NDIS Providers Accused of Exploiting Vulnerable Australians in the Outback
Vulnerable people living with disabilities in remote Northern Territory communities are reportedly being coerced into switching NDIS providers – or signing up in the first place – with offers of cash, food, phones, and other valuables. Once enrolled, their NDIS plans are allegedly drained of funds, leaving them without the promised support and isolated.
These claims are detailed in a new report by disability advocate groups and the Darwin Community Legal Service, which alleges unscrupulous NDIS providers are targeting people across the Northern Territory. “People are being promised phones or KFC to change providers. It’s happening every week,” one anonymous disability advocate in Katherine told researchers.
The situation is particularly acute for Indigenous Australians, who experience disability at nearly twice the rate of non-Aboriginal people and comprise 51 percent of all NDIS participants in the Northern Territory. Many live in remote communities where social disadvantage, limited services, and language barriers increase their vulnerability to exploitation.
Misrepresentation and Rapidly Drained Funds
The report alleges that some providers are misrepresenting themselves, claiming to work directly for the NDIS or the National Financial Planner, a well-established organization offering disability support and life insurance. Representatives have reportedly approached individuals in hospitals, dialysis wards, and even in carparks, seeking to sign them up for services.
Once a service agreement is signed, providers can begin drawing funds from a participant’s NDIS plan. Advocates say “over servicing” is a common tactic, rapidly depleting funds and leaving participants unable to afford ongoing care. “Plans that should last a year are being drained in two months. Then people have nothing left and no way to pay for help,” said an anonymous service provider in Tennant Creek.
Cases of Coercion and Manipulation
The report details specific instances of alleged exploitation. One case involves a 36-year-old non-verbal Aboriginal man with an acquired brain injury. When his regular provider arrived for a scheduled visit, another provider was already at the home, claiming the participant had independently engaged their services. An investigation revealed the new provider had allocated 35 hours of support per week, despite the participant’s approved NDIS plan allowing for only seven.
The new provider also allegedly took possession of the participant’s personal bank cards, Centrelink details, and identification.
Another complaint details an alleged attempt to coerce a participant’s sister into transferring her care to a different organization, offering a $5,000 payment and a car. The sister then allegedly attempted to move the participant from a stable home to a new facility. Despite the participant’s objections, a cognitive assessment was arranged, resulting in a conclusion that the participant had reduced decision-making capacity. A report was submitted seeking to appoint the sister as the participant’s guardian, effectively overriding their autonomy.
“It’s not just the inducement; it’s the manipulation of relationships,” said an anonymous disability advocate in Alice Springs. “People are being convinced by family and providers to take actions that strip participants of their independence.”
Advocates also report that many potential participants are unaware that those offering services are private businesses, believing anyone using the NDIS name must be an official representative.
Calls for Increased Oversight
Advocates and providers across the Northern Territory are reportedly losing faith in the NDIS complaints process. The NDIS Quality and Safeguards Commission, responsible for regulating providers, “rarely follows up on serious complaints,” according to the report.
“It’s quite concerning that these providers, who are repeat offenders, continue to operate without any sanction at all,” Scott Richardson, a disability advocate based in Alice Springs, told the Australian Broadcasting Corporation.
A spokesperson for the NDIS Quality and Safeguards Commission stated that the commission is increasing “compliance and enforcement efforts in the Northern Territory” and will “continue to strengthen oversight…to ensure people with disability are treated with dignity, safety and respect.”
The ABC reported on that disability workers are witnessing aggressive recruitment tactics and the rapid draining of funds from NDIS plans, amid an influx of new providers into the outback NT market.
