NDIS Integrity & Safeguarding Reforms: A Defining Shift for Providers

Key Points

• Civil penalties have increased significantly, with substantial fines and expanded powers for the Commission to act where advice or practices fall short.
• NDIS compliance now requires providers to demonstrate at any time that supports are safe, participant-centred, and aligned with the Practice Standards.
• A reactive approach to audit preparation is no longer sufficient, as the Commission expects systems to be embedded and consistently applied.
• Providers should focus on practical actions such as testing systems, reviewing evidence, strengthening governance oversight, and building workforce capability.

Summary

The NDIS Integrity and Safeguarding Bill 2025 represents a significant shift in how the sector is regulated and monitored. It introduces stronger enforcement powers and places greater accountability on both leadership and frontline delivery. Providers who take a proactive approach to strengthening their systems and embedding compliance into daily operations will be better positioned under the new framework.

The passing of the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025 marks a significant step forward in strengthening protections for NDIS participants and reinforcing the integrity of the scheme.

While the sector has seen ongoing reform, this legislation represents a clear shift in how compliance will be monitored, enforced, and responded to. The expansion of powers for the NDIS Quality and Safeguards Commission signals a move towards stronger oversight, earlier intervention, and increased accountability across all parts of the provider ecosystem.

On April 3, 2026, Parliament officially passed new integrity and safeguarding reforms. Read the NDIS Media Release here.

What Has Changed

The reforms introduce a number of critical changes that providers need to understand:

• Substantially increased civil penalties, with fines exceeding $15 million in cases where participants are harmed
• Introduction of criminal offences, with potential imprisonment of up to five years
• New powers enabling the Commission to ban consultants and auditors who provide poor or misleading advice
• Greater ability to act against misleading promotion and unsafe or non-compliant practices

These are not minor adjustments—they reflect a fundamental strengthening of enforcement mechanisms within the NDIS.

The Real Shift for Providers

This is not about more documentation.

It is about stronger enforcement and real accountability.
Providers must now be able to demonstrate, at any point in time, that their supports are:

• Safe
• Participant-centred
• Delivered in line with the NDIS Practice Standards

What This Means in Practice

Providers should expect:

• Stronger enforcement — the Commission has greater authority and is expected to use it
• Earlier intervention — issues may be addressed before they reach audit or formal compliance stages
• Greater accountability — across leadership, governance, and frontline service delivery

This is a significant shift in how compliance will be experienced across the sector.

What Will No Longer Be Sufficient

The following approaches are unlikely to meet expectations under this strengthened framework:

• Treating compliance as something to prepare for at audit
• Policies and procedures that are not implemented in practice
• Generic systems that do not reflect actual service delivery
• Reliance on external advice that is not grounded in operational reality

What Is Now Expected

Providers must be able to clearly demonstrate:

• Systems that are embedded and operating effectively
• Evidence of safe, quality support delivery
• Active leadership oversight of governance, risk, and compliance
• A culture of continuous improvement and accountability

What Providers Should Do Now: 5 Practical Steps

In light of the new integrity and safeguarding reforms, providers should be taking proactive steps now to strengthen their systems and reduce risk.

1. Test Your Systems — Not Just Your Documents
   Review whether your policies are actually being followed in practice.

Ask: If an auditor observed us today, would they see this in action?

2. Focus on High-Risk Areas First
   Prioritise areas such as incident management, behaviour support, restrictive practices, and participant safety. These are key focus areas for the Commission.
3. Check Your Evidence
   Ensure you can clearly demonstrate:

• How supports are delivered safely?
• How risks are identified and managed?
• How decisions are made and documented?

Good systems without evidence will not meet requirements.

4. Strengthen Leadership Oversight
   Governance is now firmly in scope.
   Leaders must be able to show active oversight of quality, risk, and compliance—not just delegation.
5. Invest in Workforce Capability
   Your staff are your system in practice.

Make sure they understand:

• What good practice looks like
• What is expected under the Code of Conduct
• How to respond in real situations

Bottom Line

These reforms reinforce a message that has been building across the sector:
Compliance is no longer an event.

It is how your organisation operates — every day or as we call it ‘Being Audit Ready at All Times’!

Providers who invest now in strengthening their systems, embedding practice, and building workforce capability will be far better positioned to navigate this new regulatory environment.

If you would like support understanding what these changes mean for your organisation, or reviewing your current systems against these expectations, please contact us—our team at Engels Floyd Quality Consulting can work with you to ensure your approach is not only compliant, but genuinely operational and aligned with the Commission’s expectations.