The NDIS on this trajectory is not sustainable

The National Disability Insurance Scheme, a globally unique program, turned eight last weekend. That all states and territories and the commonwealth united across party lines to create this scheme says so much about what is wonderful about Australia’s federation and our people.

We united on a multi-partisan basis to implement a truly national scheme to support Australians with significant and permanent disabilities with the opportunity to realise the same life aspirations as other Australians do – to work, to study, to engage with their communities, to have meaningful relationships, to live independently.

Today, more than 450,000 Australians are supported by the NDIS to do just this – and it is transforming their lives and that of their families and loved ones.

When I became the federal ministerial custodian of the NDIS three months ago, I was grateful for the opportunity to work with participants and the disability community to make the scheme the best it can be. It took only a couple of days to see the NDIS reform process, including the potential requirement for independent assessments, was causing real fear and anxiety for some participants.

Legislative reforms have been on pause since then as further consultation has taken place, including with my state and territory ministerial colleagues. This pause has allowed time to ensure that participants and peak bodies are more involved in this process.

During my consultations I have heard clearly that after eight years the scheme needs reform to make it a fairer one and to improve participant experience. And I’ve heard clearly that the reform process needs to be improved, not only for functional assessments, but also more widely.

In advance of Friday’s disability ministers meeting, all ministers have now received the outcomes of the National Disability Insurance Agency’s evaluation of the independent assessment pilot. We have also received the outcomes of the consultation conducted by the NDIA’s Independent Advisory Council.

The council’s report provides frank and valuable advice on a pathway for reform. It is clear to me that there needs to be greater collaboration and further consultation to deliver lasting reforms. I’m committed to fostering more trust across the sector and entering into greater collaboration.

What really resonated with me in these reports is the shared determination to learn from and build upon the experience so far. There is common ground on the practical improvements that can be made to functional assessments to ensure they are reasonable, fair, fully informed and respectful.

This includes appropriate assessor experience, skills and conduct; training and practice guidance developed in partnership with the disability community; the use of pre-existing information; and the ability for post-assessment review by participants.

It is clear more time is needed to get the functional assessment model right, and I’m optimistic we will find a pathway back to multi-partisanship. But while more consultation is necessary, action is also required. The stark fact is that the scheme is on track in the latest federal budget to overtake the cost of Medicare, from $28.1bn this year to $33.3bn in 2024-25. Without action, the Scheme Actuary forecasts the cost will further escalate to $40.6bn in 2024-25. In the past two federal budgets, Australian taxpayers have already provided an additional $17.2bn to fund participant plans.

These are serious sustainability issues that we face and there is no single lever to pull to place the scheme on a sustainable long-term growth trajectory.

This public debate is so much more than simply numbers in the Budget Papers. The 450,000 participants, their families and support workers are counting on us to get this right so the scheme is the best it can be and is sustainable for many generations to come.