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The NDIS and the Federal Budget – What it means for you.

  • Written on May 10, 2023

The National Disability Insurance Scheme (NDIS) has been a problem-plagued and costly scheme. Because of this, economists have warned that it could blow out by as much as $100 billion in the next decade if no intervention were made. To address this issue, the Federal Government has announced a plan to rein in the NDIS. They aim to do this by cracking down on dodgy providers and making the scheme more user-friendly. The plan will deliver almost $500 million in savings by 2027.

National Autism Directory. NDIS and Federal Budget news,

The NDIS and Federal Budget lowdown.

This Budget commits a total of $910 million over four years to improve the NDIS and support and safeguard people with a disability and the Scheme.

The government has allocated $732.9 million from 2023-2026 to fix the ailing system with the NDIS Financial Stability Framework. This framework aims to limit the scheme’s growth and ultimately deliver a saving of $622.8 million in 2026-27. As part of this plan, state leaders have agreed to halve the annual growth target from 15 to 8% percent.

Snapshot of NDIS in 2023/2024 Federal Budget.

  • The Federal Government has announced a plan to rein in the costly and problem-plagued National Disability Insurance Scheme (NDIS).
  • The plan aims to deliver almost $500 million in savings by 2027. It also promises a crackdown on dodgy providers and a more user-friendly scheme.
  • The government will spend $732.9 million from 2023-2026 in an attempt to fix the ailing system. They will do this through its NDIS Financial Stability Framework.
  • State leaders agreed to halving the annual growth target from 15 to just 8 per cent.
  • The bulk of the Budget money will be spent on improving the National Disability Insurance Agency’s systems to improve processes and planning decisions.
  • More than $70 million will be spent on helping people manage their plans better.
  • $63.8 million to make sure plans are more transparent and flexible.
  • $56.4 million to improve independent living decisions.
  • $48.3 million to detect fraud.
  • $29.3 million to increase the number of participants using evidence-based supports.
  • The plan also includes initiatives to strengthen the NDIS Quality and Safeguards Commission. Along with a commitment to reduce the number of people under the age of 65 living in aged care facilities.
  • The government’s plan is expected to deliver a more sustainable and effective NDIS, providing vital services to those who need them.

Read More: Supporting Siblings of Autistic Children: Tips for Parents

What does this mean for NDIS participants.

The commitment to addressing fraud and streamlining the National Disability Insurance Scheme (NDIS) has been met with approval from many stakeholders. The government’s budgetary aim of eradicating rogue NDIS providers and directing funds to where they are needed the most is a significant step towards ensuring that the scheme is sustainable in the long term.

However, we do have concern about the reduction in growth of the scheme from 15% to 8%. We fear this may hinder the expansion of the NDIS to cover conditions such as ADHD. While the recovered funds from fraudulent activities and unscrupulous traders will assist in funding the scheme for genuine participants, it remains uncertain if the reduced growth rate can support the addition of new conditions to the scheme in the future.

Treasurer Jim Chalmers has emphasised the need for action to ensure that the NDIS delivers vital services that improve the lives of its participants. Surprisingly, the Federal Government funds around 66 percent of the scheme’s cost. The original plan was for a 50/50 split between the state and territory governments and the Federal Government. The government’s commitment to the scheme is unwavering, and stakeholders are encouraged to continue advocating for the improvement of the NDIS.

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