Creates a new Commonwealth framework for giving money (arrangements or grants) to organisations that provide supports and services for people with disability outside the National Disability Insurance Scheme (NDIS) (see section 13).
Sets mandatory eligibility and ongoing conditions for any person or organisation that receives that money: they must be an “eligible person” (not subject to certain NDIS banning orders and, for some funded activities, holding a certificate of compliance), comply with a code of conduct, operate complaints and incident management systems, and meet other conditions (see sections 9 and 15).
Establishes a certification and accreditation architecture: the Secretary and accredited certification bodies can issue, vary or revoke certificates of compliance for regulated activities; accrediting authorities (approved by the Secretary) in turn accredit certification bodies (see sections 21–26).
Gives the Minister broad power to make, vary or enter funding arrangements and to impose additional funding terms in written funding agreements; the Minister can also take enforcement steps where statutory funding conditions are breached (terminate or vary agreements, publish information about breaches) (see sections 13–14).
Regulates information handling: entrusted Commonwealth staff must not use or disclose protected information except in specified circumstances; unauthorised use or disclosure carries a criminal penalty (up to 2 years’ imprisonment or 120 penalty units) (see sections 28–29).
Sourced from the Federal Register of Legislation (legislation.gov.au), CC BY 4.0.
Enables detailed rules and ministerial/Secretarial instruments to fill out the regime (code of conduct, compliance standards, alternative requirements, which eligible activities are “regulated activities”, determinations about information sharing, etc.) (see sections 11, 20, 23–24, 29, 36).
Who this affects
People and organisations that apply for, or receive, Commonwealth funding under this Act to provide disability-related supports or programs outside the NDIS (providers, not NDIS participants) — they must be eligible and meet ongoing statutory funding conditions (ss 9, 13, 15).
Key personnel and employees of those organisations: a banning order under the NDIS Act that applies to a person or to key personnel can prevent the organisation from receiving funding (ss 9, 15).
Accreditation and certification actors: the Secretary, accrediting authorities and accredited certification bodies who assess and certify providers (ss 21–26).
Entrusted persons (the Secretary, APS employees and other Commonwealth staff/contractors) who handle relevant information (ss 8, 28–29).
Why it matters — claimed purposes and practical effects
The Act’s stated objects include giving effect (in conjunction with other laws) to international disability rights instruments and expanding supports outside the NDIS while protecting the rights of people with disability (s 3). Practically, the Act:
Centralises Commonwealth funding decisions for many non‑NDIS supports and attaches uniform statutory conditions intended to protect recipients (ss 13–15). This creates administrative control over who gets Commonwealth funding (the Minister decides whether to make arrangements; the rules and Secretary decide which activities are regulated and how to certify compliance).
Creates compliance and certification costs for providers. To be eligible for funding for a “regulated activity” providers will typically need a certificate of compliance from an accredited certification body or (in some cases) from the Secretary (ss 9, 21–22). Those processes and ongoing systems (complaints, incident management) produce direct compliance costs and require governance by organisations and their key personnel (s 15(4)–(5)).
Generates governance and market structure effects. The Act establishes a three‑tier pipeline (Secretary approves accrediting authorities (s 25) → accrediting authorities accredit certification bodies (s 26) → certification bodies certify providers (s 21)). That creates a small market for certification/accreditation services and concentrated decision points where administrative discretion will matter.
Shifts some risk and discretion to the executive. Many details are left to rules and legislative instruments (which can set codes of conduct, compliance standards, alternative compliance routes, and specify which activities are regulated) leaving significant practical power to the Minister and Secretary (ss 11, 20, 23–24, 36).
Protects certain confidential information and criminalises misuse by entrusted persons; at the same time it authorises information sharing across Commonwealth agencies and with states/territories or courts in prescribed circumstances (ss 28–29). This balances privacy risk with operational needs but creates compliance obligations for staff and contractors.
Trade-offs, incentives and implementation risks
Who pays: Commonwealth appropriation funds pay the grants/arrangements; providers bear compliance costs (certification, complaints systems, incident management, reporting obligations) (ss 13, 14, 15, 21–22). The Act also allows reimbursement of certification costs in certain arrangements (s 13(6)–(7)).
Who decides: Minister (power to make arrangements and rules), Secretary (approvals, determinations, some certificates) and accredited bodies (certificate decisions). Delegation pathways permit functions to be carried out by senior public servants subject to limits (ss 31–32). This creates multiple decision‑makers with overlapping roles.
Incentives and substitution: The certification requirement may favour larger or better‑resourced providers who can pay for accreditation and administrative systems, potentially excluding small community organisations unless alternative compliance pathways or transitional determinations are used (s 9(2)–(4), s 24).
Concentrated points of administrative discretion: The Secretary’s and Minister’s powers to make rules, approve accrediting authorities, and determine regulated activities (ss 11, 25, 36) concentrate influence over market structure and standards in the executive branch; transparency of those instruments and the grounds for decisions will drive stakeholder costs and legal risk.
Compliance and enforcement: Breaches of statutory funding conditions allow the Minister to terminate or vary agreements and to publish breaches (s 14(6)). Publication powers create reputational risk for providers and are protected from civil suits if done in good faith (s 14(8)).
Implementation risk: Much of the regime comes into force through subordinate instruments (rules, determinations, approvals). If those instruments are delayed, the practical scope and operation of the Act will be uncertain (ss 20, 23, 24, 29, 36).
Key sections to note
Funding powers, eligible activities: s 13
Eligible person and transitional determinations: s 9