ALP tells states to step up with autism funding
Federal Labor has challenged states to match its $2bn autism support plan amid warnings the NDIS reforms could leave thousands of families stranded without services.
Federal Labor is challenging the states to rise to the moment and match its $2bn plan to get autistic children off the NDIS, as economists declare it is crucial Health and Disability Minister Mark Butler’s landmark reboot succeeds, both to save the scheme and repair the budget.
Mr Butler’s call to action comes as experts warned there would be “a lot more” for Labor to do beyond limiting eligibility to the scheme, should the government wish to meet its revised targets for NDIS annual growth of between 4 and 6 per cent.
Trimming the growth of the NDIS from its almost 11 per cent annual growth rate to 8 per cent by 2027, and then by a further percentage point each year until stabilising at 5 per cent, would slash almost $86bn from the scheme’s bill over the next decade, the Budget Office’s modelling shows.
Under this assumption, the NDIS would cost the federal budget $85.1bn in that year, well below the current projection of $107.4bn, the analysis shows.
KPMG chief economist Brendan Rynne said that while a slimmed down NDIS would not “in and of itself” save the budget from running into deficit, “it’s certainly going to help”.
“It could be one of the key measures that continues to help arrest the increase in government spending that’s been quite substantial now for the past decade,” he said.
Former Treasury official Stephen Anthony, who was last year appointed by then NDIS minister Bill Shorten to chair a review of the scheme’s pricing, said further focus was needed in areas such as competition between providers.
“These are fundamental to be addressed if we are going to get supply and demand in order and control the growth of the scheme,” Mr Anthony told The Australian, adding he was still waiting to hear from the government in regards to “all the issues” raised by the probe.
“Unless the government addresses all drivers on both sides of the market, its (growth targets) can’t be achieved,” he said.
“The government has made a good start, but it has to keep going.”
The Australian on Wednesday revealed Queensland and other states were not briefed ahead of Mr Butler announcing the NDIS changes, with Liberal and Labor premiers alike expressing their “disappointment” over the lack of consultation and concern over the level of support they would need to provide those kicked off the scheme.
NSW Premier Chris Minns said the announcement marked a “significant change” to what was agreed by national cabinet in 2023, while a Victorian government spokeswoman said the move was “contrary” to the nature of the deal with the commonwealth.
“We are disappointed with a lack of consultation from the federal government about these proposed changes, and we await further details on the changes,” the Victorian spokeswoman said.
“This is contrary to what national cabinet agreed – to jointly design and fund additional foundational supports.”
South Australian Premier Peter Malinauskas said that his state would be monitoring “very closely” the implications to the commonwealth “preventing young people with autism going on the NDIS”.
“Where will they be getting services instead? And that’s something we have to monitor very carefully, because that burden will have to go somewhere, and the funding needs to be allocated accordingly and states don’t have that at the moment,” he said.
As part of his announcement on Wednesday, Mr Butler said the commonwealth would stump up $2bn for a program to service children with mild autism and developmental delay, called Thriving Kids, but stressed the states needed to come to the table.
“I committed $2bn on behalf of the commonwealth yesterday over four years,” he told 2GB on Thursday morning.
“The commitment by national cabinet was that states would match that.
“Obviously, not each of the states would do that, but collectively the states would put in $2bn to that as well.”
It follows national cabinet agreeing in December 2023 that the NDIS could not remain the “only lifeboat in the ocean” for disabled Australians, and particularly children with autism, with the commonwealth and states striking a deal to fund a different system of mainstream health and education supports.
This system, known as foundational supports, would be funded by a $5bn commitment from the federal government and a matched $5bn in funding from all of the states and territories.
The $2bn for Thriving Kids is part of the commonwealth’s $5bn fund, with the remaining $3bn yet to be allocated.
The tension between the states and the commonwealth over the issue of funding for foundational supports raises questions over the yet to be agreed National Health Reform Agreement, which is a deal dictating the funding states receive to run their hospitals that was originally tied to the delivery of foundational supports.
In comments that indicate NHRA negotiations could become more protracted after Mr Butler’s NDIS announcement, a spokeswoman for Mr Minns said the Albanese government needed to now “table a new NHRA proposal for consideration”.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout