NDIS is the furthest behind schedule it has been since meltdown

The $22bn NDIS is the furthest behind schedule it has been since a computer system meltdown last year.

The $22 billion National Disability Insurance Scheme is the furthest behind schedule it has been since a computer system meltdown at the start of transition last year, even as it passes a milestone in signing up 100,000 people for individual support.

In June, the rollout was at 83 per cent of its 116,555 target, and cost pressures continued to place strain on staff of the agency running the scheme.

The details are contained in a quarterly report released today by the National Disability Insurance Agency.

The number of participants receiving support in June was 96,722, although Social Services Minister Christian Porter told The Australian yesterday that the figure since had broken through 100,000.

“One year into the national rollout of the NDIS we have 100,000 people with disability living more independent lives, ­accessing the services and equipment they need, participating in their communities, entering the workforce and contributing to the economy,” he said. “All Australians should be very proud of this landmark scheme that replaces a system where the level of support a person with disability received was determined by their postcode and the vastly different funding provided from all levels of government.”

The NDIA says some improvements have been made in addressing cost pressures, although it notes individual package costs are increasing above inflation, more people are approaching the scheme than estimated, fewer people are leaving it and there is a “mismatch” between benchmark package costs and what is actually approved for people in their plans.

One continuing cost driver is the “higher than expected” number of children entering the scheme. Although the number of children younger than six was stable in the quarter, there was an increase in those aged seven to 14 and new pressure emerging among those aged 15 to 18.

Almost two-thirds of all participants have an intellectual disability or autism, although there has been a sharp jump in the proportion of people with a severe mental illness impairing their day-to-day function — known as psycho­social disability — from 6 per cent previously to 8 per cent in the last quarter.

However, there are more people in the NDIS with a high level of function — 36 per cent — compared with those with “complex” disabilities, who account for 20 per cent of plans.

The federal government yesterday introduced into parliament its bill to raise the Medicare levy to 2.5 per cent, saying the $8 billion raised would be quarantined to pay for the disability scheme. However, Labor is opposed to the plan, despite having increased the levy when in government for the same reason.

The NDIS report says $7.3bn of support has been committed to people with support plans since it began in 2013 but only $3bn has been paid out so far.