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National Disability Insurance Scheme and the Budget.

Updated: 3 days ago


Budget

The Federal Budget was released earlier this week, with a key to addressing the rising costs of keeping the NDIS sustainable. Estimates suggest that NDIS expenses will increase from $44.3 billion in 2024 to over $90 billion by the end of the decade. In response, the Government is exploring measures to ensure the Scheme's long-term financial feasibility.


The anticipated savings stem from changes proposed in the bill introduced in March. This bill aims to overhaul the approval process for NDIS participant funding plans and define what supports can be funded.


As we mentioned in a previous post, Exploring the Importance of Foundational Supports the government suggests that individuals with less severe disabilities transition to state and territory disability services.


The budget has assigned $468.7 million over the next four years to get the NDIS "back on track." Here's how its broken down:


  • $160.7 million for upgrading the NDIS Quality and Safeguards Commission’s information technology.

  • $45.5 million to establish a NDIS Evidence Advisory Committee.

  • $83.9 million over two years from 2023–24 to enhance fraud-detection IT systems at the NDIA to further safeguard the integrity of the NDIS.

  • $23.5 million allocated to Services Australia as part of the Fraud Fusion Taskforce, continuing the focus on fraud prevention.


Additionally, there are significant allocations for Disability Employment:


  • $252.9 million over four years from 2024–25 for the reform of employment services for people with disabilities. These reforms support the goals of the Employment White Paper and build on previous budget measures for the Disability Employment Services Program and Supported Employment.

  • $227.6 million over five years from 2023–24 to support the introduction of a new specialised DES program, starting on 1 July next year.

  • The new DES program will extend eligibility to jobseekers not receiving income support and those with less than eight hours per week work capacity, and it will remove the two-year service limit.

  • The new DES will offer wage subsidies up to $10,000 for each participant to ensure they receive adequate workplace assistance.

  • $23.3 million over four years from 2024–25 to establish the Disability Employment Centre of Excellence, with $7.6 million allocated each year to run it.

  • $2.6 million over three years from 2024–25 to extend the National Disability Abuse and Neglect Hotline and the Complaints Resolution and Referral Service.


Now that the budget has come and gone, we wait to see if the measures actually help participants and update you on further news of these proposed changes.


We will also be closely monitoring for the outcomes of the NDIA’s next annual pricing review, which is expected soon.


We wish you well, as always.

The Lama Care Team


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