Millions set to fall through NDIS net

The massive national disability insurance scheme may have trouble providing one of the most crucial parts of its service.

NDIS chairman Bruce Bonyhady. ‘The ILC is critical to the sustainability of the NDIS and the equity and culture of the scheme.’

The massive national disability insurance scheme may have trouble providing one of the most crucial parts of its service within budget because it is still being built, sources say.

Last month, the agency running the $22 billion scheme ­released a second “commissioning” draft of its plans to build the second tier of support for the NDIS to help millions who miss out on the 460,000 places that will receive uncapped help based on need.

This second tier of support — which the Productivity Commission forecast would affect four million people with disabilities — was imagined as a sort of clearing house for everyone who isn’t eligible for an individual support package.

A centrally funded arm now called Information, Linkages and Capacity (ILC) building at the NDIS will shunt would-be users on to mainstream services, community organisations and other groups for help.

“The states and territories are at different stages of their transition to the NDIS. Some have ­recently signed bilateral agreements for the roll out of the NDIS in their state or territory, but not all the details have been agreed,” the draft paper says.

“These agreements will have an impact on the way that ILC is rolled out and on the time frames. ILC will therefore not commence nationally in 2016-17. Each state and territory will transition at a point that makes sense in relation to its broader transition to the NDIS.

“The different transition times for each state and territory will have an impact on our ability to fund national initiatives. The indicative ILC budget will build up slowly over the next few years to approximately $132 million when full roll out of the NDIS is complete in 2019-20.”

The money does not include a separate pool of cash that will fund Local Area Co-ordinators around the country. “ILC is not intended to replace or duplicate mainstream services or everyday community activities,” it says.

“It is important to note, however, that reforms under way in a number of areas will have an ­impact on the way ILC is put into practice. This is particularly true in the areas of carer support, mental health, advocacy and aged care.”

A source told The Australian that the project to deliver ILCs, like the NDIS itself, risked either “running over budget or greatly disappointing people with ­disabilities”.

“Unfortunately, it is going to be one or the other,” he said. “There are good people with good intentions working on this, but the story is the same as the broader scheme. We’re building this as we go; we have been from the start and it’s not going to be right at the end.”

In November, NDIS chairman Bruce Bonyhady repeated a consistent refrain: that the ­entire NDIS would be a waste if the ILCs were not delivered properly. “The ILC is critical to the sustainability of the NDIS and the equity and culture of the scheme,” he told a Melbourne conference. Equity ­requires that the last person to ­receive an individual package ­receives little more than the people most reliant on the ILC.

“If this is not the case then people with a disability who are not eligible for an individual package will become more disabled, requiring more support in the future. This would make the NDIS less sustainable. Further, if those who do not qualify for an individual package do not receive the supports they need, they will need to prove how disabled they are in order to enter the NDIS.