NDIS Provider Fined $1.9 Million Over Choking Death

A symbol indicates disability parking in Albany, Western Australia, on April 22, 2024. Susan Mortimer/The Epoch Times

NDIS provider Valmar Support Services has been fined over $1.9 million—the most significant civil penalty of its kind—after a disabled man died from choking on a toasted sandwich in May 2020.

The Federal Court found Valmar guilty of 24 breaches of the National Disability Insurance Scheme (NDIS) legislation, citing a failure to properly train staff at a residential home in Canberra.

The man, who was non-verbal and had multiple health conditions, including Prader-Willi syndrome—a disorder linked to excessive appetite—was supposed to have his meals cut into small pieces and be supervised while eating.

However, staff at the facility failed to follow these dietary requirements, leading to his tragic death three days after choking on a toasted salami and cheese sandwich.

Justice Elizabeth Raper, who presided over the case, described the incident as a “terrible event” and criticised Valmar for not providing the necessary support under the NDIS guidelines.

She noted that the penalty, although the highest ever imposed, was still relatively low given the seriousness of the breaches. She warned that future violations would likely result in more severe financial consequences.

Valmar has since implemented measures to improve staff training, compliance audits, and service delivery. The company had no prior breaches of this kind, which was taken into consideration when determining the penalty.

Increasing Scrutiny on NDIS Providers

The case against Valmar is one of several recent legal actions against NDIS providers for failing to meet their obligations.

Earlier in 2024, LiveBetter Services Ltd was fined $1.8 million after an NDIS participant, Kyah Lucas, died from severe burns sustained while receiving bathing support services. The court found that LiveBetter had breached the NDIS Act by failing to implement proper safety measures.

In another ongoing case, the NDIS Quality and Safeguards Commission has initiated civil proceedings against My Ability Australia Pty Ltd. The provider is accused of illegally installing CCTV cameras in a participant’s residence without their mother’s consent.

Despite later seeking permission, the provider allegedly continued surveillance, which only came to light when the footage was shared with a third party.

Stronger Penalties and New Reforms

In response to these failures, the federal government introduced legislative changes to strengthen compliance and increase penalties for negligent providers.

In October 2024, NDIS Minister Bill Shorten announced the “Getting It Back on Track” Bill, which includes significant reforms to enhance participant protections and improve service quality.

Under the new legislation, penalties for providers responsible for serious harm to participants will increase from a maximum of $400,000 to over $15 million.

Shorten said the reforms were necessary to ensure that participants receive the safe and high-quality care they are entitled to.

“We are taking decisive action to lift the standards of NDIS services and ensure that those who fail to meet their responsibilities face serious consequences,” he said.