NDIS funding not enough to meet needs, says draft paper

The agency running $22bn NDIS will spend up to $900m a year on housing but never own, build housing stock.

Senator Mitch Fifield in Senate question time. Picture: Kym Smith.

The agency running the $22 billion national disability insurance scheme will spend up to $900 million a year on housing but has ­declared it will never own or build housing stock, according to a draft discussion paper.

The paper, circulated to state and territory governments and ­obtained by The Australian, ­attempts to “ring-fence" direction for the NDIS agency and is at the centre of a squabble over responsibilities between state and federal governments.

The NDIS agency forecasts spending between 3 and 4 per cent of the total of every person’s NDIS funding package — $660m to $880m — annually on housing, which the Productivity ­Commission factored into its modelling.

Because funding comes from individual support packages, the agency is still working out how much is available to spend during the trial phase and what projects should be piloted before full launch.

Nor does it yet know how the money will then be distributed but it agrees this amount will “not be sufficient to meet the needs of all participants”.

“The agency is seeking long-term collaboration and partnerships with governments, the housing sector, families, disability service providers, churches, social finance and philanthropy,” the paper says.

“In particular the (agency) is seeking to play a catalytic role; looking for scalable and innovative models in which it can co-­invest to unlock new housing options for scheme participants.”

The paper makes it clear the agency will “not directly own any housing stock and will also not borrow funds to invest”.

In one flagged option, the paper suggests investing in housing with families of people with severe disabilities.

“The agency could provide an opportunity to work towards overcoming barriers to families and carers contributing capital to shared equity models, including encouraging family members and carers to contribute to a participant’s housing where possible and appropriate,’’ it says.

The Productivity Commission’s 2011 modelling suggested ­almost 16,000 people would need accommodation help when the full scheme begins around 2019-20 and increased their package costs by 12 per cent to account for this.

But the commission’s report noted there were 15,700 supported accommodation places for people and another 6500 young people living in aged care homes with disabilities. “The Productivity Commission’s total funding for participant support packages was sufficient for all the current people living in supported accommodation (15,700), including an increase to the current stock of supported accommodation by 12,000 places,” the paper says.

The NDIS agency says it is possible to help more people than modelled by the commission if it uses the money available to spur investment elsewhere.

“NDIS funds for housing must add to existing funding obligations and responsibilities of all governments,” it says.

“The funds from the NDIS need to be ring-fenced with a very clear line of sight between the agency and the housing it is contributing to for participants.”

Up to 120,000 people would need some form of housing assistance under the full scheme, ­according to the sector.

Assistant Social Services Minister Mitch Fifield said the paper was a draft only.

“The paper ... broadly reflects the commonwealth’s approach to these issues. Further policy work with the states is required prior to finalisation, and this is occurring through the COAG Disability ­Reform Council,” he said.