Labor to tighten child NDIS eligibility to curb spending as Queensland MP warns change is ‘failing kids’ | Disability
National disability insurance providers will be required to undergo mandatory character checks and eligibility rules for children under 18 will be further tightened as Labor moves to restrict growth in the $50 billion scheme.
But health minister Mark Butler faced pushback from his state counterparts as he announced major changes on Wednesday; Queensland has accused federal Labor of shirking responsibility for families in need of long-term care.
Guardian Australia can reveal Queensland disability minister Amanda Camm was prevented from attending a briefing by Butler and treasurer Jim Chalmers on Tuesday. Only state and territory treasurers, not the ministers responsible for implementing the changes, were informed of the cuts before the public announcement.
Butler said he plans to work with states to change eligibility rules and return the NDIS to its original aim of caring for people with permanent and significant disabilities.
The NDIS will be the biggest source of savings in the 12 May federal budget. The cost of the program rose by more than 10.3% last year and will cost $63 billion by 2028-29. It is expected to support more than 1 million participants by 2033 and reach $95.8 billion in 2034-35, according to the latest quarterly update.
Labor wants to cap growth at 5% to 6% per year well before then.
Character checks of providers will help stop waste and eliminate dangerous operators behind “systemic” fraud. Organized crime groups infiltrated the scheme by using coercion and cash kickbacks from participants and families to launder money.
State governments are preparing for more children under 18 to be removed from NDIS services; These are changes that will go further than the new essential support scheme Butler announced in August last year. The program, known as Success Kids, is designed to support children with autism and developmental delays.
Queensland has not yet signed an operating agreement for the new program, which will start in October.
Camm said Labor must not abandon the most vulnerable to improve the profitability of the budget.
“The federal government’s plan to step away from its responsibilities to children and families is to fail children, not to enable them to succeed,” he said.
“Apart from those who are next targeted by the NDIS’ failure to plan, serious concerns remain about the long-term care of these children.”
Butler will describe the changes as implementing recommendations from a landmark review of the NDIS published last year, with new technical advisory groups established to guide the changes.
52% of the program’s 717,000 participants were children aged 18 and under As of March last year. But the group received just 19%, or $8.37 billion, of all payments made by the NDIS.
Shadow NDIS minister Melissa McIntosh said Labor had failed to consult disabled Australians and their families.
“The program, which has a budget of over $50 billion a year and supports almost twice the expected number of participants (currently more than 760,000), is under pressure and risks collapsing under its own weight without serious intervention.”
Butler flagged in August last year that adults with psychosocial disabilities would be the “second largest group” to move from the NDIS to external services.
The NDIS’s most expensive plans are generally reserved for participants with the highest needs.
Latest figures It shows nearly 41,000 respondents used supported independent living or disability accommodation.
The same data shows that a participant with a private housing plan received an average annual support payment of $241,000, while a participant without it received an average support payment of $31,000.
Participants with special housing arrangements need assistance with showering, assistance with daily tasks, and customized accommodations.
From July, service providers offering these accommodation packages will be required to undergo regular reporting, independent audits and worker screening checks.
Finance Minister Katy Gallagher said Labor was aware the disabled community would be concerned about the change but said current spending was unsustainable.
“The states have a vested interest because they are in danger of constantly increasing costs. This affects not only our budget, but their budget as well.”
