Ensuring Compliance with NDIS Code of Conduct and Practice Standards

Executive Summary

The National Disability Insurance Scheme (NDIS) represents a significant commitment by Australia to enhance the quality of life for individuals with disabilities. 

Central to this commitment are the Code of Conduct and Practice Standards, which set the benchmark for service delivery. Recent legal precedents have underscored the critical importance of adherence to these standards. 

This article aims to provide NDIS service providers with an overview of these obligations and the consequences of non-compliance.​

Understanding the NDIS Code of Conduct and Practice Standards

The NDIS Code of Conduct, set out in the National Disability Insurance Scheme (Code of Conduct) Rules 2018, outlines the minimum expectations for all providers and their workers, ensuring that services are delivered in a safe, ethical, and respectful manner. It emphasises the rights, dignity, and well-being of participants, aiming to protect them from abuse, neglect, violence, exploitation, or discrimination.

Complementing the Code of Conduct, the Practice Standards provide a framework for assessing and improving the quality of services.  They serve as a benchmark against which the quality and safety of supports and services are measured, ensuring that providers meet the necessary requirements to deliver high-quality care. ​

Recent Case Law

Several Federal Court cases have recently highlighted the severe consequences of non-compliance with NDIS standards:

1. NDIS Commission v LiveBetter Services Pty Ltd [2024] FCA 374:

   In April 2024, LiveBetter Services Ltd was fined $1.8 million (plus costs) following the death of an NDIS participant who suffered fatal burns while receiving personal care. The Court found that LiveBetter failed to implement adequate training, policies, and procedures regarding safe bathing, leading to this tragic incident.

2. Commissioner of the NDIS Quality and Safeguards Commission v Australian Foundation for Disability [2023] FCA 629:

   This case involved the Australian Foundation for Disability (Afford), which faced legal action due to significant breaches of NDIS standards. The Court's decision underscored the necessity for providers to adhere strictly to their obligations under the NDIS framework, including a $400,000.00 (plus costs) penalty for their contravention.

3. NDIS Quality and Safeguards Commission v Valmar Support Services Ltd [2025] FCA 11:

   In January 2025, Valmar Support Services Ltd was penalised a record $1.9 million (plus costs) following the death of an NDIS participant who choked due to inadequate mealtime management. The Court found that Valmar failed to implement proper dietary plans and staff training, leading to this preventable tragedy.

Key Compliance Responsibilities for NDIS Service Providers

To ensure compliance and avoid severe penalties, NDIS service providers must:

• Adhere to the Code of Conduct: Implement policies and procedures that align with the Code, ensuring that all staff understand and commit to these standards.​

• Meet NDIS Practice Standards: Regularly assess and improve service delivery to meet the benchmarks set by the Practice Standards, ensuring high-quality and safe supports for participants.​

• Provide Adequate Staff Training: Ensure all staff receive comprehensive training relevant to their roles, particularly in areas critical to participant safety, such as mealtime management and personal care.​

• Implement Robust Policies and Procedures: Develop and enforce policies that promote participant safety and well-being, including regular audits and supervision to ensure compliance.​

• Engage Qualified Professionals: When necessary, involve dietitians, speech pathologists, and other specialists to address specific participant needs, ensuring personalised and effective care.​

Conclusion

Compliance with the Code of Conduct and Practice Standards is not merely a legal obligation but a moral imperative to ensure the safety and well-being of individuals with disabilities. 

The recent legal cases serve as stark reminders of the consequences of non-compliance.  NDIS service providers must proactively implement comprehensive compliance programs, prioritise staff training, and continually assess and improve their service delivery to uphold the trust placed in them by participants and the broader community.

Ensure your NDIS compliance is watertight—don’t wait for a legal issue to arise.  Contact us today to schedule a consultation and get expert legal guidance on meeting your obligations.