Question Time AU

Bill Debate · Second Reading

National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025; Second Reading

Senate · Tuesday 31 March 2026

Continued from Wednesday 26 November 2025.

Official Hansard for this day (APH) · Read this debate on OpenAustralia

At a glance

The Senate debated the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025, which aims to strengthen regulatory powers, increase penalties for provider misconduct, and introduce anti-promotion orders. The government and the Greens supported the bill, with the government agreeing to amendments on whistleblower protections and participant withdrawal rights. The Coalition supported the bill's intent but moved a second reading amendment highlighting gaps in fraud controls for unregistered providers. One Nation and an Independent senator raised concerns about eligibility criteria and the impact of previous amendments on criminalised individuals. The bill was not passed on the division.

Outcome

The bill was not passed on the division, with 28 votes in favour and 34 against.

Summary in reported speech - not a transcript. AI-generated, so check the official record before quoting.

How the debate unfolded

Continued the debate

Ruston stated that the Coalition supported the bill's intent to protect participants and penalise bad actors, including the introduction of anti-promotion orders and stronger Commission powers. Ruston highlighted concerns regarding the lack of direct fraud controls for the 94 per cent of unregistered providers and cited Australian National Audit Office figures suggesting between six and 10 per cent of payments might be non-compliant or fraudulent. Ruston noted that the Coalition had circulated an amendment to prevent correspondence nominees from withdrawing participants from the scheme against their wishes, which the government agreed to support. Ruston argued that while the bill was a step in the right direction, it did not fully address systemic exploitation or the sustainability challenges posed by rapid growth.

Government response

McAllister affirmed the government's commitment to protecting the NDIS and thanked the disability community for their input. McAllister stated that the bill would give the NDIS Quality and Safeguards Commission proactive regulatory powers and increase penalties to align with work health and safety laws. McAllister refuted claims that the bill ignored unregistered providers, noting that banning orders and penalties apply to both registered and unregistered entities. McAllister confirmed the government's support for amendments regarding whistleblower protections and participant withdrawal rights, while indicating that other amendments would be addressed at the committee stage.

Opposition response

Liddle stated that the Coalition supported the legislation but moved a second reading amendment to note significant shortcomings, particularly the lack of fraud controls for unregistered providers. Liddle cited reports of price quadrupling when participants mention the NDIS and warned that organised crime was targeting the scheme. Liddle moved an amendment to ensure that only participants or plan nominees, not correspondence nominees, could request withdrawal from the scheme. Liddle argued that the bill did not go far enough to protect taxpayer funds or participants from exploitation by unscrupulous providers.

Votes during this debate

Division 1: National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025; Second Reading Not passed 28–34