The NDIS Bill this week was passed in the House of Representatives, but it is far from becoming law. It is still slated to go to the Senate, where the rumours are flying that it will be opposed from the crossbench, in particular from Jordon Steele-John from the Greens – his reason?
“This NDIS legislation has been done behind closed doors, with non-disclosure agreements abounding” he said. He went on further to say “Making advocates sign non-disclosure agreements is not genuine co-design. He wants to know “what have they got to hide?”
The Big Picture
The new bill, boldly named "Getting the NDIS Back on Track No. 1," is the first of many planned updates. These changes come after a thorough review of the NDIS, which pointed out some of the biggest areas that required changing.
We have been watching with bated breath on when these changes will come into effect. Every week there is another rumour of the expected modifications. Providers, especially Coordinators are getting stressed and wondering whether they have a business in the long-term.
We do know that subtle measures are being put into place in the background, without the NDIA giving us any real information. NDIS Facebook groups are lighting up with stressors in the form of changing plans without consultation of participants (just to name one), that are coming from within the NDIS, without explanation. These are polarising and unfair on the surface, to our NDIS customers.
Why the Changes?
We all know that there are serious concerns about the NDIS. The government worried about whether it can keep up financially, that it's vulnerable to fraud, and whether the right people are getting the help they need.
They have collaborated with NDIS participants and said they have listened, but it seems most of the listening went straight to blaming providers for the mess and fraud. None of which factored in the Covid lockdowns, where former LAC’s will tell you, anything and everything was being approved because of the uncertainty of our lives.
What’s in the Bill?
Clearer Definitions: The bill clarifies what types of disability supports can be funded by the NDIS.
New Entry Process: There's a new way to determine who gets into the NDIS, with two main paths: early intervention and disability requirements.
Smooth Transitions: It outlines how current NDIS participants will move from their old plans to new ones.
Who's Looking at This?
The Senate Community Affairs Legislation Committee is digging into the details and will report back by June 20, 2024. Other committees haven’t weighed in just yet.
Breaking Down the Bill
The bill wants to correct the NDIS Act to make sure only appropriate supports are funded and to set up a new system for assessing eligibility.
The bill has two main sections, each with parts that handle different aspects of the changes.
Schedule 1: Three Parts
NDIS Supports: This part clarifies what supports are covered, introduces new assessment processes, and changes the focus from ‘reasonable and necessary supports’ to ‘reasonable and necessary budgets.’
Regulation Modifications: Adjustments to the Legislation (Exemptions and Other Matters) Regulation 2015, ensuring the new rules stick around without needing constant renewal.
Transition Rules: Guidelines for moving participants to new plans smoothly.
Schedule 2: Two Parts
Quality and Safeguarding: Enhancements to quality control, including easier approvals for quality auditors and more power to issue fines.
Executive Power Expansion: Expanding the ability to authorise infringement notices from senior executives to lower-level officers.
A reminder of what the NDIS Review Recommendations were:
The Bill is based on some key recommendations from the review:
Recommendation 3: Make the process for participants fairer and more consistent.
Recommendation 5: Help people with disabilities make their own decisions about their lives.
Recommendation 6: Create a support system for children under 9 and their families.
Recommendation 7: Develop a new way to support people with psychosocial disabilities, focusing on personal recovery and mental health reforms.
Recommendation 17: Develop a risk-based model to monitor and regulate all service providers and workers and improve responses to quality and safety issues.
The Bill aims to:
Clarify what types of support the NDIS covers.
Change how "reasonable and necessary" funding is determined.
Explain how early intervention for disabilities will work.
These changes will affect how funds are allocated and spent, and whether people will receive NDIS support until they turn 65 or only for a few years of early intervention. It's like setting new rules for who gets what help and for how long, ensuring the system works better for everyone involved.
Current NDIS Arrangements
This section explains how the National Disability Insurance Scheme (NDIS) currently works, relevant to the new Bill.
Building Plans with Reasonable and Necessary Supports
The NDIS funds disability supports through personalised budgets called plans. These plans are based on what the NDIA considers "reasonable and necessary" supports, as defined in section 34 of the NDIS Act and the NDIS (Supports for Participants) Rules 2013.
New Recommendation for Plans
The NDIS review suggested changing how these plans are built. Instead of focusing on individual support items like sessions with allied health or a new wheelchair, the new approach recommends creating a comprehensive plan with a flexible budget. This means participants can decide how to spend their funds within the budget to better meet their overall needs.
Eligibility for the NDIS
To access the NDIS, individuals must meet certain criteria related to disability or early intervention needs. Some participants might qualify for both early intervention and permanent disability supports at the same time. Those who enter the scheme for early intervention may later be reassessed and either qualify for permanent disability supports or become ineligible for further NDIS funding.
The Key Issues in the NDIS: Explained
Let's break down the main challenges facing the NDIS and how the new Bill aims to tackle them:
Cost of the Scheme
What's the issue? The National Disability Insurance Scheme (NDIS) is expensive, with projected costs hitting $41.9 billion in 2023–24. Prime Minister Anthony Albanese has called the funding "unsustainable" and is urging state and territory governments to pitch in more.
What's being done? While the Bill doesn't directly address how funding is split between federal, state, and territory governments, it does aim to make the overall costs clearer and includes some cost-saving measures like funding for foundational supports. We talked about this in our post: The importance of foundational supports in building a strong NDIS future
Fraud
What's the issue? There are always some providers who take advantage of the system by overcharging participants, findings were especially scathing of supported independent living facilities. There are also descriptions of NDIS participants being charged more than non-participants for the same services. High-profile cases have even shown funds being misused, like providers pressuring participants to use their funds for cruises.
What's being done? The Fraud Fusion Taskforce, led by Minister Shorten, involves 16 government agencies working together to detect and prevent fraud. In its first year, it investigated $1 billion in NDIS payments and took 100 cases of fraud to court. Although, what are they doing about the smaller frauds, which add up? As providers ourselves, we have reported fraud on behalf of our customers, and nothing was done. A new taskforce is also being set up to stop the so-called "wedding tax" pricing, where NDIS participants are charged more than others for the same service.
Eligibility Criteria
What's the issue? Critics of the NDIS will argue that the NDIS eligibility criteria is inconsistent and difficult. For instance, while some conditions are on 'access lists' LIST A that simplify the process, others aren't. Additionally, even people with permanent conditions, like cerebral palsy and spinal cord injuries have to re-prove their needs annually. There’s also concern about the rising number of children entering the Scheme, which could drive up costs over time.
Policies to Address These Issues
Tackling Costs: The Albanese Government has set an 8% growth target for the NDIS under the NDIS Financial Sustainability Framework, which is supposed to be in place by July 2026. However, the details still unclear on how they will achieve this, and the government has withheld some related documents, citing the need to protect relations with states and territories.
Addressing Fraud and Overcharging: The Fraud Fusion Taskforce has made significant strides in combating fraud, and a new initiative is targeting unfair pricing practices to ensure NDIS participants aren't overcharged compared to others.
These measures are designed to make the NDIS more sustainable, fair, and efficient, addressing some of the most pressing issues within the Scheme.
Again, only time will tell how this works, if the Bill is not passed in the Senate, does Mr. Shorten have a PLAN B in place?
We will keep you updated for you as a business and for the most important people, your customers.
We wish you well, as always
The Lama Care Team
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