NDIS reforms deliver $600m savings in FY2024

The number of participants coming onto the scheme has slowed, as the scheme scrambles to remain financial sustainable.

NDIS Minister Bill Shorten says reforms to the National Disability Insurance Scheme are starting to deliver financial savings. Picture: NewsWire / Martin Ollman

Cost growth in the National Disability Insurance Scheme has slowed, with total scheme expenses for the 2024 financial year $600m below the budget estimate, new figures show.

The latest NDIS Quarterly Report also notes that the number of participants coming onto the scheme has slowed, up by 8 per cent to 661,000 last financial year compared to 14 per cent the year before and 19 per cent in FY2021.

The report puts the scheme’s improving financial sustainability down to $1.2bn in additional program funding over the last two federal budgets to improve its financial sustainability and deliver a better experience for participants.

“Total scheme expenses for the 12 months to 30 June 2024 were $41.8bn (on an accrual basis). This is $600 million below the 2024-25 budget estimate,” the report notes.

It said key factors driving stabilising NDIS cost growth were a continuing trend of slower plan inflation, the decreased rate of new participants and more people exiting the scheme having built the capacity to lead a more independent life. Many of these were children who left after receiving early intervention supports.

NDIS minister Bill Shorten said his government’s leadership on scheme reform had led to “green shoots” of change.

“I welcome the NDIS investment coming in $600 million less than was forecasted and provisioned for,” Mr Shorten said.

‘The scheme is delivering better outcomes for participants and these reforms are having a positive impact on scheme sustainability.

“Our government is working to ensure the scheme is here for future generations of Australians with disability,” he said.

National Disability Insurance Agency chief executive Rebecca Falkingham agreed the new data revealed “positive gains this year”, but there was a lot more work to be done.

The Quarterly Report also showed a slowing of the number of NDIS participants coming onto the Supported Independent Living program, one of the scheme’s biggest cost drivers. The scheme paid $14bn in SIL payments in FY24. In 2022 it was $8.8bn.

Mr Shorten is continuing to negotiate with the Opposition and the states to push through a raft of legislative reforms to the NDIS aimed at further curbing scheme growth, with the states concerned the new arrangements would leave them responsible for an unspecified range of disability supports outside the NDIS.