Manual compliance is putting NDIS providers at risk: Here’s what to do instead
- Rachel Riley
- May 14
- 3 min read
The compliance landscape for NDIS providers has entered a new era - one marked by heightened scrutiny, evolving regulatory expectations, and growing demand for operational transparency. But many providers remain stuck in manual systems ill-equipped to meet the complexity of today’s requirements.
The cost of doing so is rising; not just in inefficiency, but in real exposure to financial, reputational, and legal risk.
If you're still relying on spreadsheets, email chains, or legacy file folders to manage your compliance duties, you’re not only behind - you’re exposing your organisation to serious risk. The sector requires systems that are purpose-built to meet the demands of modern governance, risk, and compliance (GRC).
The compliance burden is going from paperwork to pressure cooker
In our NDIS Provider Outlook Report 2025, we found that over 60% of providers cited 'regulatory changes' as likely to have the biggest impact on the sector in 2025.
In late 2023, over $1.6 million in fines were issued as part of the NDIS Commission’s compliance crackdown. Yet, 50% of them have not modernised their systems, still relying on a mix of spreadsheets, consultants and fragmented software to manage compliance and risk, with 25% relying entirely on spreadsheets—a method prone to human error. And 21% report their risk and compliance frameworks need urgent improvement (NDS State of the Disability Report).
This trend is increasingly unsustainable. Administrative errors are a leading contributor to compliance failures across regulated sectors, including disability care. With 81.5% of NDIS provider revenue spent on workforce costs, even minor operational inefficiencies can become a critical financial risk (StewartBrown).
The reality is this: manual systems are no longer fit for purpose. They may feel familiar, but they are increasingly fragile in a world of higher compliance expectations.
Non-compliance is just one risk
While some providers are upgrading their processes incrementally, a growing number are taking a bolder step: adopting purpose-built GRC platforms that provide complete visibility and control across compliance, risk, and operational domains.
Manual compliance systems are already failing in three critical areas:
Data integrity: Disconnected spreadsheets, duplications, and human error create unreliable compliance records.
Audit readiness: Providers face urgent scrambling before audits instead of being able to generate real-time evidence from a centralised system.
Risk escalation: Without integrated governance structures and incident oversight, critical issues often go unreported or unresolved - leading to penalties, investigations, or funding disruptions.
These aren't theoretical risks. In 2024, several mid-sized providers faced sanctions or contract terminations after failing to produce evidence of compliance during NDIS Commission audits - despite delivering high-quality frontline services.
A future-ready compliance strategy starts with purpose-built GRC
NDIS providers ready to act are adopting dedicated GRC platforms designed specifically for the complexity of care environments. These systems provide a strategic foundation for financial resilience, risk oversight, and regulatory alignment.
Here’s what a fit-for-purpose GRC system enables:
End-to-end compliance tracking: Manage requirements like restrictive practice reporting, safeguarding, and workforce screening from a central source, with real-time alerts and audit-ready logs.
Built-in risk registers and financial controls: Identify funding shortfalls, cost leakage, and underperformance across SIL services or workforce utilisation.
Integrated incident and event management: Ensure compliance with WHS and participant safety regulations while reducing legal exposure and response delays.
Policy and version control: Reduce admin burden while improving assurance that staff are always working with the latest standards and documents.
Reduce risk, restore control
In a sector where the stakes are high and the margins tight, relying on manual compliance systems is no longer viable. As regulatory scrutiny intensifies and funding models evolve, providers need more than good intentions; they need tools built for the complexity of care.
Purpose-built GRC software offers a way forward. By consolidating compliance, risk, and audit functions into a single, intelligent system, providers can reduce exposure, improve oversight, and shift from reactive firefighting to proactive management.
That’s where platforms like Drova GRC come in. Designed specifically for the NDIS environment, Drova gives providers real-time visibility across compliance, finances, and workforce risks. Let us help you stay audit-ready, financially resilient, and focused on delivering quality care.
