NDIS overhaul: regional providers, psychosocial disability community await details

Federal government prepares NDIS overhaul amid concerns from providers and advocates

The federal government is set to announce changes to the National Disability Insurance Scheme (NDIS), with Health Minister Mark Butler expected to address the National Press Club today. The changes aim to bring the scheme's cost down to $55 billion by the end of the decade and move 160,000 people off the scheme, as reported by the ABC.

Mr Butler has described the scheme as one that "costs too much and is growing too fast," according to ABC reporting. The government has also announced a crackdown on fraud, an issue that has come under scrutiny following reports of billing irregularities.

Regional providers warn of closures

Regional disability service providers say smaller operators will not survive another round of changes, coming less than a year after alterations to funding models affected therapy pricing and travel allowances. Liz Martin, who started a disability service in Bunbury, Western Australia, after her son was diagnosed with autism, said the uncertainty was making it difficult for small businesses to stay viable.

"It's very hard to make a small business viable in the current climate, let alone adding the uncertainty of NDIS cuts happening," Ms Martin told the ABC. She noted that travel allowance changes had already made it harder for services to reach regional areas, and that the pressure on providers was immense.

Bec Shepherd, a mother of two children with disabilities, also expressed frustration, describing the changes as the "biggest slap in the face," according to ABC reporting.

Psychosocial disability community fears exclusion

Mental health advocates are calling on Mr Butler to end the "limbo" they say half a million Australians with psychosocial disability have been living in. According to ABC reporting, the Productivity Commission has identified about 500,000 people with moderate to severe psychosocial illness who do not receive support through the NDIS or other government-funded programs, with many state services collapsing after the scheme was created.

In 2023, federal and state governments agreed to create services outside the NDIS to support this cohort, but little has changed since, the ABC reported. The psychosocial disability community fears that people with mental illness could be diverted from the NDIS to state services that have not yet been established.

Ian Hickie from the University of Sydney's Brain and Mind Centre said he anticipated the government would ring-fence those already on the NDIS for psychosocial support, potentially diverting access to others in need.

State and territory expenditure would need to grow by up to $1.09 billion a year to meet existing gaps in support, according to ABC reporting.

Fraud crackdown highlights industry abuses

The ABC has reported on a "tsunami of rorting" in the NDIS, with estimates suggesting up to $8 billion a year is lost to fraud and inappropriate billing. The report highlighted the case of Katie-Lee Stoker, whose son Cooper's NDIS plan was billed for services not provided, including on a Sunday and a public holiday. One company charged more than $250,000 in less than two years, with Ms Stoker questioning many of the supports claimed.

John Dardo, head of integrity transformation at the NDIS, told a parliamentary inquiry that about 8.3% of the $45 billion in payments made last financial year could be attributed to "integrity leakage," a term covering everything from fraud to inadvertent non-compliance.

Key Claims

• The NDIS changes aim to bring the cost down to $55 billion by the end of the decade and move 160,000 people off the scheme.
• Regional disability service providers are concerned about their survival due to the changes.
• Previous changes to funding models affected therapy pricing and travel allowances.
• Federal Health Minister Mark Butler says the scheme "costs too much and is growing too fast."
• Estimated $8 billion a year in rorting and fraud in the NDIS.
• The NDIS Quality and Safeguards Commission has received complaints about providers.
• The federal government has announced a crackdown on fraud in the NDIS.
• NDIS changes may restrict access to psychosocial support.
• About 500,000 people with moderate to severe psychosocial illness do not receive support through the NDIS.
• Federal and state governments agreed to create services outside the NDIS to support people with psychosocial disability in 2023.
• State and territory expenditure would need to grow by up to $1.09 billion a year to meet existing gaps in support.