Cuddle therapy out, holidays nixed: here’s what NDIS won’t pay for any more

Shonky therapies, lifestyle purchases and health and education services that should be covered by state governments have been struck out of the National Disability Insurance Scheme in the first official list outlining what taxpayers will and won’t fund.

Drugs, alcohol and sexual services are explicitly ruled out in new laws, while spending funds on rent, food and holidays is no longer possible under the list published by outgoing NDIS Minster Bill Shorten on Tuesday, before it comes into effect on Thursday.

“At long last, there will now be a central list of what NDIS participants can spend their money on and what they can’t spend their money on,” Shorten said.

Massages and manicures are off the list. Credit: Getty Images

“We don’t pay for the rent, rental bonds, home deposits, mortgages. We do not pay for donations, tithes, gifts or political contributions. We do not pay for fines, penalties or court ordered amounts. We do not pay for spa baths, saunas, steam rooms.

“We don’t pay for groceries in the ordinary course of events. We don’t support a range of therapies from tarot cards, clairvoyance, wilderness therapy, cuddle therapy.”

A Senate estimates session earlier this year heard dodgy providers had used the cover of NDIS support to take participants to ATMs to withdraw cash for illicit drugs. Others had encouraged people to use their funding for holidays.

Shorten said that would no longer be possible. “If someone tries to start taking advantage of NDIS participants or taxpayer money, this is now clear. There’s stuff which is just, should never really been in, but now no chance of it getting on,” he said.

Other prohibited therapies include reiki, shamanic healing, hypnotherapy, reflexology, aromatherapy, yoga and sound therapy, and animal therapy.

Shorten said it would also make clear what should be paid for by other taxpayer-funded systems. “The NDIS is not going to pay for home-schooling. We’re not going to pay for the stuff which the school system is meant to do,” he said.

“We’re not going to pay for prescription drugs you can get on the [Pharmaceutical Benefits Scheme]. We’re not going to pay for items which you can find on Medicare.”

The list of NDIS supports has been streamlined into 36 categories that describe what help is available. For example, for children who need early intervention for developmental delays, it will fund allied health therapies from professionals such as speech pathologists or occupational therapies. It won’t fund therapies that support the child’s general development needs or teaching aids to help their school achievement.

People will get funding to help them manage health conditions that arise from their disability, such as continence, wound care, nutrition and seizures, while people who suffer a spinal cord or brain injury will also receive allied health support.

But mainstream health services, such as ambulance services and “hospital in the home” help, are not included.

El Gibbs, from the Disability Advocacy Network Australia, said people were “very concerned about how many people with disability may end up owing large amounts of money to the NDIS, after these new rules come into place.”

The changes follow last year’s NDIS review, which called for the scheme to return to its original purpose of providing for Australians with permanent disabilities, and demanded state and territories improve their offerings for people with less intense needs. The scheme is one of the government’s biggest budget pressures and, without reform, has been on track to cost $100 billion within a decade.

Shorten said there would be a 12-month transition period for people whose plans currently paid for things that would be ruled out in future.

The new list was made possible under laws passed by the parliament in August. It is the first in a series of reforms that will include an assessment process for participants, which scraps the current diagnosis list. People will also start receiving longer plans, of up to five years, with capped budgets that release money in intervals.

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