‘Foundational supports timeline not yet agreed to’: states
Foundational supports were meant to start with a phased rollout from July 1, but states are waiting until the federal government ticks off a five-year hospital funding agreement.
The ACT Labor government and other states are refusing to agree to a timeline for Anthony Albanese’s new system of services for people with milder disabilities until the federal government ticks off a five-year hospital funding agreement, bringing into doubt the chances of a deal being struck before foundational supports begin a phased rollout from July 1.
Days after the Prime Minister announced the government would give states and territories a one-off $1.7bn funding injection for public hospitals, rather than locking in a five-year agreement that had been in negotiations for more than 12 months, first ministers said the timing of support for disabled Australians outside the National Disability Insurance Scheme was yet to be settled.
The revelation makes it unlikely that a formal funding agreement will be reached on foundational supports – which are envisaged as a system of services for those no longer on the NDIS – before July 1, when the government said those supports would start being phased in.
“Timing for the implementation of new foundational supports will be confirmed when longer-term (hospital) agreements are reached,” an ACT government spokesman said.
“States and territories will work with the commonwealth to ensure that the NDIS continues to support people with disability during the development of foundational supports.”
Mr Albanese and Health Minister Mark Butler stressed last week that negotiations over the new system of services – to be funded on a 50-50 basis with states – were firmly on track, with foundational supports representing a key pillar of the goal to rein in NDIS growth from about 15 per cent a year to 8 per cent by mid-2026.
A Queensland Liberal government spokesman also warned: “The Crisafulli government won’t sign up for anything that short-changes Queenslanders. We will always fight for a fair deal for Queensland and we will continue to hold Canberra to their promises while long-term funding negotiations continue.”
Tasmanian Premier and new chairman of the Council for the Australian Federation Jeremy Rockliff confirmed the timeline for foundational supports would not be settled until the hospital agreement was finalised, warning it was primarily up to the federal government to support disabled Australians in the meantime.
“States and territories have reiterated the commonwealth’s responsibility in ensuring that the NDIS continues to support people with disability during the development of foundational supports,” he said.
The warning follows revelations in 2024 that more than 1200 NDIS participants were receiving letters every week informing them their eligibility must be reassessed, with half of those plans revoked.
Despite questions from The Australian on Thursday, by deadline the disability agency could not say how many letters were sent in recent months.
The surge in eligibility letters has prompted concern about how those no longer eligible for the NDIS will be cared for, given foundational supports are yet to be set up.
Social Services Minister Amanda Rishworth stressed this month that it had “never been expected that all the foundational supports would be stood up this year”, with Labor’s blueprint for the new system setting out how “general supports”, focused on education and guidance, would precede “targeted supports”, which included services for particular groups such as children with developmental delay.
Ms Rishworth also confirmed she was meeting state and territory counterparts later this month, when “foundational supports will continue to be discussed”.
“We expect that the first foundational supports will begin to be rolled out in the second half of this year, as has always been the case,” she said.
Labor was forced to announce the single-year hospital funding agreement last week rather than continue negotiations with states on a five-year deal and the implementation of foundational supports thanks to Western Australia entering caretaker mode ahead of its March 8 election.
The commonwealth also will enter caretaker mode soon, with a federal election due by May 17, meaning there will be only a handful of weeks before the date foundational supports were meant to begin rolling out, from July 1.
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