NDIS Fraud and the Critical Role of NDIS Plan Managers in 2025
NDIS Fraud and the New Era of NDIS Plan Management
As the National Disability Insurance Scheme (NDIS) continues to grow, so too does the focus on fraud prevention and integrity. The scheme is currently expanding at a rate of 9.7% per year, costing the Federal Government approximately $48.5 billion—slightly above the targeted annual growth rate of 8%. This financial growth has triggered a renewed crackdown on NDIS fraud, with the latest federal budget allocating $151 million over the next four years specifically for this purpose.
Several government bodies are now working together to safeguard the integrity of the NDIS, including:
- The National Disability Insurance Agency (NDIA)
- The Payment Integrity Team
- The Task Fraud Fusion Team
- The NDIS Quality and Safeguards Commission
These agencies are using advanced data-matching systems in collaboration with the Australian Taxation Office (ATO) and Fair Work Ombudsman to detect anomalies and target fraudulent activity. Providers are under more scrutiny than ever before.
The Overlooked Role of NDIS Plan Managers in Preventing Fraud
Amidst this evolving landscape, one key group often goes unrecognised: the NDIS Plan Manager. While some reports and investigations unintentionally shift blame toward plan managers, the reality is that many NDIS Plan Managers serve as frontline defenders of scheme integrity.
Yes, there are instances of misconduct among plan managers—over 700 were placed under manual payment review by the NDIA in Q1 2025 alone. This process ensures extra scrutiny before any payment is approved. But what often goes unreported is how many NDIS Plan Managers are the very ones raising red flags and submitting tip-offs about suspicious claims or practices.
In fact, with over 7,000 fraud-related tips received by the NDIA last quarter, we’d argue that a significant majority of these come from NDIS Plan Managers. Why? Because genuine plan managers operate independently from both service providers and participants. They have clear visibility into payment activity and are well-positioned to identify inconsistencies. Their vested interest lies in maintaining a clean, compliant, and sustainable NDIS.
Not All Plan Managers Are Created Equal
In the world of NDIS Plan Management, size matters. Micro plan managers often struggle with incentives, balancing compliance against the pressure to keep both service providers and participants happy—especially when their income per participant is fixed at $104.45 per month.
At the other end of the spectrum, mega plan managers face a different issue: scale. Detecting and investigating small-scale fraud becomes operationally and financially unfeasible. These investigations often require senior staff time and lack adequate funding structures to make ongoing fraud detection viable.
There’s a “sweet spot” in the size and structure of an NDIS Plan Manager. With strong systems, trained staff, and efficient processes, mid-sized plan managers can play a critical role in supporting the NDIA’s compliance efforts and protecting participants’ budgets.
The Uncertain Road Ahead for Plan Management
Unfortunately, investment across the NDIS Plan Management industry has slowed. Uncertainty about the future of plan management—combined with anticipated policy shifts tied to the upcoming federal election—has left many providers in limbo.
At Awesome Plan Management, we’re not sitting back and waiting. We are actively working with our NDIS participants and service providers to ensure everyone remains compliant and well-prepared for whatever changes lie ahead.
Whether it’s educating providers, improving internal fraud detection systems, or helping participants navigate the scheme more safely, Awesome Plan Management is committed to upholding the integrity of the NDIS—today and into the future.