Proposed changes to the National Disability Insurance Scheme (NDIS) form part of a major savings measure designed to tip $36.2bn back into the federal budget over the next four years. The proposals, revealed on Thursday, will slash funding for some services, even if participants could be left with a funding gap.
Key Changes to NDIS Eligibility and Funding
The legislation establishes a legal framework to determine who can access the NDIS, focusing on people with "substantially reduced functional capacity" measured by a standardised tool. Participants must exhaust "all appropriate" treatment options before entering the scheme. Those receiving support from other services, like workers compensation, may be excluded.
Plan reassessments will be narrowed to moments of "significant and ongoing" change in needs. Funding considerations will now include sustainability and equity. Plans can be suspended if participants are unreachable, and revoked after 90 days of no contact.
New Powers for the Health Minister
The health minister, Mark Butler, will gain authority to reduce funding for entire support categories, set pricing caps, and change NDIS rules without state or territory approval for 12 months. This includes targeting social and community participation activities and daily activities within the capacity building funding pool.
Potential Funding Gaps for Participants
The government acknowledges that funding for some supports may be less than the actual cost, creating a gap. The goal is to limit the scheme's growth to an average of 3.6% until 2030, saving $36.2bn.
Next Steps
The bill is in parliament and will be sent to an inquiry due to report in June, with at least two public hearings. Details are still being worked out with a technical advisory group. Butler stated that differentiated pricing will be implemented, with specifics to be developed over time.
