Fight over numbers blowout puts NDIS deal under pressure

The number of people who would be eligible for the WA slice of the NDIS has been underestimated by at least 7000.

The number of people who would be eligible for the West Australian slice of the $22 billion National Disability Insurance Scheme has been underestimated by at least 7000, with a fight over that number stalling a return to the national project by the state Labor government.

Department of Social Services staff confirmed in a Senate estimates hearing yesterday that ­negotiations between the state and the federal governments had still not finished.

Under former premier Colin Barnett, the state decided it would run a parallel version of the NDIS which it would administer. But since Labor’s Mark McGowan swept to power seven months ago no final decision has been made on whether the state will join the national scheme.

In the original bilateral agreement, there was an estimate of about 39,000 people who would be eligible for the NDIS in WA.

But federalDepartment of ­Social Services group manager Helen McDevitt told the Senate hearing yesterday that that figure had blown out to up to 46,000 ­according to the Australian Government Actuary. “This is one of the negotiation points ... it is yet to be resolved,’’ she said.

The NDIS will cover anyone who is eligible, regardless of modelling, but the distinction is crucial because it will determine who picks up the bill for the extra numbers.

If the numbers are factored into a new deal, much of the cost will be worn by the WA government. If they are not, any cost overrun will be met largely by the federal government.

Department deputy secretary Michael Lye said, despite this, it was a matter for WA to “identify any obstacles in the process”.

The National Disability Insurance Agency, which runs the NDIS, confirmed a $3.5 million “virtual assistant” called Nadia will not be rolled out this year. “It would be a mistake to unleash Nadia on the public too soon,” the agency’s Stephanie Gunn told the Senate committee.

The Senate community affairs legislation committee also heard from the agency’s new chief executive, Robert De Luca, who said the agency has not been affected by a cap on public service ­hiring.

The agency employs 2127 staff, 1012 contractors and 2203 local area co-ordinators, and is “about 500-ish” full-time equivalent ­positions below a public service cap of 2460 places.

The NDIA has until the end of the financial year to catch up to the cap before it is ­increased again, but is struggling to find the right staff.

“We are going through a rapid period of growth and certainly we have a budget and we have constraints in that budget like anyone else,” Mr De Luca said. “We know we still have some gaps in capability, for example in the national office to run the full scheme. Things like finance, risk and HR.

“There are constraints in finding the right resources in the right locations.”