Federal budget 2023: NDIS cost growth target ‘key to survival’
Disability advocates are relieved Jim Chalmers backed in the long-term future of the NDIS in the budget.
Disability advocates are relieved Jim Chalmers backed in the long-term future of the NDIS in the budget, with some accepting that setting an annual cost growth target was a critical step to scheme sustainability.
With budget figures revealing the National Disability Insurance Scheme will cost $35bn this year, rising to $56bn by 2026-27, the government has agreed with the states to set a cost growth target of 8 per cent by 2026, down from the current 14 per cent.
Budget projections show the NDIS will cost about $470m less through to 2026 than the Treasurer forecast in his first budget in October.
Advocates were worried the state-federal accord on scheme costs was tantamount to imposing a cap, which would fundamentally change the design of the NDIS.
While Dr Chalmers said the government would be looking to “moderate the growth in costs” of the scheme, budget documents confirmed it would stay demand-driven, providing “reasonable and necessary” supports to the almost 600,000 participants
“Following recent concerns, we’re buoyed that the 8 per cent growth target for the NDIS is a target and not a cap, and that the NDIS will remain demand-driven,” People With Disability Australia president Nicole Lee said. “However, it is important that the community is given an ongoing commitment that their choice and control over access to essential supports is protected.
“People with disability fought hard for essential supports from the NDIS. To maintain and build stronger trust, it’s crucial the government delivers essential supports in a demand-driven way.”
National Disability Services chief executive Laurie Leigh supported the cost growth target as critical for scheme sustainability.
“Government must find the right balance to ensure people continue to receive the supports they need, whilst managing the sustainability of the scheme and a vibrant disability sector,” Ms Leigh said. “Setting an annual growth target, which doesn’t change the demand-driven nature of the scheme, cut participant supports, or impact access to quality and safe services makes good business sense.
“Scheme growth needs to be seen in the context of the economic contribution the NDIS makes to the Australian community and overall economy.”
The budget commits an extra $733m over four years for measures to improve the scheme’s effectiveness. More than half the funds were earmarked for capacity building within the National Disability Insurance Agency, which administers the scheme.
One of the measures of success of the NDIS is whether participants are being supported to find employment. The results to date have been less than optimal, a fact recognised in the scheme’s quarterly progress reports.
Adelaide-based 25-year-old Zac Colton is an NDIS participant and part-time content developer at The Growing Space, producing online content to help people with a disability navigate their lives and their interactions with the NDIS. He receives market wages with no government subsidies.
He contributes both behind and in front of the camera, and is known for his professional on-camera work.
Mr Colton lives with an intellectual disability and Kabuki Syndrome, a congenital disorder that manifests with some distinct facial characteristics.
His NDIS package, along with his parents’ love, encouragement and financial backing, has allowed him to develop the skills to work in a professional job, earning “proper money”.
“It means I have money to buy myself stuff. I am able to get out in the community. I like catching up with friends, going to the movies, going to people’s houses,” he said.
Mr Colton’s NDIS spending has helped to prepare him for work and study, and is helping him as he shoots for his next goal, to move out of his parents’ home.
It has included funding to learn to get around on public transport, important for getting to his TAFE course in IT, and for job readiness.
He has also been receiving support to learn how to budget, and how to cook, in preparation for life outside the family home.
“I’m looking forward it. I’ll be living more independently. It’s an exciting thing to think about,” he said.
Mr Colton is contemplating a big career step, “I’m doing a Certificate III in IT, and I’d love to end up teaching people IT at TAFE … people with disability and everybody else.”
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