NDIS to polish up on financial sustainability

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National Cabinet has committed to efforts to reboot the National Disability Insurance Scheme.

This will ensure the NDIS can continue to provide life-changing outcomes for future generations of Australians with disability.

Whilst the Scheme remains demand-driven, the NDIS Financial Sustainability Framework agreed by National Cabinet will provide an annual growth target in the total costs of the Scheme of 8 per cent by 1 July 2026, with further moderation of growth as the Scheme matures.

The Framework will build on the immediate action the Commonwealth is taking with the NDIA Board to improve the Scheme and ensure its sustainability. The Commonwealth Government is investing more than $720 million over four years from 2023-24 in this year’s Budget to lift the NDIA’s capability, capacity and systems to better support participants.

These initiatives will help ensure every dollar goes to support people with a disability.

Minister for the NDIS Bill Shorten MP said participants and the sector were aware of the need for careful action to ensure the Scheme is looking after the people it was always intended for – people with significant and permanent disabilities.

“These reforms are about ensuring the future of the Scheme in the best interests of the participants and our reboot is making sure every dollar gets through to the people the Scheme was designed for, NDIS participants with severe and permanent disabilities.”

“After a decade of Federal Coalition government neglect, the NDIS and its participants were left neglected, but we will fix it and return it to its original intent,” Minister Shorten said.

“We will work together with people with disability and the sector to implement these initiatives to ensure we get it right and people with disability are with us every step of the way.

“We are going to improve how the Scheme works for participants, their families and the people who work in the disability sector.”

“We also look forward to receiving the final report of the independent NDIS Review.”

The more than $720 million investment in the NDIA’s capability, capacity and systems, developed with the NDIA Board, in consultation with the NDIS Review Co-chairs, includes 10 key initiatives:

1. Investing in better decision-making processes and planner capability for participants with specialised needs.

2. Moving to less frequent plan reviews where it makes sense and committing to participants that not spending budgets won’t affect future plans.

3. Improving lifetime planning approach to ensure plans are more transparent and flexible for life events. This includes the flexibility where participants do not need as much support at a stage of life but know that they can receive support as their circumstances change.

4. Better supporting participants to manage their plan within budget, including assistance from NDIA during the year and holding plan managers, support coordinators and providers to account.

5. Partnering with communities to pilot alternative commissioning to improve access to supports in remote and First Nations communities.

6. Working with participants and providers to trial blended payments to increase incentives for providers to innovate service delivery and achieve outcomes for participants and governments.

7. Establishing an expert advisory panel to list items to make it easier for participants to access proven evidence-based assistive technology and other supports.

8. Implementing preferred provider arrangements to leverage buying power of the NDIS.

9. Strengthening guidelines for planners on support volumes and intensity, and providing clear minimum standards of evidence for assistance with daily living.

10. Cracking down on fraud and non-compliance by funding, in addition to the Fraud Fusion Taskforce, 200 staff for two years and developing a business case for a new system to detect, prevent and reduce non-compliant payments.