Support NDIS change or risk billions in hospital funding, states told
Jim Chalmers has issued a veiled threat to states that they face missing out on billions of dollars in commonwealth hospital funding should they refuse to support the NDIS reforms.
Jim Chalmers has issued a veiled threat to states that they face missing out on billions of dollars in commonwealth hospital funding should they refuse to support the Albanese government on its NDIS reforms.
Health and Disability Minister Mark Butler’s announcement that NDIS eligibility would change by mid-2027 and a new $2bn program for autistic children would be created was met with shock and outrage from state governments this week.
The NSW Labor government said the announcement represented a “significant change” to an in-principle deal to reform the NDIS agreed upon in national cabinet in 2023, with Premier Chris Minns saying he would not sign “a blank cheque” to the commonwealth as part of the newly announced policy.
The Treasurer on Sunday reminded premiers that the national health reform agreement, which would see the commonwealth pay states billions in hospital funding, was intrinsically tied to the NDIS reform package.
“There are billions and billions of dollars tied up in (those deals) and so we’ve been trying to progress both … at once for good reason because there are swings and roundabouts for both of us,” he told ABC. “As always, with commonwealth-state financial relationships, there is a bit of back and forth about how we deliver.”
When asked whether he was suggesting the states would not receive the hospital funding if they didn’t support the government’s NDIS policies, Dr Chalmers would not rule it out. “Well, that’s the ongoing discussions that we’ve been having,” he said.
“Whether it’s treasurers, health ministers, NDIS ministers, leaders – (they) have been having this discussion since the deal was struck.”
While Mr Butler announced the commonwealth would forge ahead with its plans to cut the annual growth of the NDIS to as low as 4 per cent a year, he said the states would need to play a critical role in providing the services outside of the scheme.
Labor on Wednesday said it would pay $2bn to set up the Thriving Kids program, designed to service autistic children no longer eligible for the NDIS after changes come into force in July 2027, but Mr Butler said he expected states to “match” that funding.
The government is expected to come under pressure from the Greens over the policy, with the minor party declaring it a savage cut, while the Coalition is demanding more details beyond the “headline announcement”.
Debate on the care economy more broadly will feature heavily in the coming sitting fortnight, in the wake of abuse scandals riddling the childcare sector and ahead of landmark aged-care reforms due by November 1.
In the wake of the government announcing there would be a four-month delay to its changes to aged care – which will see elderly Australians with the means to do so making co-contributions to their daily care needs – a Senate inquiry scrutinising the policy was launched.
In submissions to the inquiry that will put pressure on the government over its multibillion-dollar reforms, peak bodies and providers have urged for major changes to the policy.
Australian Unity – the country’s largest provider of home care – said the waitlist for elderly Australians to receive care needed urgent intervention.
While the government is planning on releasing just under 100,000 packages from November 1, Australian Unity said in its submission that this would come too late and see the waitlist blow out further.
“Deferring the release of packages until 1 November risks compounding pressures at a time when providers, assessors, the workforce and participants will already be navigating the operational changes introduced under Support at Home,” the submission, seen by The Australian, said.
The assessment for home care packages was also taking too long, Australian Unity said, while the proposal to have elderly Australians pay for services like showering, dressing and toileting presented serious risks.
“Requiring co-payments for personal care risks deterring older Australians from accessing essential support. Personal care is fundamental to safety, wellbeing, and independence, and provides critical opportunities to observe and respond to early signs of decline. It is akin to a clinical service and is highly personal,” the submission said.
While clinical care, such as the provision of health services and nursing, will still be fully covered, the government has made clear services considered not to fall into this category must be paid for in part by consumers.
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