Shorten targets NDIS ‘bloated waste’

The Albanese government says it is making inroads into the steep cost trajectory of the NDIS.

The Albanese government says progress is being made to make the NDIS more financially sustainable.

Bill Shorten says the government’s efforts to eliminate the “bloated waste” in the National Disability Insurance Scheme is leading to the $42bn scheme’s costs being reined in faster than expected.

The NDIS minister also said the agency administering the scheme was scrutinising plans and amendments more closely, and applicants were starting to realise it was “the end of the free drink” in terms of NDIS claims.

While he said introducing a change to ensure all people who provided NDIS supports were registered was not “automatic”, it was a reasonable consideration in terms of the safety of the 661,000 current participants and those who joined the scheme in the future.

Speaking on the ABC’s Insiders program, Mr Shorten said he was optimistic about the ongoing sustainability of the NDIS after recent changes, including new legislation passed in parliament last week.

He said estimates in the most recent NDIS quarterly report that the scheme was running about $600m ahead of budget forecasts might turn out to be even better in soon-to-be released figures.

“I’m optimistic that because we’re running the scheme better and more transparently, we’re eliminating some of that bloated waste and so … it might even come in with a lower figure, a better figure than the $600m less than we foresaw,” Mr Shorten said.

He said that government funding to the NDIS would still be increasing, but there was a need to slow its financial trajectory.

This was one of the reasons behind the new laws, which passed with the support of the Coalition, and after a considerable negotiation with the states and territories.

He said scheme costs under the Liberals grew 23 per cent in their last year of office, with 15 per cent more participants. The most recent figures for the government show 8 per cent growth in participants, and 18 per cent in annual scheme costs, which the minister acknowledged was still too high.

Applications for plan approvals and amendments had jumped in recent months, he said, because “people realise that it’s the end of the free drinks”.

NDIS Minister Bill Shorten Picture: NewsWire / Martin Ollman

On the contentious issue of whether all NDIS workers and others who interacted with participants needed to be registered, Mr Shorten noted it was still being considered.

“But on the other hand, what’s wrong with asking that? Everyone who’s driving someone that we see their driver’s licence and that they’ve got car insurance. What’s wrong with asking that?” he said.

“If you’re going to work with kids that you’ve got to have a Working With Children’s check. In fact, what’s wrong with asking, are you a real person and do you exist?”

The government said the new laws created the “scaffolding” for a more sustainable NDIS, and Mr Shorten confirmed last week that more changes were to come, including on how eligibility for the scheme was determined.

“We’re going to work to develop clarity about eligibility and access to the scheme,” he said.

“This legislation just gives us the legal authority to start that conversation with people with disability. Our aim is to do it in conjunction, concurrently with the development of supports for people outside of the scheme.”

The Greens have announced they oppose the legislative reforms and will make NDIS reform one of their key election platforms.