Australians relying on the National Disability Insurance Scheme (NDIS) will be stripped of their right to an independent external review of their funding packages under a major overhaul of the system, a Senate estimates hearing has learned.
Foundational Supports and the End of External Appeals
Officials from the National Disability Insurance Agency (NDIA) confirmed to the hearing that participants moved onto a new model of support, known as "foundational supports," will have no recourse to the Administrative Appeals Tribunal (AAT) to contest the dollar value of their plans. This represents a fundamental shift in the rights of participants.
The revelation came during questioning by Greens senator Jordon Steele-John. NDIA deputy chief executive, Mark Townsend, explicitly stated that for those in the foundational supports pathway, "there is no external review mechanism for the quantum of funding." The only external review available would be on the narrow question of whether a participant was correctly placed into the foundational supports tier in the first place.
A "Rights-Based Scheme" No More?
This change marks a significant departure from the original principles of the NDIS as a rights-based scheme, where participants could challenge decisions about the reasonable and necessary supports they were entitled to. Senator Steele-John sharply criticised the move, arguing it effectively creates a "two-tiered system" where some participants retain full appeal rights while others do not.
The government, represented by NDIS Minister Bill Shorten, argues the new system is designed to be simpler and less adversarial. The foundational supports model is intended for people with lower support needs, offering more standardised packages. However, critics fear this will leave vulnerable individuals without a crucial safeguard against inadequate funding decisions made by the agency itself.
Graeme Head, the NDIS independent reviewer, noted his report had recommended the government clearly explain any reductions in review rights. The government has agreed to this recommendation in principle.
Implications and Ongoing Concerns
The shift raises profound questions about accountability and participant agency. Without the threat of an independent external appeal, advocates worry the NDIA will have unchecked power to determine funding levels, potentially leaving participants stranded without necessary care and support.
The estimates hearing also highlighted other pressing issues within the NDIS:
- The scheme is now projected to cost $48.8 billion in 2024-25, with growth slowing but costs still rising.
- Minister Shorten acknowledged "unacceptable" delays in resolving AAT cases, with some participants waiting over two years for outcomes.
- A major IT system failure in October 2024 caused widespread disruption, preventing plan approvals and payments. The NDIA has apologised for this incident.
As the government pushes forward with reforms aimed at sustainability, the removal of key appeal rights for a cohort of participants stands as one of the most contentious changes, sparking debate about the future balance between system management and individual entitlement.
