Australian Government Overhauls National Disability Insurance Scheme Amid Soaring Costs
The Australian government has unveiled plans to revamp the National Disability Insurance Scheme (NDIS), aiming to rein in costs that have ballooned to AU$48.5 billion in 2024-25.
The scheme’s growth has been deemed unsustainable, with forecasts suggesting it will cost taxpayers AU$52.3 billion in 2025-26, surpassing the country’s defence budget.
Health and NDIS Minister Mark Butler announced the changes at the National Press Club in Canberra, stating that the scheme has strayed from its original purpose of supporting people with permanent disabilities.
Butler emphasized the need to refocus the NDIS on its core objective, ensuring sustainability while maintaining support for those who need it most.
The proposed overhaul involves removing children with mild autism or minor developmental delays from the NDIS, as they are not considered to have permanent disabilities.
This move is expected to help curb the spiralling costs, which have been driven in part by the growing number of children with autism entering the scheme.
According to a review initiated by former NDIS Minister Bill Shorten in 2022, the government aims to reduce the scheme’s growth rate from 22% to 8% per annum.
Butler acknowledged that even this target may not be sustainable in the long term, necessitating a comprehensive rethink of the NDIS’s funding model.
The NDIS currently supports approximately 740,000 Australians, with projections indicating this number will reach 1 million by 2034.
The government’s reforms are designed to ensure the scheme remains viable while providing essential support to those with significant and permanent disabilities.