Record $2.5 million penalty imposed on NDIS provider for failing to keep participants safe
NDIS Quality and Safeguards Commissioner Louise Glanville today welcomed a record $2.5 million penalty imposed by the Federal Court against Lifestyle Solutions (Aust) Pty Ltd. This represents the highest penalty imposed by the Court in proceedings brought by the NDIS Quality and Safeguards Commission (NDIS Commission).
The proceeding concerned NDIS participants and support workers suffering physical violence and abuse in a Supported Independent Living accommodation facility located on the central coast of New South Wales.
Lifestyle Solutions was responsible for providing various supports to the NDIS participants who were residents in the home and required constant care and supervision.
One NDIS participant, who has complex communication needs, suffered multiple injuries while living in the home, including being bitten on the face and arm, being put into a headlock, and having her hair torn out.
Lifestyle Solutions admitted it had committed 96 contraventions of the NDIS Act, which included multiple breaches of the NDIS Practice Standards and Code of Conduct between June 2019 and October 2021.
The Manager, who was responsible for the accommodation facility at the time, admitted she had committed 13 contraventions of the NDIS Act.
Lifestyle Solutions also admitted that it had committed 1,811 contraventions of the NDIS Reportable Incident Rules as a consequence of Lifestyle Solutions failing to report serious incidents to the NDIS Commission within the required timeframes between November 2018 and December 2023.
The Federal Court found the home was not a safe environment for the Residents or support workers, noting abuse was not managed, assessed or responded to adequately or appropriately.
Support workers were also subject to harm from other participants in the home, including being bitten, spat on and physically hit.
In delivering the Court’s judgment, Justice Abraham said:
“As the Commissioner submitted, violence and abuse in supported living accommodation settings is never acceptable and should not be allowed to become normalised. It is important that the penalty imposed on Lifestyle Solutions is of a size that marks the seriousness of the contraventions.
“The Residents were entitled to be safe and protected, but they were not. These issues were not managed or reported on adequately. Lifestyle Solutions did not take all reasonable steps to respond to and prevent further violence. The seriousness of the contraventions and the impact that conduct has had on those affected is self-evident.”
Commissioner Glanville said the NDIS Commission will continue to take strong action against providers that fail to deliver safe, quality services to people with disability.
“The safety of NDIS participants who live in supported accommodation arrangements is paramount,” Commissioner Glanville said.
“Participants have the right to feel safe, secure and respected at all times.
“Registered providers have legal obligations to report serious incidents within required timeframes. Failure to do so leaves participants at serious risk of harm and prejudices our regulatory work.”
This court case was the first of its kind regarding abuse of this nature in a supported accommodation facility.
Associate Commissioner and Chief Legal Counsel Natalie Wade said the Court’s decision demonstrates the serious consequences for providers who breach their obligations.
“This legal action and the record high penalty imposed by the Court sends a clear message to NDIS providers who fail to comply with their obligations to keep participants safe,” Associate Commissioner Wade said.
“The NDIS Commission will not hesitate to use every power – including civil proceedings – to protect the human rights of people with disability.”
A copy of the judgment will be available on the Federal Court website at www.fedcourt.gov.au.
The total $2.5 million penalty is comprised of:
- $2 million against Lifestyle Solutions for its failures to comply with the NDIS Practice Standards and Code of Conduct; and
- $500,000 against Lifestyle Solutions for its failures to comply with the NDIS Reportable Incident Rules.
The Court also ordered Lifestyle Solutions to pay the NDIS Commission’s legal costs in the total amount of $150,000.
ENDS