2024 Australian Federal Budget: Analysis for NDIS Participants and Providers

In the 2024 Australian Federal Budget, changes have been introduced to the National Disability Insurance Scheme (NDIS), aimed at reforming the system to be more financially sustainable and efficient. These changes will have a profound impact on both participants and providers of the NDIS. This blog post will explore the details of the budget, and discuss the implications for those involved in the scheme.

Cost Reduction Measures

The budget introduces several measures to reduce costs within the NDIS, with the aim of curbing the scheme's costs and improving its efficiency. These measures include reforms to target plan inflation, clarify entry pathways, and specify what items and supports can be funded by participants. This effort is crucial in ensuring the long-term financial sustainability of the NDIS.

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Legislative Changes

The "Getting the NDIS Back on Track" Bill has been introduced into Parliament as part of the budget, marking a significant step towards future improvements to the NDIS. This includes enabling better early intervention pathways for people living with psychosocial disability and children under 9 years old, improving how participant funds are set, and strengthening the NDIS Quality and Safeguards Commission.

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Financial Investment

The budget allocates $468.7 million over the next four years to ensure the scheme is "back on track." This investment is aimed at improving the management of the scheme and ensuring it provides the necessary supports to participants. However, no amount of money has been earmarked to enact the results and recommendations from the recent NDIS Royal Commission. More information on this can be found in this video here.

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Focus on Fraud Prevention and Dodgy Providers

The government is also taking steps to crack down on fraud and exploitation within the NDIS. This includes measures to ensure taxpayer funds are used appropriately and that participants receive the supports they need. Services Australia is set to receive $23.5 million for the purpose of probing dishonest providers, as well as an additional $45.5 million for establishing an advisory committee tasked with assessing the cost-effectiveness of various support services. More than $240 million will be allocated towards enhancing technology aimed at identifying fraud, eliminating inefficiencies, and safeguarding NDIS participants. A decrease in plan inflation is projected to lead to a reduction of $14 billion in spending on the disability insurance scheme over a four-year period compared to previous estimates.

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Foundational Supports and Eligibility Criteria

The government is set to achieve savings of $14.4 billion through legislation in parliament, which aims to lower planned inflation. This legislation will implement the reforms proposed in last year's NDIS review, including the establishment of a framework for providing "foundational supports" for individuals with less severe disabilities.s.

People with mild forms of autism and developmental delay will no longer be automatically included in the scheme once "access lists" containing eligible medical diagnoses are removed within five years.

The budget projections suggest that combined NDIS spending by state and federal governments will amount to $48.8 billion this year, and are expected to increase to $60.8 billion by 2027-28. Anticipated spending would be higher if it were not for upcoming alterations in plan management, with Treasury predicting a slowdown in the growth of the federal government's contribution to the scheme at 9.2% over the next ten years.

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Insight PBS and Ethical Billing

At Insight PBS, we are committed to ethical billing practices within the NDIS framework. Our guidelines ensure that every hour billed is reflective of actual support provided, promoting transparency and accountability. We emphasise the importance of both avoiding over billing and under billing to maintain industry standards and safeguard participant funding.

Our billing practices include a variety of support activities such as planning, researching, and direct service delivery, all documented according to the NDIS Pricing Arrangements and Price Limits. To support our practitioners in adhering to these principles, we provide structured guidance and encourage open communication with team leaders to address any billing concerns. Our approach not only helps in preventing burnout but also in sustaining the high standards of service delivery that Insight PBS stands for.

You can see our full Ethical Billing Policy here.

Sources: Australian Financial Review? ABC? The Guardian?

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