The NDIS is in need of repair, says a newly-published Grattan Institute report. Photo: File.
The National Disability Insurance Scheme is in trouble and must be saved, but that doesn’t mean it needs more money thrown at it, according to a newly-released study into the service.
The Grattan Institute has released its latest report, Saving the NDIS: How to rebalance disability services to get better results, saying the scheme’s future is at stake because it has grown too big too fast.
The report urges costs be reined in, but done in a way that ensures disabled Australians can get the help they need.
The analysis shows the problem lies in how existing funding is allocated, rather than it being a question of needing to spend more money.
The scheme cost nearly $42 billion in 2023-24 and is expected to cost more than $58 billion by 2028.
It grew by about 24 per cent a year on average from 2019-20 to 2023-24 and is now one of the biggest pressures on the federal budget.
In 2011, the Productivity Commission estimated a mature NDIS would serve 490,000 people.
“But in fact, the scheme is now supporting more than 700,000 people and that number is projected to pass a million by 2034,” the Grattan Institute states.
“The number of adults in the scheme is only slightly higher than originally expected, but the number of children is nearly double.
“Yet most disabled Australians don’t qualify for the NDIS and there is little support for them outside the scheme.”
The Institute’s disability program director and lead author of the report Sam Bennet said: “The problem is the NDIS has become the only game in town: you either get an NDIS package, or you get minimal mainstream services.
“That means disabled Australians have an incentive to try to get into the NDIS – and once people get in, they tend not to leave.”
To address this issue, federal, state and territory governments agreed in 2023 to fund new foundational supports, which are disability-specific supports outside of individual NDIS packages.
These were supposed to be operational by 1 July 2025, but there is no word of them.
The report calls on the Federal Government to make four significant policy changes.
“First, the NDIS needs firmer boundaries so it is clear who the scheme is for and what needs it is intended to meet,” it says.
“Second, the way the NDIS manages claims needs to change so funding is allocated fairly and consistently. People should have more choice and flexibility in how they use their NDIS funding.
“Third, the federal, state and territory governments should finally establish a strong tier of ‘foundational supports’ to ensure disabled people get appropriate supports when and where they need them.
“The existing NDIS budget should be used to fund foundational supports from within the same funding envelope.
“And fourth, Australia needs a new National Disability Agreement, to clarify the relationship between all aspects of the disability policy landscape and to facilitate cooperation and greater accountability between governments.”
The Institute says its blueprint to rebalance disability services would reduce NDIS payments by about $12 billion over the next 10 years and create further savings of $34 billion over the same period by not requiring new money to fund foundational supports.
“The NDIS is a vital part of Australia’s social fabric. It must be saved. Our report shows how,” Dr Bennet said.
The report states that while governments have acted, reforms are not happening quick enough.
“The NDIS provides life-changing support to hundreds of thousands of Australians with significant and permanent disability,” it says.
“But not all people with disability are well served by the scheme and many miss out altogether.
“At the same time, the costs of the NDIS have risen far higher and faster than expected, putting pressure on government budgets …
“To put the NDIS on a stronger footing, governments need to follow through on current reforms and go further.
“A more balanced system – with clearer boundaries, fairer plans and broader support options beyond individualised funding – is essential to ensure the NDIS delivers effectively and remains affordable into the future.”
Original Article published by Chris Johnson on Region Canberra.
