tighten regulations.
During a heated Question Time, NDIS Minister Bill Shorten acknowledged the scheme’s issues but blamed the previous Coalition government for its failures.
“I agree that there are issues in terms of fraud in the scheme, but these issues of fraud did not start yesterday,” Mr Shorten said.
The Albanese government recently announced an $83.9 million investment to combat fraud within the NDIS, focusing on enhancing IT systems and developing a new fraud case management system.
Federal Health Minister Mark Butler also expressed deep concern over revelations of extensive fraud within the NDIS.
“This is a terrific scheme that’s providing support to people with disability that simply wasn’t there more than 10years ago, but we know there’s simply too much waste,” Mr Butler said.
“There are too many rorts. There’s certainly too many dodgy providers.”
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