NDIS fraud offences and penalties in Australia.

NDIS fraud has become one of the most active areas of Commonwealth white-collar enforcement. The figures released this week put that beyond argument. The people sentenced this week are not named here, and the matters referred to are reported only as a fact of the public record; everyone charged is presumed innocent until a court finds otherwise, and this article is about the legal framework, not any individual. What follows explains the offences the Crown brings, the penalties they carry, and how a case is built and defended.

What is NDIS fraud?

NDIS fraud is a plain-English label for dishonest conduct that takes money from the National Disability Insurance Scheme. It is not a single offence with that name. It is a set of Commonwealth fraud offences applied to NDIS money. The conduct takes a few common shapes.

Provider billing fraud is the most common. A registered or unregistered provider bills the scheme for supports that were never delivered, inflates the hours or the rate, or bills for a participant who has died or left the scheme. Access and eligibility fraud involves false information given to get onto the scheme or to inflate a plan. Participant misuse covers spending plan money on things that are not supports, such as rent, loan repayments or everyday bills. Some of the larger matters involve organised groups using sham provider businesses and fake invoices, often with the proceeds laundered through other accounts.

The line between fraud and error matters. A mistake about what a plan covers, or a genuine administrative slip, is not a crime. Fraud needs dishonesty. The prosecution has to prove the accused acted dishonestly, by the standards of ordinary people, and knew that what they were doing was dishonest by those standards.

What criminal offences cover NDIS fraud in Australia?

NDIS money is Commonwealth money. Fraud against the scheme is charged under Part 7.3 of the Criminal Code Act 1995 (Cth), the same part used for Medicare, Centrelink and tax fraud. Four offences do most of the work.

Section 134.2, obtaining a financial advantage by deception, is the standard charge. The Crown proves that the accused, by a deception, dishonestly obtained a financial advantage from a Commonwealth entity. False invoices and inflated claims fit squarely within it. Section 134.1, obtaining property by deception, covers the money itself where it is characterised as property. Section 135.2, obtaining a financial advantage, is a lesser offence used where deception is harder to pin down but the advantage was obtained dishonestly. Section 135.1, general dishonesty, is the catch-all for dishonestly causing a loss, or a risk of loss, to the Commonwealth.

Where the proceeds are moved, hidden or spent, money laundering charges under Division 400 of the Criminal Code are added. Dealing with money that is the proceeds of crime, or that becomes an instrument of crime, is an offence in its own right, and the penalty rises with the amount and the offender's state of mind. In the larger syndicate matters, fraud against the Australian Taxation Office sits alongside the NDIS charges on the same brief.

What is the maximum penalty for NDIS fraud?

The headline numbers are serious. Obtaining a financial advantage by deception under section 134.2 carries a maximum of 10 years imprisonment. So does general dishonesty under section 135.1 and obtaining property by deception under section 134.1. The lesser offence under section 135.2 carries 12 months. Money laundering under Division 400 scales up sharply with the sum involved and can reach 25 years for the most serious conduct.

The maximum is a ceiling, not a starting point. An actual sentence turns on the amount taken, the period over which the conduct ran, the role of the offender, any plea, any repayment and the personal circumstances. The sentence announced this week for conduct said to involve more than 2.2 million dollars over about three years shows where sustained, high-value offending can land. A single false claim by a participant under financial pressure sits at a very different place on the scale. Commonwealth sentencing is governed by section 16A of the Crimes Act 1914 (Cth), which lists the matters a court must weigh. There is no standard non-parole period for these offences; the NSW standard non-parole scheme does not apply to Commonwealth charges.

How is NDIS fraud investigated and prosecuted?

Most NDIS matters now come through the Fraud Fusion Taskforce, set up in November 2022. It brings together the National Disability Insurance Agency, the Australian Federal Police, Services Australia, the Australian Taxation Office, AUSTRAC, the Australian Criminal Intelligence Commission and the NDIS Quality and Safeguards Commission, among others. The government says the taskforce has launched more than 660 investigations and referred more than 60 people for prosecution.

The pattern is familiar. The agency's data analytics flag a claiming pattern that looks wrong. Payment records, provider registrations and bank data are pulled together. AUSTRAC tracing follows the money. Search warrants are executed and devices are seized. The brief is then referred to the Commonwealth Director of Public Prosecutions, which decides the charges and runs the case. The Quality and Safeguards Commission can ban a provider in parallel, which stops the business operating while the criminal matter proceeds.

Can your assets be restrained or forfeited in an NDIS fraud case?

Yes, and this is the part people often do not see coming. Under the Proceeds of Crime Act 2002 (Cth) the Australian Federal Police can obtain a restraining order over property before anyone is charged. Once restrained, the property cannot be sold or dealt with. The Commonwealth then seeks a forfeiture order or a pecuniary penalty order to take the value of the benefit.

In recent NDIS matters the restrained and forfeited assets have included houses, bank accounts, cryptocurrency, luxury cars, gold bullion, watches and jewellery. The confiscation proceeding runs on the civil standard, the balance of probabilities, and on its own timetable. It needs a separate response from the criminal charge. A person can be acquitted and still face a confiscation claim, and the two must be managed together from the start.

What are the new NDIS provider offences?

The National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Act 2026 added fresh criminal exposure for providers. It is now an offence to provide supports that require registration without being registered, and to breach a banning order. Each carries a maximum of 5 years imprisonment. The Act also lifts the civil penalties for serious breaches to more than 15 million dollars, and creates penalties for giving false or misleading information in a registration application.

From 1 July 2026, providers of Supported Independent Living and digital platform providers had to be registered. The practical effect is that a provider who keeps operating outside the registration rules now risks a criminal charge, not only a compliance notice. Providers who are unsure of their status should get advice before the Commission does it for them.

How a charge is defended.

The defence work starts before any charge. If an agency asks for documents or an interview, the first step is advice. There is a right to silence, and no obligation to take part in a record of interview. Records held by a provider or a participant may attract legal professional privilege once a lawyer is engaged, and how a document request is answered can shape the whole case.

On the charge itself, dishonesty is the battleground. The Crown must prove the conduct was dishonest by ordinary standards and known to be so. Poor record-keeping, a misunderstanding of the rules, or a claim made on advice can all point away from dishonesty. Where the evidence of dishonesty is strong, the work turns to early resolution: a plea entered at the first reasonable opportunity attracts a discount for its utilitarian value, repayment of the money is a significant factor on sentence, and cooperation with the authorities under section 21E of the Crimes Act 1914 (Cth) can reduce a sentence further. The confiscation claim is negotiated alongside the plea.

Frequently asked.

Is NDIS fraud a state or a Commonwealth offence?

It is a Commonwealth offence. NDIS money is Commonwealth money, so fraud against the scheme is charged under the Criminal Code Act 1995 (Cth) and prosecuted by the Commonwealth Director of Public Prosecutions. The matter is heard in a state court, such as the District Court of NSW, but the law applied is Commonwealth law and sentencing runs under section 16A of the Crimes Act 1914 (Cth).

Can an NDIS participant be charged with fraud?

Yes. Providers, participants, plan managers and support coordinators can all be charged. Access fraud, eligibility fraud and spending plan money on things that are not supports can each be charged if the prosecution proves dishonesty. A genuine billing error or an honest mistake about what a plan covers is not fraud, because the dishonest intent is missing.

What is the maximum penalty for NDIS fraud?

Obtaining a financial advantage by deception under section 134.2 of the Criminal Code (Cth) carries a maximum of 10 years imprisonment, as does general dishonesty under section 135.1. Money laundering under Division 400 can reach 25 years for the most serious conduct. The new offence of providing NDIS supports that require registration without being registered carries up to 5 years.

What should you do if the Fraud Fusion Taskforce contacts you?

Get advice before you answer questions or hand over documents. You are not obliged to take part in a police record of interview, and anything you say can be used against you. A lawyer can deal with the agency for you, protect privilege over your records, and make sure a request for documents is answered properly.

Can the government take your assets in an NDIS fraud case?

Yes. Under the Proceeds of Crime Act 2002 (Cth) the Australian Federal Police can restrain property before a charge is decided, and seek forfeiture later. Bank accounts, real estate, cryptocurrency, vehicles, gold and jewellery have all been restrained in recent NDIS matters. The confiscation case runs separately from the criminal charge and needs its own response.

Primary sources: Criminal Code Act 1995 (Cth) Part 7.3 and Division 400, Proceeds of Crime Act 2002 (Cth), Crimes Act 1914 (Cth) s 16A, and the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Act 2026. Section text can be read on JADE and the Federal Register of Legislation.

To speak to a criminal defence lawyer, call Aaron Kernaghan on 0421 717 019.

This article is written by Aaron Kernaghan, criminal defence lawyer at Brady & Associates Lawyers, as at 11 September 2026. It is commentary and reflects the personal opinion of the author only. It is not legal advice, it is not a substitute for advice on your own matter, and it does not purport to be accurate or complete. Any matter referred to may be before the court and any person charged is presumed innocent. For advice on a specific matter, contact Aaron Kernaghan on 0421 717 019 or contact the firm.

More criminal-law commentary by Aaron Kernaghan.

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