Linda Reynolds under fire over NDIS funding as new laws in the balance

The Victorian and NSW governments have called for greater leadership from Linda Reynolds on the NDIS after she called out the states’ shared funding responsibilities.

Jemma Calavassy with her daughter Liv, 7. Picture: David Swift

The Victorian and NSW governments have called for greater leadership from Linda Reynolds on the National Disability Insurance Scheme after she called out the states’ shared funding responsibilities, with Scott Morrison declaring the NDIS was not a welfare program.

Disability advocates, federal Labor and the Greens took aim at Senator Reynolds on Thursday over claims made in an interview with The Australian that the scheme’s costs were unsustainable.

Government legislation that would implement recommendations from the 2019 Tune review also faces the prospect of defeat in the Senate.

The backlash comes amid a fight over the future of the NDIS as participants warn that their plans are being unfairly “cut by stealth” to rein in costs.

Jemma Calavassy’s seven-year-old daughter, Liv, is one such participant who has seen her funding slashed.

Liv, who has Williams syndrome and has been on the NDIS for six years, saw her funding cut from $36,702 last year to $20,369 in recent months.

Ms Calavassy, who plans on taking her daughter’s case to the Administrative Appeals Tribunal, said she was perplexed by the decision and felt services were being cut to save money in the hope participants would not fight back.

“We were devastated because it was a 45 per cent drop in Liv’s funding,” she said. “That’s not a light touch, there is a real disconnect between the co-ordinator dealing with the participant to the person making the decision.”

Ms Calavassy said the revised package was simply not enough and would not cover the specialised equipment, such as knee braces, special shoes and orthotics desperately needed by her daughter to walk, let alone her physiotherapist and psychologist requirements.

Senator Reynolds has argued changes are needed to address the blowout in NDIS funding costs to ensure the scheme can last for generations, declaring the states and territories “have a responsibility as well”.

But Victorian Disability Minister James Merlino said the Morrison government needed to step up and deliver what people with a disability had been promised.

“Throughout the pandemic we have seen the Morrison government avoid taking responsibility for the wellbeing of Australians – by failing to order enough vaccines and refusing to lead on protecting vulnerable aged care residents,” Mr Merlino said. “After years of using underspending on the NDIS to prop up their budget, the commonwealth are again walking away from their responsibility to support Australians with disability.”

NSW Disability Services Minister Alister Henskens said his state had signed an agreement to contribute billions of dollars to the scheme until 2028. But he warned the same deal “makes clear that the commonwealth is responsible for the balance of all NDIS costs”.

Opposition NDIS spokesman Bill Shorten said the commonwealth should not shift the blame to the states and territories and accused the government of declaring war on the NDIS.

Senator Reynolds’ office on Wednesday revealed controversial new powers for the NDIS chief executive, contained in the proposed legislation, had been amended to ensure they could only be used in limited circumstances. But Mr Shorten said the bill was a “dangerous attack” and that Labor would still oppose it unless it was changed.

The Prime Minister told question time on Thursday he also did not believe the NDIS was a welfare scheme.