Some participants could lose 50% of their budget for paying carers to accompany them to job or social programs<\/p>\n
Get our breaking news email, free app or daily news podcast<\/p>\n
The national disability insurance scheme, one of Australia\u2019s most ambitious social schemes, is undergoing a significant overhaul as the Albanese government looks to rein in costs and preserve its social licence for future generations.<\/p>\n
The Gillard-era program now supports more than 770,000 Australians with disability and is expected to cost $54bn this financial year after a series of imminent changes. Without any intervention, government forecast the NDIS would cost the budget more than $100bn by the mid-2030s. The bill aims to cut the number of participants to around 600,000.<\/p>\n
On Tuesday, the government agreed to 63 amendments in order to pass it through the Senate. There are a lot of changes on the horizon so let\u2019s break it down.<\/p>\n
First, let\u2019s begin with why the government says these changes are needed.<\/p>\n
The NDIS ministers, Mark Butler and Jenny McAllister, have said the scheme has become larger than ever envisaged and sensible reforms are necessary to return it to its original plan.<\/p>\n
The Labor ministers are referring to initial estimates from the Productivity Commission in 2011 forecasting the NDIS would support around 410,000 people with permanent and significant disabilities, and cost about $13.5bn a year.<\/p>\n
A second, more basic system of support \u2013 known as tier 2 \u2013 was initially recommended for the roughly four million other disabled Australians who wouldn\u2019t meet the criteria for personalised packages.<\/p>\n
Fifteen years later, the NDIS now supports more than 770,000 participants and costs more than $50bn a year. It is the second-largest social program after the aged pension.<\/p>\n
McAllister said on Tuesday night: \u201cThe government\u2019s concern is that a scheme that has too much fraud; is much larger than it was ever intended to be; is projected to cost more than $100bn a year by the middle of next decade; and doesn\u2019t always deliver the quality of service that we would expect for people with disability is a scheme that is at risk of losing its social licence.\u201d<\/p>\n
To pass the Senate, the government needed to strike a deal with the Coalition or the Greens. With the latter ruled out, the government introduced 63 amendments on Tuesday afternoon to pass the bill by the evening.<\/p>\n
One of the major criticisms from the Greens, crossbenchers and disability advocates related to a ministerial power to apply broad reductions in funding for certain categories regardless of a person\u2019s circumstances. For example, the government has said it will slash every participant\u2019s social and community participation budgets \u2013 funding typically used to pay for carers to accompany participants to job or social programs \u2013 by 50% from October.<\/p>\n
A government amendment on Tuesday introduced an avenue for participants with high support needs to be able to apply for a plan variation if their funding no longer covers 24\/7 care as a result of the funding reduction. This means those impacted can apply for a plan variation within 90 days of their plan being reassessed or renewed.<\/p>\n
Other amendments include clarifying the level of care expected from a parent to determine whether additional care should be provided through the NDIS; allowing prospective participants to continue receiving other compensation while awaiting an access decision; ensuring more transparency from the national disability insurance agency regarding debt recovery; and defining what undertaking \u201call appropriate treatment\u201d prior to applying for the NDIS means for applicants.<\/p>\n