NDIS reform can come without compromising its original intention, the minister responsible for the scheme says, as spending for the disability program is set to come in lower than expected.
New figures revealed expenses for the NDIS will be $1 billion lower than previously forecast in the 2024-25 Federal Budget.
Laws which came into effect in October moved to cap growth for the scheme at 8% each year, following concern of increasing spending.
The revised expenses figures have shown the growth of the NDIS in the current financial year will be 12%, down from 19% in the previous 12 months.
NDIS Minister Bill Shorten said that while there had been criticism about the overhaul of the scheme, the reforms were improving the lives of people with disabilities.
“It is possible to improve the scheme without undermining its fundamental values,” he told Adelaide radio station 5AA.
“Whilst that’s led to tears at bedtime by some of the dodgy providers with crystal therapy and other therapies which are just not evidence based, the truth of the matter is now providing clarity.”
There had been concern NDIS spending would reach $50 billion a year by 2025/26, which would be higher than the annual cost of Medicare.
Under the NDIS reform, people with disabilities have stricter eligibility requirements to get funding for the scheme, with participants also having to go through fresh assessments for supports.
There are more than 660,000 people with disabilities who are participants in the NDIS.
Mr Shorten said the lower spending on the NDIS did not mean less support.
“We’re just running the scheme better. That doesn’t mean that we’re not providing services. There’ll be more people on the scheme next year than this year,” he said.
“We’re overhauling how we assess people, making it consistent, we’ve put a sort of in and out list (of) what you can spend your resources on.”
It comes as the NDIS watchdog issued a record number of fines during the 2023/24 financial year, with $4 million in penalties handed out.
The number of fines is a six times the amount that was given the previous year.
The NDIS commission’s annual report showed there were 11,345 complaints made in 2023/24, an increase of 78%.
Most of the complaints were concerning worker conduct and provider practice.
