NDIS reforms on rocky ground at end of snap inquiry
A controversial overhaul of the National Disability Insurance Scheme appears to be on rocky ground after a three-day inquiry in which nearly all witnesses criticized the proposed changes.
Government officials announced that a total of 350,000 people would be either kicked out of the program or diverted to other programs by 2031, prompting accusations from the opposition that the plan was an exercise in “cost shifting”.
The federal government hopes to enact the reforms with the support of the Liberals and Nationals before parliament reconvenes for winter recess on July 2.
While opposition NDIS spokeswoman Melissa McIntosh agreed change was needed, she said advocates, states and territories were raising real fears about Labour’s proposal.
“Throughout the hearings, witnesses were telling the committee that people would die as a result of these changes. It is our responsibility to listen to their concerns,” he said.
Under the government’s plan, hundreds of thousands of people will lose their entitlement to NDIS services and transfer them to other government-run support in a bid to save $56 billion in the scheme’s spiraling costs.
But in a scathing presentation on Thursday, states and territories said they were not prepared for an influx of disabled Australians who could be overlooked.
“States and territories are not in a position to provide similar services to people leaving the NDIS and have not made any agreements,” they said.
In total, 241,000 people will be removed from the program by mid-2031, while another 110,000 people waiting to join the NDIS will be moved to other programmes.
The updated figures were released during a three-day senate inquiry into the reforms from advocacy groups, disability service providers and government agencies.
Nearly all those who testified over the three days called for changes to the bill to ensure people with disabilities are not left behind.
But government officials downplayed concerns about a planned 50 per cent cut to participants’ social and community engagement budgets, saying some would see their funding cut less and support would still be available.
“Downsizing does not completely eliminate someone’s budget, so there is still an allowance for social, civic and community engagement,” NDIS first assistant secretary Erin Rule told the inquiry.
Bureaucrats also said they would have more work to do to determine whether some participants could be forced to use psychotropic drugs that could be used as a chemical restraint for people with disabilities.
Ministry officials said that the use of these drugs will be determined according to the rules that are still being prepared.
