Health Minister Mark Butler has announced major changes to the National Disability Insurance Scheme (NDIS).
The Government has repeatedly flagged concerns about the rising cost of the scheme, which was projected to cost $46.2 billion in the 2025/26 financial year.
Butler told the National Press Club on Wednesday the plans of every person on the NDIS will be re-assessed from 2028, with a view to moving 160,000 people with “lower needs” to other supports by 2030.
Background
The NDIS provides support and services for Australians with disability.
This includes access to community services, such as doctors, and assistance for necessary support, such as vehicle modifications.
It was launched in 2013, with the intention of supporting 410,000 people.
There are now more than 760,000 Australians who receive support from the NDIS.
Under 25-year-olds represent more than 60% of active NDIS participants.
Around 22% of recipients are zero to eight-years-old.
The most common primary disability of NDIS recipients is autism (43%).
The other most common primary disabilities are intellectual disability (13%), and developmental delay (9%).
Speech
In his speech to the National Press Club,
Butler noted the widespread fraud of the NDIS by what he called “shonks and rorters”.
He said fraud-prevention efforts have failed because of “the design of the scheme itself”.
Butler reiterated the Government’s concerns about the growing cost of the NDIS, and said: “We have to make sure it’s sustainable now and for future generations.”
Here’s what’s changing, by the numbers:
100%: The proportion of recipients whose plans will be re-assessed, with Butler aiming to start this process by January 2028.
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Removal from the scheme will be determined based on a person’s symptoms. Those with lower needs will be moved to “other supports”.
600,000: The number of people the Government wants on the NDIS by 2030, meaning at least 160,000 people currently on the scheme will lose access.
2%: How much the Government will increase its spending on the NDIS every year until 2030. Currently, the annual rate of inflation is 3.7%.
$26,000: The average amount the Government wants to allow recipients to spend on accessing social and community participation activities each year. This figure is in line with spending in 2023.
Opposition
Shadow NDIS Minister Melissa McIntosh said the Opposition wanted to help the Government reduce fraud, but raised concerns about Butler’s other proposals, including the re-assessments.
McIntosh said a woman had told her she had needed to prove to the NDIS that “she did not have legs”.
“Does this mean she has to re-prove that she no longer has legs so she can get the funding that she desperately needs?” McIntosh asked.
Greens Senator Jordon Steele-John, who uses a wheelchair, called the speech “frankly terrifying”.
Steele-John called out the cuts to social and community participation budgets.
“[These are] supports that enable disabled people to spend some time outside, in the community, sometimes an hour a week. And now those supports are on the chopping block.”
The Government will need the support of either the Coalition, the Greens, or minor parties and independents to pass some of the proposed changes.
Aged care
Butler also said the Government would allocate $3 billion in funding to aged care in the upcoming Budget.
This funding is intended to cover:
- 5,000 extra beds in aged care facilities each year
- 20 new dementia care facilities
- Making home supports free, such as in-home carers to help people shower and dress.
The funding will partly come from reducing the tax rebate the Government pays on private health insurance for Australians over 65, which is currently higher than the rate for younger people.
