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Australian Services Union urges government to take profit out of the NDIS.

Angus Mc Farland, a  smiling person in a purple tie and a blue suit jacket
Emma Myers

Jan 15, 2026

Many people within the disability community rely on NDIS support workers to go about their daily lives, however some are concerned that for-profit providers are jeopardising the viability and integrity of the Scheme.

The Australian Services Union (ASU), a dedicated workers rights collective, is urging the federal government to consider banning profiteering companies from the scheme as the number of disability support workers experiencing breaches to their employment contracts continues to grow.

The union’s NDIS spokesperson, Angus McFarland, claims the ASU has investigated 102 providers for underpaying workers and breaching the Fair Work Act.

Our union is constantly playing whack-a-mole on dodgy providers who rip off workers. Virtually all of these bad players are for-profits. Many of these NDIS providers are ripping off workers then phoenixing or leaving the industry.

Angus McFarland

he ASU spokesperson argues the same service providers are also engaging in broader fraudulent activities within the NDIS.

“When there is so much commentary about the sustainability of the NDIS, it’s time for a conversation about why we have providers with profit motives in the scheme at all,” Mr McFarland  says.

“The proliferation of for-profit NDIS providers all began under the Coalition government where we witnessed a rise in rip offs, fraud and undermining of the promise of the NDIS largely driven by a marketised and deregulated system.” 

It is worth noting that two NDIS service types will soon be subject to mandatory registration in an effort to crack down on fraud.

Last month, the federal government announced a new mandatory regulation procedure for Supported Independent Living (SIL) and digital service providers within the NDIS.

The new changes are posed to regulate service providers to ensure participants are receiving high quality care. The registration tactic could also ensure independent audits and worker screening checks are undertaken on a regular basis, according to National Disability Services.

Mandatory registration of Supported Independent Living and digital platform providers are set to roll out later this year.