Radio interview with Minister McAllister, ABC AM – 23 September 2026

Media event date: 23 September 2026 Date published: 23 September 2026 Media type: General public RACHEL MEALEY, HOST: Minister. Thanks for joining AM JENNY MCALLISTER: My pleasure. RACHEL MEALEY: What kinds of criminals and criminal syndicates have been stealing from the NDIS?

JENNY MCALLISTER: Unfortunately, we do know that across the world, organised syndicates are targeting government payment programs, and Australia is no exception. The NDIS was left a very soft target by the previous Government, and we've been making significant investments to improve that. RACHEL MEALEY: Can you give an example of a criminal syndicate that's been uncovered?

What were they doing to get their hands on the money? JENNY MCALLISTER: Recently, we saw the final sentencing of the last offender in Operation Pegasus. This was a very long-running investigation.

There were 6 offenders, and they were collectively sentenced to more than 31 years in jail. Now, there were claims made against participants who did not have a legitimate disability. There were claims made against participants' plans, who did not know that claims were being made against their plans, in the course of the raids against these individuals, police seized more than $2 million in suspected tainted assets.

These were things like gold bullion, cash, jewellery, luxury vehicles. These are organised efforts to defraud the scheme. RACHEL MEALEY: You say that criminal syndicates around the world increasingly see government as a high-value target.

Why is that? JENNY MCALLISTER: Criminal syndicates are getting organised and targeting government payment programs. We need to keep pace with that.

When we came to government, there were almost no payment controls at all around the NDIS. Now, this is a life-changing program for so many Australians. It has to operate with integrity, and it's why we are investing billions of dollars in improving our capacity to detect and disrupt this kind of behaviour.

And it's also why we've invested in law enforcement, so that the AFP, the Australian Criminal Intelligence Commission, can work with the NDIA to uncover and prosecute these offenders. RACHEL MEALEY: The blowout in the NDIS is a huge electoral issue also, isn't this crackdown aimed at saving seats at the next election? JENNY MCALLISTER: This work is squarely targeted at protecting people who use the NDIS every day.

Unfortunately, when we see fraud, we often also see neglect or exploitation. We can't allow that to continue. My concern is making sure that the NDIS operates safely for participants, and also that it retains its social license.

RACHEL MEALEY: All of this fraud policing has come at a cost though your Government has had to spend $1.3 billion to set up the systems to combat the fraud, including $800 million in this year's budget. That's a pretty hefty price. JENNY MCALLISTER: This is work that the previous Government should have done in the 9 years they were in office.

We have had to start almost from scratch, but the good news is that we are making these investments in digital payment platforms. We do expect to see much higher levels of compliance as a consequence of the investments we are making, and I want the community to know that we're doing that. I also want any would-be criminal to understand that if they see this scheme as a target, they can expect to receive a knock on the door from police.

RACHEL MEALEY: You spoke at the International Public Sector Fraud Forum. What are we learning from other countries about how cooks are ripping off governments? JENNY MCALLISTER: We have very good collaborative arrangements with counterparts from countries like the UK and Canada.

In speaking with some of those officials yesterday, it was clear to me that they value very much the collaboration they have with each other and with Australia. Right across the world, governments are finding that they need to invest more in understanding the identity of providers who make claims against government payment systems, and that digital systems can help governments very much in pursuing this work.

RACHEL MEALEY: Jenny McAllister, the Minister for the National Disability Insurance Scheme, thanks for joining AM. JENNY MCALLISTER: My pleasure, Rachel. Senator the Hon Jenny McAllister Disability and carers Accessibility We acknowledge the Traditional Owners and Custodians of Country throughout Australia, and their continuing connection to land, sea and community.

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