Bill Shorten’s new NDIS deal placates states’ fears they were being sidelined about how the scheme would be reformed, but the hard yards to agree what disability supports each level of government will be responsible for outside the scheme, and the cost, are still to be done.
In clearing the concerns of the states that, as Shorten himself put, “we would just do everything by federal ministerial diktat and that they would have no say”, the NDIS Minister has had a significant win. States were opposed to the bill proceeding as late as a week ago, now they are on board.
The bill will take important steps to rein in costs in the $42bn scheme as the government aims to meet an 8 per cent cost growth target by 2026, and with the Coalition on side with bringing greater cost control into the scheme it may pass through parliament as early as Thursday.
Shorten acknowledged there was more to work to do on costs with the states, but the new arrangements would strengthen the process. “The states are anxious that somehow a whole lot of people on NDIS would end up being the responsibility of the state,” he said. “That was never the intent and they are satisfied that is not the intent.”
One effect of the new laws will be to kybosh participants using up their plan budget early and then receiving a top up, which has been responsible for about $2bn of extra scheme costs in the year to February.
Another is to create a checklist clarifying what supports will and, more interestingly, won’t be funded by the scheme. While this is deeply contentious among disability advocates who fear unintended consequences, it is a necessary step to put more guard rails around the spending of public money.
The lists are designed to ensure participants aren’t hitting up the taxpayer for items unrelated to their disability. A comprehensive list of “outs” in the current draft includes things like home repairs, washing machines and holiday accommodation.
They are still out for public consultation, so what accompanies the legislation may still be changed ahead of royal assent 28 days after its passage in parliament.
Even then, the list will be transitional, as the states have a say in the final version. But the Albanese government wants to get cracking on the change as they consider it too urgent to wait.
The new state-federal agreement would see any disagreements on NDIS rules resolved more quickly and by a majority rather than the current unanimous basis. They also can now be potentially escalated to prime minister and premier level.
But there is a parallel process going on, the negotiation between the state and federal governments within national cabinet on what “foundational supports” are required for Australians with disability who don’t qualify for the NDIS.
Some of those supports will become the responsibility of the states, such as how children with milder levels of autism or developmental delay are supported in mainstream settings such as schools. National cabinet will consider the issue again in December.
There is still work to do on both negotiations, which may have some influence on each other.
More Coverage
Might as well close it: Chalmers’ big call leaves fund without a future
It’s Jim Chalmers’ big chance to put his loopy ideas about ‘reinventing capitalism’ to become a ‘values-driven’ system into practice. Labor has never really liked the Future Fund because it’s a reminder of Peter Costello’s success.
Chalmers’ $230bn Future Funnel for favoured projects
Jim Chalmers is overhauling the investment mandate of the Future Fund to drive capital into Labor’s agenda, in a major shift in the role of the sovereign wealth fund established by the Howard government.