Organised crime gangs are systematically defrauding the National Disability Insurance Scheme by colluding with or manipulating participants and recycling the proceeds into illegal activities, top law enforcement officers have told a Senate inquiry into Labor’s overhaul of the runaway scheme.
Australian Criminal Intelligence Commission executive Adam Meyer said crime syndicates had set up dedicated fraud networks targeting NDIS participants who were, in some cases, tricked or threatened with violence if they did not help them set up fake claims.
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Labor will reduce disability supports, tighten assessments and remove up to 240,000 participants from the scheme under a range of measures designed to save $38 billion over four years. The committee heard concerns about future NDIS applicants needing to exhaust all appropriate treatment options before qualifying to join the scheme.
“You are creating the wrong sorts of incentives,” said Mitchell Skipsey, a solicitor at the Justice and Equity Centre, which represents NDIS participants. “You are encouraging people to get treatment after treatment. People who are financially disadvantaged will find themselves in a position where they are barred from the scheme.”
