Compliance Failures Cost $1.1M

$1.1M Penalty Sends a Clear Message: Compliance Is Non-Negotiable

The recent Federal Court decision to impose a $1.1 million penalty on Oak Tasmania is the largest ever for a Tasmanian NDIS provider and a wake-up call for the entire sector.

The case highlights what happens when providers fail to meet their obligations under the NDIS Practice Standards, Code of Conduct, and Reportable Incidents Rules. Beyond the financial penalty, the judgment underscores the serious risk to participant safety when compliance systems break down.

What Happened?

Oak Tasmania admitted to:

1. Six contraventions of the NDIS Practice Standards and Code of Conduct

2. 474 contraventions of the Reportable Incidents Rules

The failures included:

1. Care management plans not being followed

2. Staff not adequately trained to meet participants’ needs

3. Medical devices and medication not properly administered

4. An adolescent not properly supervised

5. Hundreds of serious incidents not reported within required timeframes

The Court found these failures caused or risked causing harm “of the utmost seriousness” and deprived participants of timely treatment and responses.

Why This Matters for Providers

This case reinforces that:

1. Participant safety is non-negotiable
   Providers must deliver competent supports and services at all times.

2. Reporting obligations are critical
   Serious incidents must be reported within specified timeframes to the NDIS Commission.

3. Compliance failures have consequences
   Beyond financial penalties, non-compliance damages trust and exposes participants to harm.

Lessons for Providers

To avoid similar risks:

1. Ensure care plans are followed and regularly reviewed

2. Train staff to meet participant needs and understand compliance obligations

3. Report serious incidents promptly and accurately

4. Maintain clear audit trails for all compliance activities

How Centro QMS Helps You Stay Compliant

Manual systems and scattered processes make it easy to miss reporting deadlines or lose track of responsibilities. Centro QMS provides:

1. Automated workflows for incident reporting

2. Role-based responsibilities for accountability

3. Audit-ready registers for incidents, feedback, and improvements

4. Dashboards for real-time compliance visibility

Start planning now to strengthen your compliance systems for 2026.
Book a demo today and see how Centro QMS can help you protect participants and avoid costly penalties

Compliance is not optional. It is the foundation of safe, quality supports.