Coalition comes out swinging against NDIS price cuts

The Coalition is demanding Labor delay any changes to NDIS pricing by at least three months after ‘failing to properly consider’ the implications of recent price cuts.

A dispute has broken out between the Albanese government and the federal opposition over the time frame for cutting the amount NDIS service providers charge participants in the federal scheme.

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A move to slash maximum fees service providers such as physiotherapists and dietitians can charge NDIS participants has been blasted by the Coalition, which is demanding Labor delay any changes by at least three months after “failing to properly consider” the implications of the price cuts.

In a letter to Disability Minister Mark Butler, opposition NDIS spokeswoman Anne Ruston and assistant opposition NDIS spokesman Phillip Thompson raised the alarm over what they called a “completely insufficient” time frame and lack of consultation on the matter.

“These changes fail to properly consider the nature of disability service delivery, as well as the fixed costs associated with travelling to the NDIS recipient’s location, irrespective of the length of the applicable therapy,” the letter, which has been seen by The Australian, reads.

“Furthermore, these significant changes have been announced with just two weeks’ notice. We consider this time frame is completely insufficient to allow providers and recipients to make the necessary adjustments to service delivery arrangements, especially consider­ing many of the impacted providers are small businesses.”

The decision by the National Disability Insurance Agency to cut hourly price limits for physiotherapists by $10 and dietitians by $5, resulting in the services costing $184 an hour and $189 an hour respectively – while also slashing travel subsidies to allied health providers by 50 per cent – is part of ongoing work to make the $50bn-a-year scheme more sustainable.

The letter, sent on Thursday, marks a significant intervention from the Coalition, which has declared on several occasions that it supports the government’s efforts to rein in the costs of the scheme.

Opposition NDIS spokeswoman Anne Ruston. Picture: Martin Ollman/NewsWire

“We are calling on you as minister to instruct the NDIA to defer these changes by at least three months to allow further consultation, planning and any potential redesign of these changes, in the best interest of NDIS participants,” the letter signed by Senator Ruston and Mr Thompson, reads.

“The opposition will be monitoring the impact of these changes and holding the government to account for any detrimental outcomes to NDIS participants stemming from the rushed approach to these changes.”

Mr Butler defended the pricing cuts earlier this week, which he said reflected “detailed analysis” of the care sector and the desire to bring the prices charged to NDIS participants for services in line with what average Australians were paying.

“We want to make sure that NDIS participants are not paying above the odds for therapy and for their support,” he said.

“We want to make sure that taxpayers are getting value for money for this significant investment that they’re making into this groundbreaking scheme.”

Assistant opposition NDIS spokesman Phillip Thompson. Picture: Shae Beplate

As part of the market analysis, the NDIS therapy limits were found to exceed broader market rates by up to 68 per cent in some cases.

“Data confirms that people with disability have been paying ‘NDIS premiums’ for certain therapies, while those same services are being delivered broadly to other Australians at lower rates,” the NDIA said.

Mr Thompson told The Australian on Thursday he was particularly concerned with the cuts to transport allowance arrangements, which he accused the government of changing on “very short notice”.

“The Albanese government has clearly failed to consult with the sector, and they have failed to understand the needs of business and service recipients. It is another disappointing example of arrogance from this government,” he said.

“It will be almost impossible for NDIS providers and participants to make the necessary adjustments to their service delivery arrangements in such a short time period, especially considering many of the impacted providers are small businesses.”