Government introduces new bill, recall of coloured-sand products, Federal Court judgement, and more

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Provider Newsletter August 2025
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In this month's edition

  • Message from the Commissioner and Associate Commissioner

  • New bill introduced to strengthen NDIS safeguards – what providers need to know

  • Recall of coloured-sand products – asbestos alert

  • Federal Court judgment: NDIS Commissioner v Lifestyle Solutions

  • New Code of Conduct video – Eliminating violence, exploitation, neglect and abuse

  • Fraud Fusion Taskforce takes action

  • New rules strengthen integrity of NDIS audits

  • More NDIS Commission staff empowered to crack down on NDIS providers

  • Highlights from our Annual Report 2024-25

  • Get involved with International Day of People with Disability

  • Have your say about how we communicate with you

Message from the Commissioner and Associate Commissioner

Welcome to the November edition of our Provider Newsletter.

We welcome NDIS Minister, Senator Jenny McAllister’s introduction of the NDIS (Integrity and Safeguarding) Bill 2025 bill to Parliament on 26 November 2025. The bill increases safeguarding for participants and the integrity of the NDIS. This is a great milestone for the NDIS Commission following our extensive consultation with the disability community and sector on these proposed changes late last year. See the full story below for more information.

Another significant development is the Federal Court of Australia’s decision to impose a $2.5 million penalty on Lifestyle Solutions (Aust) Pty Ltd. This is the highest penalty imposed by the Court in proceedings brought by the NDIS Commission. The proceeding concerned NDIS participants and support workers who suffered physical violence and abuse in a Supported Independent Living group home on the NSW Central Coast. More details below.

We’ve started making changes to the Provider Newsletter’s format to make it more engaging and useful to you. If you’d like to provide feedback on the newsletter or any other way in which the NDIS Commission communicates with you, please complete this survey.

Remember you can forward this newsletter to anyone you know who would benefit from it, and encourage them to sign up online. 

Louise Glanville and Natalie Wade
NDIS Quality and Safeguards Commissioner and Associate Commissioner   

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New bill introduced to strengthen NDIS safeguards – what providers need to know

Minister for the NDIS, Senator Jenny McAllister introduced the NDIS (Integrity and Safeguarding) Bill 2025 that proposes a range of new powers for the NDIS Quality and Safeguards Commission to take stronger regulatory action.  

The reforms aim to enhance protections for NDIS participants while strengthening the integrity and sustainability of the scheme. If passed, the Bill will provide the NDIS Commission with expanded powers to take earlier and stronger regulatory action. 

The NDIS Commission consulted extensively on these proposed changes late last year and received strong support for the measures. You can read the full consultation report on the NDIS Act and Rules page of our website.

The reforms align with recommendations from the NDIS Review and the Disability Royal Commission. 

Key changes included in the bill are:

Stronger penalties

  • Increased civil penalties for non-compliance
  • New criminal offences for serious breaches

Anti-promotion orders

  • New powers to restrict predatory marketing that exploits participants or damages the NDIS

Expanded banning powers

  • Ability to ban auditors and consultants, not just providers and workers

Enhanced information-gathering powers

  • Clearer powers to require providers to produce information and documents in a timely manner

Full details of the bill are available on the Australian Parliament House website.

Next steps

The bill will be subject to further scrutiny as it progresses through Parliament. We will share updates in future editions of this newsletter and on the Reform Hub page of our website.

Key takeaway

New legislation will, if passed, give the NDIS Commission stronger regulatory powers.

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Recall of coloured-sand products – asbestos alert

The NDIS Commission has published a Provider Alert relating to coloured-sand products, some of which have been found to contain asbestos. 

This follows a recall notice published by the Australian Competition and Consumer Commission (ACCC). Several coloured-sand products have been recalled. They were sold at various retailers including Officeworks. 

Coloured-sand products are commonly used for educational aids, sensory play, and arts and crafts.   

The affected products have been recalled because they may cause a risk to health as asbestos has been detected in some samples after laboratory testing.  

What providers should do   

As a precaution, anyone who has purchased coloured sand, whether from the ACCC list of affected products or from other suppliers, is advised to take the following action:  

  • Cease using all coloured-sand products. Do not allow children or adults to play with or handle them.  
  • Seek information from your relevant state work health and safety (WHS) regulator on safe disposal of materials. 
  • See our Provider Alert for more information about provider obligations, and the ACCC’s recall notice.  

Key takeaway 

We’ve published a Provider Alert relating to coloured-sand products, some of which have been found to contain asbestos. 

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Federal Court judgment: NDIS Commissioner v Lifestyle Solutions

The Federal Court of Australia has imposed a $2.5 million penalty on Lifestyle Solutions (Aust) Pty Ltd.

The proceeding concerned NDIS participants and support workers suffering physical violence and abuse in a Supported Independent Living accommodation facility located on the NSW Central Coast.

Lifestyle Solutions was responsible for providing various supports to the NDIS participants in the facility who required constant care and supervision.

One NDIS participant, who has complex communication needs, suffered multiple injuries while living in the home, including being bitten on the face and arm, being put in a headlock, and having her hair torn out.

Lifestyle Solutions admitted it had committed 96 contraventions of the NDIS Act, which included multiple breaches of the NDIS Practice Standards and Code of Conduct.  

It also admitted to 1,811 contraventions of the NDIS Reportable Incident Rules through failing to report serious incidents to the NDIS Commission within the required timeframes. These failures accounted for $500,000 of the total penalty.

For more information, please read our media release and the judgment.

Key takeaway

A record high penalty imposed by the Federal Court sends a clear message to NDIS providers who fail to comply with their obligations to keep participants safe.

New Code of Conduct video – Eliminating violence, exploitation, neglect and abuse

The NDIS Commission has released a new short video that's part of an educational series that will help providers better understand the NDIS Code of Conduct.

It covers eliminating violence, exploitation, neglect and abuse – one of 8 obligations under the Code of Conduct.

People with disability are entitled to feel safe, but face an increased risk of harm.

The video shows what this obligation means for providers through a real-world scenario that illustrates how the Code works in practice, and emphasises that it's essential for you to meet your obligations under the Code.

Watch the Code of Conduct video series on our website to learn more.

Key takeaway

Please take a moment to watch a new short video on the Code of Conduct element – eliminating violence, exploitation, neglect and abuse.

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Fraud Fusion Taskforce takes action

As part of the Fraud Fusion Taskforce (FFT), we’re working with agencies across government to detect and stop fraud in the NDIS.
 
The FFT is made up of 24 Australian Government agencies led by the NDIA and Services Australia. It includes the NDIS Commission, the Australian Federal Police and the Australian Criminal Intelligence Commission. The FFT focuses on high-risk and serious criminal activity targeting government programs designed to help those most in need. 
 
Since it was set up in November 2022, the FFT has actioned 259 compliance activities. These include 139 fraud-related banning orders issued to NDIS providers, workers and sole traders. And we’re just getting started.

As part of FFT operations, the NDIS Commission recently issued a notice of suspension and 12 notices of intention to refuse or revoke registration and to ban several individuals and providers. See this
FFT media release for more information.

NDIS Commissioner Louise Glanville said NDIS providers and workers who commit fraud undermine both the sustainability of the Scheme and the human rights of people with disability.

“As a formidable regulator, we will continue to work closely with our Fraud Fusion Taskforce partners to root out this conduct and protect the integrity of the NDIS,” she said.

Last week was International Fraud Awareness Week. Its website has plenty of resources to help organisations reduce fraud.

If you’re worried an NDIS provider or worker is involved in fraud – even if it’s only a suspicion – report it via the Fraud page of our website.

Key takeaway

The NDIS Commission is working with the Fraud Fusion Taskforce to address fraud in the NDIS.

New rules strengthen integrity of NDIS audits

The NDIS Commission is shutting the door on banned individuals who try to re-enter the system as auditors.

The NDIS Commissioner has had the power to ban NDIS providers and workers but, until recently, had no power to prevent them from re-entering the system to work as Approved Quality Auditors (AQAs). The role of AQAs is a critical one in the NDIS ecosystem. It’s designed to ensure that only quality providers who pass thorough audits achieve registration.

Under reforms created by the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No.1) Act 2024, the NDIS Commissioner was granted new power to make rules for the approval of AQAs.

Using this power for the first time, the Commissioner consulted with states and territories to make the Approved Quality Auditors Rules 2025, which set out new conditions for approval as an AQA.

Critically, the rules allow the NDIS Commissioner to withhold or withdraw approval from any AQA that employs or otherwise engages any person who has been banned by the NDIS Commission.

The changes allow the NDIS Commission to issue banning orders against a broader range of people, including auditors and consultants – further reinforcing the regulator’s ability to control which providers and workers can operate within the Scheme.

Key takeaway

The NDIS Commission has developed rules that enable the NDIS Commissioner to prevent banned individuals from re-entering the NDIS as Approved Quality Auditors.

More NDIS Commission staff empowered to crack down on unscrupulous NDIS providers

The NDIS Commission is strengthening its ability to crack down on providers who deliver unsafe or poor-quality supports to Australians with disability.

More than 50 existing officers will be empowered and trained to take regulatory action against those who breach the NDIS Code of Conduct or NDIS Practice Standards.

This includes powers to issue infringement and compliance notices, which can direct providers to pay financial penalties or address non-compliance.

The changes have been enabled by the passage of the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024.

Commission staff must undergo training before being able to exercise the additional powers.

Key takeaway

More NDIS Commission staff will be able to exercise powers relating to compliance and infringement notices. This will strengthen our ability to crack down on unscrupulous providers.

Highlights from our Annual Report 2024-25

The NDIS Commission’s latest Annual Report highlights strong progress in building a safer, higher-quality and more accountable NDIS for participants across Australia.

Among our key results and achievements are:

  • a significant increase in compliance and enforcement activity, with outcomes increasing by 214% year-on-year, and major increases in banning orders, compliance notices and civil penalty actions. This reflects a stronger focus on holding providers accountable and protecting people at greatest risk.
     
  • investment in intelligence and collaboration, improving data-sharing with the NDIA and state and federal agencies leading to faster detection of and response to serious non-compliance.
     
  • significant consultation on legislative reform, including targeted engagement with industry bodies, peak bodies and people with disability.

See our media release for more information. The Annual Report 2024–25 is available on the Corporate reports page of our website.

Key takeaway

The NDIS Commission has just published its latest Annual Report, which highlights a range of our achievements throughout 2024-25.

Get involved with International Day of People with Disability

International Day of People with Disability (IDPwD) is on 3 December. It’s a day to promote awareness, understanding and inclusion of the 5.5 million people with disability in Australia.

In Australia, IDPwD is a joint effort between government, schools, organisations, community groups, businesses and individuals.

The Australian Government, through the Department of Health, Disability and Ageing, funds a national program to promote and raise awareness of this day.

There are many ways you can help spread the word about IDPwD and amplify messages of inclusion. You can:

  • hold or attend an event on 3 December. These event information kits will help you plan, theme and deliver your event, no matter how big or small. 
     
  • use your digital and social media channels to share IDPwD messages. Check out these social media resources.    
     
  • promote lived experience stories of disability, including IDPwD’s 2025 Ambassadors. 

To learn more about the IDPwD program, visit the IDPwD website.

Key takeaway

International Day of People with Disability on 3 December is a great chance to be part of creating an inclusive and diverse community in Australia.

Have your say about how we communicate with you

We would like to hear from all disability service providers and workers about how you prefer to receive and engage with information, and how we can improve our communications. Your feedback will guide how we deliver clearer, more relevant, and trusted communications in future.

This short survey, conducted by research consultancy 89 Degrees East on behalf of the NDIS Commission, will take about 5 minutes to complete.

Your responses are confidential and will only be used for research purposes. The survey does not collect personally identifiable information. Participation is voluntary, and you can exit the survey at any time.

The survey will be open until mid-December.

Key takeaway

We’d be grateful if you could complete a survey that will help us improve how we communicate with providers and workers.

Resources for providers 

Our website has a range of resources to support you deliver safe and quality services and comply with your registration:

  • Provider registration
  • Worker resources  
  • NDIS Code of Conduct 
  • Worker screening  
  • NDIS Practice Standards 
  • Reportable incidents 
  • Incident management 
  • Workforce Capability Framework 

Resources for behaviour support practitioners 

  • Understanding behaviour support and restrictive practices - for providers
  • Rules for behaviour support and restrictive practices
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Connect with us

 

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General enquiries

1800 035 544 (free call from landlines)

Our Contact Centre is open Monday to Friday 9am - 5pm (7:30am-3:30pm in WA), excluding public holidays.

You'll find other means of contacting us on the Contact us page of the NDIS Commission website.

To provide feedback, contact the NDIS Commission by emailing 
feedbackandcomplaints@ndiscommission.gov.au.
 

Thanks for reading!

You can find past issues of the NDIS Commission provider newsletter on our website.  

The NDIA also publishes various newsletters, including a provider newsletter.

 
 
 

NDIS Quality and Safeguards Commission
PO Box 210
Penrith NSW 2751

 

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Privacy Policy | NDIS Quality and Safeguards Commission (ndiscommission.gov.au)

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