NDIS needs cost control, not the politics of subs

As politically seductive as it might be to link the proposed AUKUS budget costs to the need to rein in spending on the National Disability Insurance Scheme, it is nonsense to suggest people with disabilities will, in effect, be paying for our new nuclear-powered submarines. Managing the costs of defence and the disability scheme are separate issues: the reality is that the NDIS cost blowouts must be addressed, irrespective of the Albanese government’s decision to invest in our national security.

That imperative is underlined by figures showing that both the numbers seeking NDIS support and the cost of that support are increasing. Australians have known for some time that they have a problem with the NDIS, which was an outstanding policy development and one that this newspaper has always supported. But the intent and the reality of the NDIS have diverged, with the unpredicted and continual escalation of the cost of the project to the national budget. Analysis of monthly data shows that an average of 6000 people are added to the scheme each month, contributing to an average increase in costs of $75m every month.

The government does not need the excuse of funding the AUKUS subs program to streamline the NDIS but, as Opposition Leader Peter Dutton suggests, the NDIS and aged care are two budget lines that need urgent attention. One doesn’t have to agree with the Greens that we are mortgaging our future with a $368bn plan to transform our defence capabilities across the next 30 years to acknowledge the government must be transparent about the funding implications for other sections of the budget.

Realistically, the figure Australians should focus on is that released by Jim Chalmers on Tuesday when he said the estimated $9bn in spending during the next four years would be “completely offset” by other defence provisions and savings. For a start, there will be $6bn “saved” from Australia’s original plan to buy subs from the French. That leaves $3bn, and the Treasurer is confident that can be drawn from changing priorities in the defence budget. That is easily said but more difficult to do given Defence’s traditional capacity to argue its own book very successfully. But AUKUS is indeed transformative and gives our leaders a real opportunity to clean up the defence budget.

Cleaning up the NDIS will be a more complex exercise, given the sensitivities about cutting any assistance to people with disabilities. But common sense, rather than sentimentality, should direct the government; there are cost blowouts that are unsustainable and need to be addressed. At the head of the queue is autism and the spectacular increase in children qualifying for NDIS assistance. Few would question the value of early intervention programs in helping children and their parents cope with what can be an enormously difficult condition. But, just as in defence, it’s a question of priorities.

Autism is a catch-all phrase for a spectrum of behaviours, and our society will have to make some decisions about where to draw the line on assisting those diagnosed with the condition. Recent revelations that some parents are paying more than $5000 to obtain a diagnosis for their children to access the NDIS are startling but not unexpected given the challenges facing desperate families.

NDIS Minister Bill Shorten has promised to reform the scheme and ensure “every dollar gets to the people who need it most”. He has targeted “provider fraud and waste”and awaits the results later this year of the independent review into the scheme.

The budget pressures are obvious but they are not insurmountable; good sense and rigour are needed to manage the subs and the disability scheme.