NDIS changes ‘retrogressive’ and out of step with review, MPs say

Lead

The Albanese government's proposed overhaul of the National Disability Insurance Scheme (NDIS) has drawn sharp criticism from state and territory disability ministers, disability advocates, and human rights bodies, with warnings of 'material harm' to participants and concerns that the changes are 'retrogressive' and inconsistent with earlier commitments.

The proposed legislation, which aims to curb the rapid growth of the now-$50 billion scheme, would see hundreds of thousands of people removed from the NDIS over the coming years. The government says the changes are necessary to slow growth, crack down on fraud, and restore the scheme's 'social licence,' but critics argue they will leave vulnerable Australians without adequate support.

Coverage Comparison

Reporting from ABC Australia and The Guardian — World highlights a broad consensus of concern among stakeholders. State and territory disability ministers, in a joint submission to a Senate inquiry, accused the government of pushing reform that 'goes beyond and contrasts with' previous review recommendations and is 'inconsistent with commitments by all governments' made at national cabinet in January. They warned of 'significant projected participant exits' by 2031 without 'clearly defined alternative supports,' creating a risk of unmet need and cost-shifting to state systems not equipped to handle increased demand.

The NDIS reform advisory committee, in its submission, admonished the changes, stating that the bill 'does material harm to current and future participants,' misrepresents the founding intentions of the NDIS, and 'inverts' the 2023 NDIS review on which the government relies. The committee, co-chaired by El Gibbs and Dougie Herd, argued that savings could be achieved through provider integrity, fraud enforcement, and pricing reform rather than cutting support services.

The Australian Human Rights Commission also urged the government to reconsider, citing a 'clear risk of adverse and unintended human rights impacts.' A Labor-led joint human rights committee, in a 57-page report, questioned the human rights implications of winding back access for more than 200,000 participants, stating that the measures 'appear to be retrogressive' and would limit human rights.

Disability advocates, meanwhile, welcomed a pause to the bill after a Senate inquiry was granted an eight-week extension. George Taleporos, chair of advocacy group Every Australian Counts, said it was critical the bill received 'the proper scrutiny it always deserved,' adding that giving people with disability and their families just two weeks to respond was 'ridiculous and disrespectful.'

Key Claims

• The proposed changes would remove hundreds of thousands of people from the NDIS over the coming years. Reports vary on the exact figure: some sources cite more than 200,000 people over four years, while others mention about 241,000 by mid-2031 or about 300,000 overall. The government's own modelling, as reported, shows about 241,000 people would be removed by mid-2031, bringing total participation down to 600,000.

• The changes would save more than $36 billion over the next four years, according to reports.

• The NDIS now supports more than 774,000 participants and is growing at 11.3 per cent annually, as reported.

• State and territory disability ministers warned of 'material harm' and the risk that people with disability could end up in hospitals or other inappropriate settings if alternative supports are not defined.

• Disability advocates welcomed the Senate inquiry extension, calling the original two-week consultation period 'ridiculous and disrespectful.'

• The Australian Human Rights Commission urged the government to reconsider, citing potential 'adverse and unintended human rights impacts.'

Perspectives

Albanese Government: The government maintains that the changes are needed to slow the rapid growth of the NDIS, crack down on fraud, and restore the scheme's 'social licence.' NDIS minister Mark Butler has doubled down on passing the legislation, according to reports, despite widespread criticism.

States and Territories: Disability ministers from all states and territories agreed that curbing the scheme's growth was important, but warned that this goal should not come at the expense of participant safety, wellbeing, and life outcomes. They criticized the lack of meaningful consultation and the concentration of power in the Commonwealth minister.

Disability Advocates and Human Rights Bodies: Groups such as Every Australian Counts, the NDIS reform advisory committee, and the Australian Human Rights Commission argue that the changes are dangerous, lack alignment with the 2023 NDIS review, and would cause 'material harm' to people with disabilities. They have called for a redrafting of the bill in 'genuine partnership with the disability community.'