The government's controversial NDIS bill passed the Senate on Tuesday night after "substantial" amendments were agreed in a deal between Labor and the Coalition. The amendments, introduced as part of backroom negotiations, were revealed by NDIS ministers Mark Butler and Jenny McAllister, who said 63 government amendments were made across both houses.
Government defends reforms as responsible
"This is responsible reform that protects the integrity of the scheme while keeping people with disability at the centre of the NDIS," Butler said. The bill passed the Senate at 8pm with the Coalition's support and will return to the lower house on Wednesday for a final vote before becoming law.
Among the amendments is a tweak to allow vulnerable participants whose budget is impacted by a new ministerial power – which allows the minister to slash funding from certain categories across all participants by up to 99% – to apply for more funding through a plan variation. McAllister explained that the government recognises the need to safeguard against risk to health and safety, particularly for those requiring 24-hour support. "We are establishing a new plan variation pathway for people who have high support needs," she said. "These participants will be able to apply for a plan variation within 90 days of a support determination applying to them."
Critics condemn ministerial powers and cuts
The ministerial power to reduce funding for support categories has been heavily criticised by the Greens, ACT senator David Pocock, and the disability community. In a Tuesday evening debate, Pocock welcomed the government amendments but said the broad ministerial powers to cut social and participation budgets in half from October remained the biggest "red line" for him. "While the bill is improved, I still can't support the bill," he said after the vote. "The indiscriminate cuts to social and community participation funding will cause harm and the unprecedented automated decision making powers granted to the NDIA make this bill hard to vote for in its entirety."
Greens senator Steele-John said the changes would impact people with disabilities who require support workers to go into the community. "This government, in this bill, will be cutting the supports currently available to enable a disabled person to go outside, maybe once or twice a week," he said. "The ripple effects of this will be terrible. The stress that it will create is beyond imagining."
Cost concerns drive reforms
The government estimates the $52bn-a-year scheme will have more than doubled in cost in a decade's time without intervention. The changes are expected to improve the federal budget's bottom line by $37.8bn over four years. McAllister said the government was concerned about the fast-rising costs. "I don't think the community broadly believes that a scheme that costs $100bn a year by the middle of next decade is sustainable," she said. "But that is the path we are on, unless sensible amendments are made."
The government's amendment does not exempt any participant from the broad funding reductions but gives those with high support needs a chance to remedy sudden financial shortfalls. The Coalition also secured amendments to create new criminal and civil penalties against anyone offering or providing kickbacks using NDIS funding. Aggravated integrity offences, including obtaining funds by deception, providing false or misleading information, intentionally destroying records, and abuse of position as a participant's nominee, will also be introduced.
The government's plan to pass the NDIS changes this week was almost postponed by the Coalition's ultimatum to bring tax law changes to close the "widow tax" loophole early. It is expected that the tax reforms, which include closing the loophole, will be voted on Wednesday morning.
