Finance Minister Katy Gallagher expressed optimism about the progress made on a recent deal with the Coalition to reform the National Disability Insurance Scheme (NDIS). The proposed changes aim to cap the scheme’s annual growth at 8 percent, reduce the number of new participants eligible for the scheme, and alter the funding criteria.
Legislation related to these reforms had faced delays in passing through parliament due to the Coalition and Greens deferring the laws for further inquiry. However, Gallagher stated that a deal is close to being finalized.
“We are pretty close and very hopeful,” Gallagher told reporters in Canberra on Aug. 18. She emphasized the importance of controlling NDIS growth and preventing the scheme from rapidly expanding.
“I don’t want to pre-empt some decisions that have been taken in party rooms and the rest, but I’m hopeful that we should see that through this week,” Gallagher added.
Need for Reform
Following investigations into the NDIS, Minister for NDIS Bill Shorten highlighted the necessity for systematic reform in the disability support ecosystem. He identified spiraling costs as one of the six priority areas for reform.
The NDIS stands as the third-largest program in terms of total general government sector expenses. In 2023-24, the estimated expenditure of the NDIS was $41.9 billion (US $27.9 billion), with projected costs expected to reach up to $51.9 billion by 2025-26.
Shorten emphasized the need for better management of the NDIS, acknowledging concerns from state governments about unforeseen responsibilities that may arise. He emphasized the importance of providing a range of supports outside the NDIS for families and individuals with disabilities.
Furthermore, Shadow NDIS Minister Michael Sukkar mentioned that there were valuable changes proposed in the NDIS reforms. He expressed willingness to collaborate with the government to find common ground on these reforms.
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