The Australian government is intensifying its efforts to combat fraud within both the National Disability Insurance Scheme (NDIS) and the Department of Veterans’ Affairs (DVA), acknowledging that schemes designed to support vulnerable populations are increasingly targeted by unscrupulous individuals and organizations. A new $203 million investment will focus on bolstering integrity measures within the DVA, mirroring reforms implemented in the NDIS in 2024.
The crackdown comes as evidence mounts that fraudulent activity is not confined to a single program. Officials have observed a pattern of individuals and entities previously involved in NDIS fraud attempting to exploit the veterans’ compensation system. This has prompted a proactive response to prevent similar abuses from taking root.
Veterans Affairs Minister Matt Keogh stated that the increased funding will be used for stricter auditing of medical reports, aiming to identify and disqualify doctors and allied health professionals who are submitting false claims or billing for services not rendered. “They’re saying they are providing a service to someone and not providing it, or they are billing for services that are different to the types of service that are actually provided, or they are doubling up on claims,” Keogh explained. He emphasized the government’s commitment to protecting funds intended for those who have served.
Recent cases highlight the scale of the problem. In Perth, a woman running an occupational therapy business is accused of submitting over $7 million in fraudulent treatment claims to the DVA over several years. This follows similar instances of fraudulent activity within the NDIS, where false reports were filed and participants were overcharged for services, or billed for services never received. The government’s response in the NDIS, which included tightening approved activities and improving fraud detection, has seemingly prompted some actors to seek opportunities elsewhere.
The Australian Criminal Intelligence Commission has warned that the “footprints” of fraudulent NDIS providers are now appearing in other payment programs, reinforcing the need for a coordinated and comprehensive approach to fraud prevention. Minister Keogh acknowledged that the increased investment in speeding up veteran claims processing may have inadvertently attracted fraudulent actors, stating, “If people who have been trying to play systems in the NDIS or in other schemes the Commonwealth operates, they will not be able to do that in the DVA.”
Beyond addressing fraudulent medical claims, the government is also focusing on the growing issue of predatory advocacy services. A recent inquiry revealed that some advocates are charging veterans exorbitant commission-based fees – as high as 29 percent – on their compensation payments, effectively taking a significant portion of funds intended to support veterans for life. These services have emerged as a “cottage industry” in recent years, capitalizing on the increased funding available through the DVA.
Traditionally, veteran advocacy was provided free of charge by organizations like the Returned Services League (RSL). However, the rise of for-profit advocates, who are largely unregulated, has raised concerns about exploitation and undue influence. The Department of Veterans’ Affairs has noted that claims are becoming more complex, in part due to these advocates exaggerating claims to maximize their profits. The RSL has called for a ban on fee-for-service advocates.
The number of veteran claims has risen sharply in recent years, exceeding 100,000 annually. Last year, claims submitted by commission-based providers doubled, now accounting for one in five of all claims. Minister Keogh has announced plans to consult on reforms to protect veterans from these predatory practices, signaling a commitment to ensuring that advocacy services prioritize the needs of veterans rather than profit.
The government’s response reflects a broader recognition that robust integrity measures are essential to safeguarding the long-term sustainability of social support programs. By addressing fraud and exploitation, officials aim to ensure that resources are directed to those who genuinely need them, and that the sacrifices of veterans are appropriately honored.
The crackdown on NDIS fraud, which began in with a nationwide sweep recovering millions of dollars, serves as a model for the DVA’s new initiative. The Fraud Fusion Taskforce, a coalition of 11 agencies, has been instrumental in uncovering fraudulent schemes and bringing perpetrators to justice. The government has repeatedly emphasized its determination to hold offenders accountable, warning that those who attempt to defraud the system will face severe consequences.
Minister Shorten previously stated, “These are very serious cases involving millions of dollars of money meant for people with disability.” He added, “Our warning for crooks remains firmer than ever. If you think you can take money from the pockets of the Australians who need it the most, you’d better think again as we will be watching.”
The reforms aim to create a more secure and equitable system for both NDIS participants and veterans, ensuring that vital support services reach those who are most deserving.
