Labor to rein in cost of NDIS by raising the bar for autism funding

The Albanese government will tighten access to the NDIS for autism clients after a report found access to the scheme was linked to soaring diagnoses figures.

The Albanese government plans to rein in the exploding cost of the NDIS by raising the bar for children with autism to gain access to the scheme.

It comes as a new report found the NDIS is responsible for the soaring number of kids being diagnosed with autism.

Discussions are under way with state governments on the need for changes to the eligibility criteria to join the scheme, set to cost taxpayers $42 billion this financial year and $90 billion by 2031.

To change the way the NDIS works, all of the states and territories must agree to new rules that will apply.

But it is understood the federal government has been exploring changes it can legislate if it is unable to reach agreement.

NDIS Minister Bill Shorten is looking for ways to rein in the cost of the scheme. Picture: NCA NewsWire / David Beach

A communique issued after a meeting of disability ministers this month flagged changes to the law when it said there was a need for “good legislation” and improving services to disabled people outside the scheme.

For several years governments have been concerned about the way courts and tribunals have interpreted the definition of “reasonable and necessary services” under the NDIS, which has led to taxpayers funding some rather eccentric options.

There is also concern about the way criminals are exploiting the NDIS.

Next month national cabinet will consider the review into the NDIS by academic Bruce Bonyhady and former bureaucrat Lisa Paul, which was commissioned by NDIS Minister Bill Shorten.

To achieve consensus the federal government may end up funding more services for children outside of the NDIS.

The government believes that intensive services for children with developmental delay will save money because fewer of them will then need to join the NDIS.

Bruce Bonyhady and an NDIS community forum in September. Picture: Alan Barber

Last week a report from academics at the ANU found a link between NDIS and a rise in autism diagnoses.

It found autism diagnoses in Australian children had increased significantly over the last decade — faster than Canada, the US and the UK, with the report’s author concluding the NDIS was “the key factor” in the difference.

Mr Shorten said the government would not be commenting until the review was publicly released following the next national cabinet.

“Our intention is to make the NDIS become a more human, less bureaucratic experience, and we want to make sure shonky service providers are given short shrift,” he said.

“And the NDIS will continue to champion early ­intervention for kids with severe disabilities to give them the best possible start in life based on the best practice and ­evidence-based support.”

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Originally published as Labor to rein in cost of NDIS by raising the bar for autism funding