The federal government has unveiled a major overhaul of the National Disability Insurance Scheme (NDIS), aiming to reduce its annual cost from $70 billion to $55 billion by the end of the decade. NDIS Minister Mark Butler announced changes including a digital payment system, mandatory registration for most providers, and standardized assessments of functional capacity to determine eligibility. The plan also involves removing an estimated 160,000 participants from the scheme in coming years.
Some advocates have welcomed the crackdown on fraud and unregistered providers. Allan Fels, former chair of the Australian Competition and Consumer Commission, said the government appears to have struck the right balance between financial management and protecting vulnerable participants. However, Ross Joyce from the Australian Federation of Disability Organisations expressed concern about the removal of participants, stressing that states and territories must provide alternative supports for those leaving the scheme.
One Perth mother, whose daughter with Down syndrome uses the NDIS for speech therapy and physio, acknowledged the scheme's costs are inflated. She cited a $20,000 six-day workforce preparation program, noting similar TAFE courses are virtually free. She supports more scrutiny of spending.
Minister Butler said changes to assessments will not begin until 2028, and further details on participant reductions will be developed with a technical advisory group and the disability community. The overhaul aims to preserve the scheme's 'social licence' while curbing spiraling costs.
