Canberra fund to soak up unspent SA NDIS money as users struggle with ‘unbelievably complicated’ system
SOUTH Australians on NDIS plans are using barely half the money allocated to them, leaving state taxpayer funds to be soaked up into a federal future fund.
SOUTH Australians on NDIS plans are using barely half the money allocated to them, leaving state taxpayer funds to be soaked up into a federal Future Fund.
Disability advocates say people are underspending because the National Disability Insurance Scheme is “unbelievably complicated” and it is difficult to find enough skilled carers or service providers.
Unspent money is not handed over to people on the scheme and the total value of the unspent funds is not known.
Human Services Minister Michelle Lensink told a parliamentary estimates hearing that SA’s utilisation of NDIS packages was about 55 per cent, compared to about 65 per cent nationally.
She said it was “not a great outcome for people” but she had raised it in “robust discussions” with the Federal Government.
Ms Lensink said she believed the problem would improve over the next five to 10 years as people became used to the system and the market better responded to demand. “Obviously, we are keen that people are fully using their plan and working towards full independence, choice and control,” she said.
The Federal Government provides a little more than half of the NDIS funding, and South Australia has committed $723 million when the scheme is fully operating.
Human Services Department acting chief executive Lois Boswell said the department had negotiated with the Federal Government for “some money” to be returned to the state.
The remainder was “sitting with the Commonwealth and they say that it is being put against Future Fund requirements for the scheme”.
Labor human services spokeswoman Nat Cook said the underspending likely “stems from a lack of clarity and understanding” of plans.
While she also believed the problem would improve over time as more people got used to the system, Ms Cook urged the State Government to negotiate further with its federal counterparts to ensure SA “gets the most bang for the state’s buck”.
“It is vital that this money is returned to South Australia to enable the government to reinvest in those people living with a disability,” she said.