Government Unveils $203 Million Crackdown on Veteran Payment Fraud
The federal government has announced a $203 million initiative to address fraud within the veterans' payment system. This response follows the detection of fraudsters, previously active in the National Disability Insurance Scheme (NDIS), targeting former service personnel. This exploitation has reportedly harmed veterans and increased the cost of their payments.
The $203 million initiative targets fraudsters, many previously active in the NDIS, who have been preying on former service personnel, harming veterans and inflating payment costs.
Over the past three years, the government invested half a billion dollars to process a backlog of veteran compensation claims. This increased funding has also made the scheme attractive to fraudulent actors.
Reported Instances of Fraud
Reported instances of fraud include:
- Doctors submitting false medical reports, receiving payments for unapproved claims, and billing for unnecessary tests.
- Advocates preying on veterans by exaggerating claims and charging commissions up to a quarter of veterans' lifetime compensation.
- A recent case involved an occupational therapy business in Perth allegedly submitting over $7 million in fraudulent treatment claims to the Department of Veterans Affairs (DVA) by billing for services not provided or duplicating claims.
Government Response and Integrity Measures
Veterans Affairs Minister Matt Keogh stated that the $203 million crackdown will include funding for free advocates to help veterans navigate the complex system. Stricter auditing of medical reports will also be implemented to prevent fraudulent activities by health professionals.
Mr. Keogh indicated that while faster claim processing might attract some individuals attempting to exploit the system, the government is implementing proper integrity measures. He confirmed that individuals who have attempted to manipulate systems like the NDIS would be unable to do so within the DVA, facing removal and potential legal action.
Minister Keogh emphasized that individuals who have attempted to manipulate systems like the NDIS will be unable to do so within the DVA, facing removal and potential legal action.
The Australian Criminal Intelligence Commission previously warned that methods used by fraudulent NDIS providers were being observed in other payment programs. This followed NDIS reforms in 2024, which aimed to tighten approved activities and improve fraud detection.
Addressing For-Profit Advocacy Services
Minister Keogh also announced forthcoming consultations on reforms to address for-profit advocacy services. These services have been reported to charge substantial commission-based fees, in contrast to the typically free advocacy provided by groups like the Returned Services League (RSL).
The RSL has called for a ban on these largely unregulated fee-for-service advocates, whose presence has grown as veteran claim numbers and complexity have increased.
The RSL has called for a ban on largely unregulated fee-for-service advocates, who are reported to charge substantial commission-based fees, in contrast to the free advocacy they provide.