The Federal Court has imposed a record-breaking $2.5 million penalty on disability services provider Lifestyle Solutions for serious failures that left residents and support workers exposed to violence and abuse in a Central Coast group home.
A Home in Crisis: Systemic Failures at Hakone House
In a landmark ruling, the Hunter-based registered charity was fined for 96 contraventions of the NDIS Act and a further 1,811 breaches of the NDIS Reportable Incident Rules. The case centred on Hakone House in Woongarrah, where five NDIS participants with complex needs lived between June 2019 and October 2021.
Justice Abraham found the home was not a safe environment. Residents, one of whom had complex communication needs, suffered horrific injuries including being bitten on the face and arm, put in headlocks, and having hair torn out. Support workers were also victims, enduring being bitten, punched, spat on, and having objects thrown at them.
The court heard incidents were so severe that staff were sometimes forced to lock themselves in rooms or evacuate residents from the property. On two occasions, a resident required medical attention from a GP for her injuries.
Unreported Incidents and a Culture of Neglect
Beyond the physical violence, Lifestyle Solutions failed to report other serious incidents to the NDIS Quality and Safeguards Commission within mandated timeframes. These unreported events included cases of neglect, serious injury, sexual misconduct, unlawful sexual conduct, abuse, and even one death.
Justice Abraham was scathing in the judgement, stating that violence and abuse in supported living settings is never acceptable and must not become normalised. "The residents were entitled to be safe and protected, but they were not," Justice Abraham said. "These issues were not managed or reported on adequately."
The provider admitted it did not take all reasonable steps to prevent further violence or respond appropriately to the abuse occurring under its watch.
Landmark Penalty Sends a Strong Message
The total penalty of $2.5 million is the highest ever imposed by the Federal Court in proceedings brought by the NDIS Commission. It comprises $2 million for failures to comply with NDIS Practice Standards and the Code of Conduct, and $500,000 for failures to report serious incidents. Lifestyle Solutions must also pay $150,000 in legal costs.
NDIS Quality and Safeguards Commissioner Louise Glanville welcomed the decisive ruling. "Participants have the right to feel safe, secure and respected at all times," Commissioner Glanville said. She emphasised that failure to report incidents leaves participants at serious risk and hinders regulatory oversight.
The manager responsible for the facility at the time also admitted to 13 contraventions of the NDIS Act.
This case sets a powerful precedent, underscoring the non-negotiable duty of care owed to some of Australia's most vulnerable citizens and the severe consequences for providers who breach that trust.
