Breaking: The NDIS Commission's reform agenda- major changes ahead!

The NDIS Commission is having a big news week. On Monday, NDIS Minister Bill Shorten announced the government is pursuing legislative changes to increase the regulator's powers. This was followed by the NDIS Commission releasing a Regulatory Reform Roadmap. Jess and Sara help you wrap your head around what's changing and when.

By Jessica Quilty and Sara Gingold

Updated 29 Oct 202430 Oct 20248 min read

NDIS Minister Bill Shorten announced a new round of NDIS legislative changes on Monday. We can’t say they are not keeping us on our toes! The new amendments will focus on increasing the powers of the NDIS Quality and Safeguards Commission (the NDIS Commission) following recommendations from the Disability Royal Commission. 

The NDIS Commission has also released its Regulatory Reform Roadmap, which shows the timeline for activities planned to support the Commission’s reform priorities until December 2025. This includes mandatory registration of Supported Independent Living (SIL) services, Platform Providers and Support Coordinators following recommendations for universal registration from the NDIS Review. With so much unexpected change being thrust on participants and providers lately, it is a welcome change to see a purple plan. 

Click here to listen to the Roadmap on the NDIS Commission's website.

Mandatory Registration for Platform Providers, Supported Independent Living (SIL) Services and Support Coordinators

The NDIS Provider and Worker Registration tasked with advising the government on the design and implementation of a new registration system made 11 recommendations and 10 implementation actions on provider and worker registration. Some of these required an immediate response and others are going to be designed through consultation with the disability community. As an immediate response, Minister Shorten recently announced that all Platform Providers, SIL Services and Support Coordinators will need to register to strengthen safeguards for NDIS participants. This will require Rule changes and be phased in some time after 1 July 2025.

Timeline:

October 2024 - March 2025: The NDIS Commission will be undertaking extensive consultation including circulating discussion papers, conducting surveys, town halls and regulatory forums to inform the mandatory registration of these providers.

April 2025 – June 2025: Decisions and transition plans will be established.

No earlier than 1 July 2025: Platform providers, SIL providers and support coordinators will commence transition into mandatory registration.

NDIS Act, Rules and Standards

Yesterday, Minister Shorten announced in a media release that the government will be making a second round of changes to the NDIS legislation. These amendments will be focused on strengthening the powers of the NDIS Commission. 

The government hasn’t publicly released a draft of the new legislation yet. According to yesterday’s media release, the plan is to put out an exposure draft for consultation before tabling it in parliament. Looks like we won’t get a repeat of the first round of amendments to the NDIS Act, where it was a case of ‘Surprise! We just tabled legislation in parliament! Bet you didn’t see that coming!

The NDIS Commission says these changes are occurring because the Disability Royal Commission’s Final Report highlighted the ongoing quality and safeguarding issues in the NDIS market. Therefore, this legislation is aimed at increasing the Commission’s powers to regulate the market, remove bad actors, increase safeguards and defend people with disability’s human rights. 

The media release gives us a bit of an idea about what we can expect with the new legislation. However, keep in mind a major caveat- until we see the draft, we can’t know exactly what’s in it. Nevertheless, some of the promised changes include:

  • Increased financial penalties if a participant is hurt or injured in a provider’s care: the maximum penalty will increase from $400,000 to $15m. This brings the penalty for harm to a participant in line with the penalty for harm to a worker. 
  • Power to refer for criminal prosecution: the NDIS Commission will have the power to refer providers for criminal prosecution. The media release says that, as an example, this might occur if there is a serious breach of a provider’s registration conditions. 
  • Increased information gathering powers: the NDIS Commission will be given more powers to gather information to monitor NDIS providers ‘and others.’ But there is no hint what these powers will look like. 
  • Expand the scope of banning orders: the legislation will increase the scope of the NDIS Commission’s banning orders to enable them to ban individuals from working in other roles in the disability sector, including auditing and consulting. Curiously, the last bout of legislative changes already gave them the power to ban people from working as NDIS auditors. But the consulting aspect is new, and they might add other roles as well. 

The Roadmap said the exposure draft will be released ‘no earlier than Autumn 2025.’ According to the Roadmap, it looks like consultation will begin with discussion papers in November. 

Another key part of the NDIS Commission’s reforms will include reviewing the NDIS Practice Standards. This includes: 

  • Reviewing existing NDIS Practice Standards.
  • New NDIS Practice Standards where supports are shared in a group living arrangement.
  • The practical and legal separation of SIL and Specialist Disability Accommodation (SDA). 

Timeline:

From October 2024: Consultation on the new Bill will commence. 

From November 2024: Ministerial roundtables, discussion papers and state and territory consultation will commence. 

From March 2025: Consultation will commence to review and revise the NDIS rules Practice Standards. 

No earlier than “Autumn 2025” (AKA after March 2025?): An exposure draft will be circulated. 

No earlier than March 2025: Proposed NDIS Bill No.2 will be considered by Parliament. 

Implementation will only commence after the Bill is passed by Parliament.

Self Directed Supports and Provider definition 

The NDIS Provider and Worker Registration Taskforce Report proposed narrowing the definition of a disability service provider. Currently, anyone that receives NDIS funding for goods or services is technically an NDIS service provider, including retail outlets. By defining a disability service provider first, it will make it clearer who will be in scope for the newly reformed registration down the track. 

The Taskforce also proposed a registration category for people who self-direct their supports. Self-directed support refers to people who contract all of their supports directly, such as through direct employment, services for one and independent contractors and is distinct from NDIS plan self management. In an earlier press release, the Minister said the initial consultation will consider the definition of self-directed supports for the purpose of registration.

Timeline:

October 2024: Consultation begins 

November 2024 - March 2025: Discussion papers, surveys and submissions.

From July 2025: Consultation outcomes shared and next steps announced.

How to get involved

Public consultation on changes to mandatory registration for Platform Providers, Support Coordinators and Supported Independent Living, and proposed amendments to the NDIS Act (Bill No.2) will start from this Thursday 31st October. Details to be added to this page shortly.

The NDIS Commission suggests it has learned from feedback to government during the rapid consultation period for Bill No.1 and says it will ensure its approach to round two is comprehensive. The NDIS Commission assures that everyone will have the opportunity to provide feedback during the consultation period and no changes or transition to mandatory registration will occur before 1 July 2025. Phew!

Consultation starts on 31 October. Email [email protected] to receive a notification when consultation opens! 

Authors

Jessica Quilty
Sara Gingold

Explore DSC