Major Reforms Announced to Bolster National Disability Insurance Scheme

In a groundbreaking move, the Australian government is set to inject $10 billion into a new initiative aimed at addressing the needs of children with mild autism and early developmental disorders. This decision follows a comprehensive review of the National Disability Insurance Scheme (NDIS), which emphasized the necessity to focus on those with significant and permanent disabilities.

The review, commissioned by Government Services and NDIS Minister Bill Shorten to curb cost overruns, recommends a fundamental shift in the participant journey. It advocates for eligibility based on functional impairment rather than medical diagnosis, leading to the scrapping of a list of medical diagnoses ensuring NDIS access within five years.

With developmental delays and autism now accounting for 12% and 35% of NDIS participants respectively, the new Commonwealth-state funded scheme, to be phased in from 2024, aims to address foundational issues for these conditions. Costing an estimated $10 billion over five years, the scheme will rely on a 50:50 funding partnership between the states and the Commonwealth, resembling the approach used before the establishment of the NDIS.

To combat cost escalation and inconsistent decision-making, the review proposes a tougher eligibility test and a new needs assessment process. However, these recommendations may face resistance from the disability community, given past concerns about impersonal assessments.

The overhaul also includes measures to enhance service provider standards, combat overservicing and fraud, and ensure transparency in the scheme’s transactions. A dedicated deputy commissioner for quality in a new National Disability Supports Commission will monitor these efforts.

In response to difficulties in identifying fraud in the $42 billion scheme, the review suggests implementing an enhanced near real-time payment system. Cash reimbursements for services will be phased out over time, and services and products supplied to NDIS recipients will be subject to price caps set by an independent authority.

Government Services and NDIS Minister Bill Shorten expressed confidence that these reforms would “restore trust, ensure sustainability, and give participants a better experience and more control.” The review, compiled by scheme architect Bruce Bonyhady and public servant Lisa Paul, encompasses 26 recommendations with 139 supporting actions, all intended to create a more inclusive and fairer Australia for people with disabilities.

More to come, stay tuned.