Anthony Albanese and Mark ButlerPrime Minister Anthony Albanese

Australia’s biggest fraud? – NDIS theft forecast to reach up to $6 billion under the Labor Party in 2027/2028

Prime Minister Anthony Albanese and the Labor Party have been using smoke and mirrors, trying to hide their failed management of the NDIS, blaming anyone and anything but themselves.

But the cat was let out of the bag when NDIS management told a parliament hearing on Thursday (23/4/26) that fraud and theft have been growing on Labor’s watch since 2022, with forecasts showing they will hit between $3.6 and $6 billion by 2027 / 2028.

It doesn’t matter how the ALP and its supporters spin it. If fraud and theft are still growing under the Labor Party, which they are, then they have failed badly.

The reason the fraud and theft are still growing under the Labor Party since 2022 is because they have failed to fix basic problems, such as allowing NDIS providers to be paid by just sending in an invoice without any proof of services provided.

The below video I edited from the full video of the Joint Committee of Public Accounts and Audit – Inquiry into the NDIS which was held at Parliament House on Thursday, 23/04/2026.

The key people speaking are ALP MP Josh Burns who is the chair, NDIS Deputy CEO Integrity Transformation and Technology Services John Dardo and the Auditor-General for Australia Caralee McLiesh.

(I will record a reaction video for the above video and publish it on the KCA YouTube channel in a couple of days)

Key video details:

  1. 6-minute mark – “Let’s see what it has found and how it is going” – Leakage in 2022 / 2023 for non-compliant, fraudulent or incorrect claims was between $2 and $3.5 billion. The true figure would have been higher says NDIS employee John Dardo.
  2. 12.30-minute mark – 2500 ABN holders who are providers, who billed the NDIS $5.5 billion had payment holds put on them until they could verify their work for payment. The vast majority have ceased claiming and will never claim again, a number have been sent to prosecutions. They can’t say it was all fraud, but it certainly sounds like most of it was.
  3. 14.10-minute mark – Leakage in 2022 / 2023 of between $2 and $3.5 billion is forecast to increase to $3.6 to $6 billion by 2027 / 2028. “Given the NDIS has done some good work regarding fraud and theft, why is it still getting worse?” They need reform says NDIS employee John Dardo.
  4. 15.50-minute mark – NDIS employee John Dardo says the NDIS does not see a single piece of evidence or work done before they pay providers their claims. That is the current system design that has been inherited, and the policy settings have to change he says.
  5. 16.35-minute mark – The Auditor Generals Office is asked a question – Findings: Prior to 2024 the NDIS lacked even basic prevention controls for fraud and non-compliance, and they were self-assessed as catastrophically weak, and even basic checks weren’t done. Measures to detect non-compliance were very rarely used, but when they were used, they were successful more than 50% of the time.
  6. 19-minute mark – Estimate of 6% to 10% of claims are fraudulent or non-compliant. NDIS says it is 8.2%.
  7. 20.15-minute mark – 0.4% of NDIS claims were audited with 53.7% of those claims cancelled because they were non-compliant with the Auditor Generals Office recommending the NDIS expand the audit size.

You can watch the video and draw your own conclusions, but I will make one more point.

Exposing the 2500 ABNs who are providers who billed $5.5 billion and driving them out of the NDIS sounds like good work.

But given how easy it is to rip off the NDIS, I wonder how many of those 2500 ABN providers just rebadged and started ripping off the NDIS again, which might help account to some degree for why fraud and theft is still growing.

In recent days the government has announced some major planned changes to the NDIS but that is all it is, planned changes.

The planned changes might never eventuate, given Labor planned to stop the fraud and theft at the NDIS when they won the federal election in 2022, yet it is forecast to keep increasing until at least 2027 / 2028.

Any private company being run as badly as the NDIS would have its entire board and management sacked and the entire NDIS board need to go and so do the Ministers Mark Butler and Jenny McAllister.

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10 replies »

  1. Well it is Australia scam and screw everything you can 😂. This is why we vant have nice things especially when corporate business gets hold of it, i know people having their cat watched at 50 dollars an hr whilst same company charges for another person to take them out. But will not approve a qualified family member to do the job for less. Plus it wouldn’t really be that much if corporations paid tax like Sky News, energy and mining .

  2. I can’t even receive my aged pension without a quarterly profit and loss. Why can’t they get supporting evidence

  3. PM Howard devised the for profit providers for Aged Care, Childcare, Job Providers,….with good taxpayer money in the hope/expectation that they may donate to the Liberal Party as a ‘thank you’.
    The NDIS is run the same way. A big donations kitty results in good election advertising which wins votes and government. Labor’s plan too.

  4. Seems NDIS management needs to go according to their statement … fraud & theft has been rampant since Albo took over

  5. The fraud has been committed by participants, providers, workers, and nearly all those who are involved. In many different ways. I am absolutely disgusted at the waste and greed that has taken place within NDIS. Shame on all those involved.

    • I know of some people who use NDIS funds to travel from one State to another just for a Hard Rock concert, accompanied by NDIS worker or manager, friends and family member. Accommodation, tickets and travel all paid by NDIS. That’s not a medical treatment, is it?? !!!

  6. The NDIS was designed by top tier fraudsters for their fraudster mates to become the next round of newly minted tax-funded millionaires. It’s a disgrace. I help my partner with his 24/7 care for his 34 year old wheelchair-bound son who has cerebral palsy. Last year, his invisible mother wanted to take him to an NDIS funded ‘resort’ complete with carers at her beck and call. She was quoted $12,000 for a five day holiday. The property had a swimming pool but didn’t have a hoist for physically disabled clients and that would have cost another $500/day.

    Out of respect for Australian tax payers, the invisible mother was told that her extravagant holiday would not be funded from her son’s NDIS budget and that she could instead take him to her home and organise outings and activities together. That was a fair call, I thought. We take him on road trips and his expenses are paid for by his dad. And it’s not as though the mother is short of money. Her divorce settlement was six figures and then some… She contributes zero to her son’s life and expects a tax-funded holiday. Not on our watch.

  7. People charge twice as much when they hear that it’s funded by the NDIS. I rang a gym to get help for my 20 year old autistic son, and was quoted a price. Rang back a week later when the NDIS was available to him, and was quoted a much bigger number. I emailed Bill Shorten, the minister responsible at the time, to tell him about this obvious rort, but I got a form letter back, no interest shown. I have tried to get some interest from journos as well, but nobody seems interested in what seems to me to be a major rort.

  8. The fact that 94.5% of so-called service ‘providers’ aren’t even registered with the NDIS is a grave management failure and it is utterly pathetic.
    Butler and Labor are blaming anyone but themselves for not doing their job.
    This week he accepted ZERO responsibility for his very own actions as he cried in the media ‘for how do we know what they do’? As if he is helpless as well as clueless.
    Well if it is compulsory to register in your system – and I am very sure a registration system exists – then you would know, you absolute dropkick.
    THIS IS LITERALLY THE HEALTH MINISTER’S JOB. MANAGING THE HEALTH PORTFOLIO.
    Butler cannot do his job and has not been doing his job as other ministers before him have also failed to do. However forget about the previous ministers whose clown shoes he now walks in; Butler is currently responsible and therefore should be sacked.
    MPs forget they are public servants. They work for us. We pay their salaries and lavish perks. We ask in return they do the job they are remunerated for. Many have been fired for much less incompetence.
    Really what it comes down to is Labor cannot stave off any longer the gross fraud as it has swollen like yeasty dough on a warm day and they realise it’s the end of the golden river of taxpayer-funded gravy and kickbacks without there being a huge scandal. ‘Getting ahead of it’ means trying to move blame to recipients such as spectrum disorder sufferers won’t really have any effect except a negative one ultimately on the very people the scheme services, but it’s a great distraction.
    Personally I’d like to see Butler dragged into a public square and his shoes dangling out the other side of a trapdoor.

  9. The pattern is familiar.

    Australia’s emerging NDIS fraud crisis — forecast to reach $3.6 to $6 billion by 2027–28 — is not a new phenomenon. It follows a long line of national failures where oversight collapsed, evidence was ignored, and public money vanished. Robodebt unlawfully targeted vulnerable Australians, contributing to suicides and costing millions. The Pink Batts program suffered fatal safety failures and financial waste. Each scandal exposed the same structural weakness: systems built on trust without verification.

    The Telstra/COT Cases lived through this pattern decades earlier. While they struggled to operate businesses without a reliable phone service, they were forced to spend hundreds of thousands of dollars each just to compel the TIO, Telstra, and the appointed arbitrator to investigate why their services still failed. Even then, evidence was withheld, documents altered, and promised assessments — including the commercial review linked to Senator Barnaby Joyce’s decisive vote on Telstra privatisation — were never delivered.

    Yet when Telstra could not provide Rupert Murdoch and FOX with the same reliable service, they received $400 million to keep their operations afloat (Refer to Rupert Murdoch -Telstra Scandal – Helen Handbury).

    Across NDIS, Robodebt, Pink Batts, and Telstra/COT, the pattern is identical: when accountability fails, fraud grows, evidence disappears, and ordinary Australians pay the price.

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