Reforms to the National Disability Insurance Scheme will shave more than $1 billion from the growing cost of the ballooning scheme, according to new official projections, as the Government tries to steer it back toward a sustainable path. Source: The Australian.
The savings, revealed in the latest Annual Financial Sustainability Report (AFSR) projections, show the scheme is on track to meet targets agreed to by National Cabinet last year to curb annual growth to 8 per cent from 2026.
The cost of the NDIS had previously been projected in 2021 to grow by 23 per cent, sparking fears that, within the decade, it would overtake the pension as the single largest budget expenditure item.
The latest National Disability Insurance Agency annual report, due to be released today, containing updated AFSR projections, shows the scheme’s cost is expected to be $210.3 billion for the four years to June 2028.
This marks a 12 per cent reduction in previously forecast growth of 19 per cent, and represents a $2.3 billion saving on previous AFSR projections from June last year.
NDIS Minister Bill Shorten said the AFSR report confirmed the reform program aimed at moderating growth in the NDIS and ensuring it was returned to a sustainable financial position.
“The NDIS will continue to grow, but we had to make sure it worked better for all Australians and didn’t continue to grow at a rate of knots,” Mr Shorten said.
He said ensuring sustainability was never about cutting participants’ plans.
“What we have done is got much, much better at managing plan growth and ensuring every dollar is getting to the people for whom it was intended,” Mr Shorten said.
“While there is a lot of work to go, this is significant proof that the scheme growth and expenditure is stabilising and reducing where it needs to.”
The savings contained in the report have been attributed to the passing of the NDIS Amendment (Getting the NDIS Back on Track) Bill passed by Parliament on August 22. which not only sought to tighten eligibility requirements but also crack down on fraud.
FULL STORY
Bill relief: $1bn shaved from NDIS as Bill Shorten puts the scheme back on track (By Simon Benson, The Australian)
