Mark Butler, the Minister for the National Disability Insurance Scheme (NDIS), confirmed this week that negotiations are ongoing. This includes encouraging states and territories to be more active participants in these conversations. Butler’s sat in an orange Ikea chair in a parliamentary board room. He marked the clock running down on negotiations to conclude for a different layer of provisions that would work in the space past the NDIS system.
The recent Grattan report has at least given us the opportunity to revive that debate. In face of this unfolding disaster, officials have begun to explore reforming the boundaries and scopes of the NDIS. This new effort is a positive step toward shaping a more fiscally sustainable system, while still providing people with disabilities the support they need.
Grattan Report Recommendations
This was echoed in the recent Grattan report, which argued for “firmer boundaries” to define who is intended to be served under the NDIS. This recommendation addresses worries over the program’s explosive expansion. It has recently exploded to almost 10 percent a year, well above the Albanese government’s target of 8 percent.
Further, the report supports a shift in claim management to improve outcome uniformity. It calls for a new National Disability Agreement to define the roles of each level of government in delivering support more clearly.
Alistair McEwin, a senior fellow at Grattan, noted that the proposal is not about excluding certain groups from the NDIS unnecessarily.
“What we’re saying is that supports for some children with developmental delay and people with psychosocial disability can be provided more effectively, more quickly and more fairly in other state or territory-based schemes,” – Alistair McEwin, Grattan senior fellow.
This shift in thinking is indicative of a higher-level aim to improve service provision while leaving the underlying structure of the NDIS intact.
Urgency for Change
Butler said the Commonwealth is focused on closing funding negotiations so work can start as soon as possible. His remarks bring into a great focus the urgent need for reforms to the NDIS. We need to make sure that there’s enough support for people to exit the program successfully.
Melbourne University associate professor Sue Olney stressed the importance of having extensive support systems ready as she shared the story of a successful transition.
“The transition is critical. It’s not enough to focus on changing the NDIS unless there are other supports in place for people to move to,” – Sue Olney, associate professor at Melbourne University.
Butler stressed the need for federal and state partnership to execute these ideas. This collaboration is key to ensuring people with disabilities receive the support they require.
Economic Considerations
A 2021 report by thinktank Per Capita reported the economic costs of the NDIS. It discovered that for each dollar invested in the program, $2.25 was paid back into the economy. Per Capita has calculated that its proposed smart, bold blueprint could save $12 billion over the next decade. On top of that, it might unlock another $34 billion by ending the need for new money on foundational supports.
Sam Bennett, Grattan’s disability program director, pointed out that the current structure has created a scenario where individuals must rely solely on NDIS packages or minimal mainstream services.
“The NDIS has become the only game in town: you either get an NDIS package, or you get minimal mainstream services,” – Sam Bennett, Grattan’s disability program director.
This emphasis on redesigning the NDIS aligns with broader objectives of ensuring sustainability and maintaining its original purpose: to support participants and their families effectively.
