More funding for disability services in schools and childcare

Federal and state governments have struck a deal on NDIS funding that will see more disability support provided outside the scheme, including in settings like schools and childcare.

A new state-federal deal will offer more disability services outside the National Disability Insurance Scheme.

State and federal governments will move to deliver more disabil­ity services outside the NDIS into areas such as childcare and schools in recognition of the need to restore the original intent of the $42bn a year scheme to support the most disabled people.

What these new “foundational supports” will entail and how much already cash-strapped governments can afford to spend remains unclear, with details to be worked out over coming months, national cabinet says.

In its final communique on Wednesday, national cabinet offered its initial response to a key NDIS review to be publicly released on Thursday, saying it would “work together … to restore the original intent of the scheme to support people with permanent and significant disability, within a broader ecosystem of supports”.

Anthony Albanese and state leaders remained tight-lipped on whether this would mean existing National Disability Insurance Scheme participants would be moved off the scheme after their circumstances were reviewed.

Prime Minister Anthony Albanese at a national cabinet meeting.

When asked whether people would come off the scheme following the reforms recommended by the review, the Prime Minister said: “The NDIS review will be released tomorrow. This is about capping growth at 8 per cent.”

The new national cabinet deal will see a 50-50 split in the future costs of new mainstream disability supports outside the NDIS, up to a cap on the states contribution in line with their extra health and disability reform spending commitment that ensures they remain financially better off.

The states have also agreed to contribute more to the growing cost of the NDIS, increasing their annual contribution from the current 4 per cent to match actual scheme growth, with an 8 per cent cap, commencing in 2028.

What exactly the new foundational supports entail will be determined by state and federal bureaucrats but will also need to be ticked off by federal and state treasurers.

South Australian Premier Peter Malinauskas said there was “a lot of work and detail” still to be delivered by the commonwealth.

“This (deal) will see negoti­ations occur between states and commonwealth over coming weeks and months … we do want to have seat at the table in those negotiations to make sure people don’t end up in a worse-off situation,” he said. “We’ll find out more tomorrow … when the review is released.”

South Australian Premier Peter Malinauskas.

The final report of the year-long NDIS review, co-chaired by disability advocate Bruce Bonyhady and former senior bureaucrat Lisa Paul, has been in the hands of state and federal leaders for more than a month, and will be released on Thursday.

It is expected to recommend extensive reforms to the way the scheme operates, in particular what is considered “reasonable and necessary” support provided to participants.

Victorian Disability Minister Lizzie Blandthorn this week said changes to the reasonable and necessary arrangements would mean changes to eligibility, meaning people now on the scheme could be taken off. Premier Jacinta Allen would not comment when asked whether her government still harboured such concerns following national cabinet.

Australian Federation of Disability Organisations chief executive Ross Joyce said the language of the Prime Minister and premiers around eligibility left him “very concerned”.

“We’ve already had some talks about autistic people in the last few weeks. We’ve also had heard some chatter about psychosocial might be another area not covered (by the NDIS) as well,” he said.

“We see a lot of concern about what exactly is going to happen.”