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Your NDIS funds at risk: Activists uncover alleged fraud

By Hazel Chen · 30 October 2026

Your NDIS funds at risk: Activists uncover alleged fraud

Crackdown on Alleged NDIS Fraud: Two Businesses Shut Down Following Tip-Offs

Allegations of NDIS fraud are a serious concern for everyone involved with the scheme – participants, families, carers, and legitimate service providers. In a recent development, reports indicate that the government has shut down two businesses following investigations into alleged fraudulent activity.

This news comes after significant efforts by political activist Drew Pavlou and Pete Zogoulas, who have been actively investigating and highlighting alleged misconduct within the National Disability Insurance Scheme (NDIS).

“Tip of the Iceberg”: A Growing Number of Concerns

Mr. Pavlou recently shared insights into the scale of their work, stating in a public interview that he and Mr. Zogoulas have received “over 1000 tip-offs in the last six months.”

He described the volume of information as “the tip of the iceberg,” suggesting that the reported cases represent only a fraction of potential issues within the scheme.

These tip-offs often involve various forms of alleged fraud, such as providers billing for services that were never delivered, charging for inflated hours, or offering services that are not genuinely necessary or appropriate for a participant’s plan.

What Does a Business Shutdown Mean for the NDIS Community?

When the government “shuts down” an NDIS provider, it typically means that regulatory bodies like the NDIS Quality and Safeguards Commission or the National Disability Insurance Agency (NDIA) have taken serious enforcement action.

This can involve suspending or revoking a provider’s registration, preventing them from delivering NDIS-funded services. Such actions are taken to protect participants from harm and ensure the integrity of the scheme.

For participants, these closures can sometimes cause disruption if they were receiving services from the affected provider. However, the primary goal is to safeguard participants and ensure NDIS funds are used appropriately to deliver genuine support.

Protecting the NDIS: What You Can Do

The NDIS is designed to provide life-changing support for people with disability. Allegations of fraud undermine trust and divert vital funds from those who genuinely need them. Here’s how participants and providers can play a role in maintaining the scheme’s integrity:

For NDIS Participants, Families, and Carers:

  • Review Your Statements: Regularly check your NDIS plan statements and invoices. Make sure the services listed match what you actually received and that the hours and costs are accurate.
  • Know Your Rights: Understand what services your NDIS plan funds and what to expect from your providers.
  • Speak Up: If something doesn’t feel right, or if you suspect a provider is engaging in fraudulent behaviour, don’t hesitate to report it.

For Disability Service Providers:

  • Uphold Standards: Ensure your practices are fully compliant with NDIS rules and regulations, and that your services are ethical, transparent, and high-quality.
  • Report Concerns: If you become aware of suspicious activity or alleged fraud, report it to the appropriate authorities. Protecting the NDIS protects all legitimate providers.

Where to Report Suspected Fraud

The NDIS Quality and Safeguards Commission and the NDIA take all allegations of fraud seriously. You can report concerns:

  • To the NDIS Quality and Safeguards Commission via their website or by phone.
  • To the NDIA directly.

Your reports help ensure that NDIS funds go to supporting people with disability, as intended, and that the NDIS remains a strong and reliable scheme for all.

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Hazel Chen

I work in marketing and communications for NDIS Local, helping connect NDIS participants, families, and providers with clear, useful information about the sector. I'm passionate about making the NDIS easier to understand and navigate, and about giving disability service providers a platform to reach the people who need them. If you'd like to know more about anything covered in this post, or you're a provider interested in being featured, feel free to get in touch.