States pressured to ‘get over’ issues with NDIS reform
Health committee chair Mike Freelander warns states must overcome funding concerns or risk the NDIS becoming unsustainable for those with severe disabilities.
State governments apprehensive about the commonwealth’s plan to change NDIS eligibility and create new programs outside the $46bn disability scheme need to “deal with” their concerns about what the reforms will cost them or else put at risk the sustainability of the NDIS, the chair of parliament’s health committee says.
Mike Freelander – a NSW Labor MP and pediatrician – said concern from states in recent days over the policy and federal Health Minister Mark Butler’s failure to consult with them before announcing the reform stemmed from their preoccupation with their own financial issues.
“States are under financial constraints. I’ve already heard previously from (NSW Premier) Chris Minns about how they can’t afford to fund rail projects. There’s reluctance (to this policy) because they’re worried they’re going to have to spend some money,” Dr Freelander told The Australian.
“Unfortunately, there are going to be costs involved in this, there’s no doubt. But at the same time, if we let the NDIS go and do all things to all people, it will be unaffordable and what it will mean is the kids with severe disability will miss out.”
While states in 2023 agreed in principle to jointly fund a $5bn pool that would prop up the creation of services to support people outside of the NDIS, known as foundational supports, the exact dollar figure each state would need to contribute has not been decided.
States are also concerned that once support programs such as Mr Butler’s $2bn Thriving Kids initiative are fully set up, they will bear ongoing and as-yet unforeseen extra costs.
The negotiations are also being tied to the final outcome of a five-year National Health Reform Agreement, with a NSW spokeswoman this week saying the commonwealth now needed to table a new NHRA proposal in light of Mr Butler’s NDIS announcement.
NSW Treasurer Daniel Mookhey on Friday reiterated comments from Mr Minns over the lack of warning the state was given, although he refused to weigh in on whether Mr Butler’s handling of the announcement was unusual, saying: “It’s not for me to characterise.”
The Australian can also reveal the policy had not been taken to caucus – or the relevant caucus committee – before it was announced on Wednesday, with government sources indicating it was not a surprise given there was still much detail to be hashed out and no legislation to examine yet.
The matter is due to be discussed when caucus next meets, on Tuesday.
Dr Freelander said he expected getting the states on board would be “a hard battle” for Mr Butler, but he reminded premiers that the problem facing the country when it came to disability support came to fruition after they pulled back services in 2014.
“They walked away from a lot of these services once we developed the NDIS, which is part of the problem,” he said. “The fact is, governments need to deal with this.”
The ongoing tension between the states and commonwealth over the policy comes as mental health groups urge governments not to wait too long before focusing on the next cohort who need a new set of services developed for them, namely those with complex mental health issues.
Mental Health Australia chief executive Carolyn Nikoloski said the matter was “urgent” and there was “a need for governments to come together at the national level and jointly agree to fund community-based supports”.
She said there were more than 200,000 people with complex mental health issues currently going without support.
Government sources confirmed Mr Butler was considering this cohort as the next group to be diverted away from the NDIS and onto a new support system, after policies for servicing mildly autistic children were settled.
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