States on edge about NDIS cuts as Chalmers flags they will be ‘easily the most important’ part of budget savings | Health
As states become increasingly nervous about Labor’s efforts to cut NDIS spending in next month’s budget, officials want health secretary Mark Butler to announce planned savings ahead of a major speech this week.
Finance Minister Jim Chalmers signaled on Monday morning that cuts to the NDIS would be “easily the centerpiece of the savings package we will deliver on budget night”.
Butler will speak at the National Press Club in Canberra on Wednesday to detail changes to the program’s growth rate, amid efforts to support the sustainability of the program for disabled Australians and their families.
But government sources in several states told Guardian Australia they were concerned about the scope of the changes and potential new costs for states after written requests for information to Butler’s division chief Blair Comley were rejected.
As chair of the Australian Federation Council, which represents states in negotiations with the federal government, Western Australia has raised disability ministers’ concerns about structural changes in recent days.
In his speech at the Press Club last August, Butler declared that many states were “blindsided”; announced without warning that a national plan for core supports for children with autism and developmental delays would replace state-led program plans.
The Successful Kids program, which is scheduled to launch in October, is subject to joint agreements between state premiers and the federal government.
While Victoria’s agreement is nearing completion, Queensland has yet to sign the agreement.
Butler this month said any changes would be through a co-design process and stressed that all states and territories had agreed a “package deal” to increase hospital funding in return for NDIS reforms.
Stating that there are major cuts in the budget, Chalmers said that he will brief state financers, not disabled ministers, on Tuesday.
“The NDIS is growing too fast for Australians to afford,” the treasurer said on Monday.
“This was a really big part of our pre-budget discussions. It’s undoubtedly the most important piece of the savings package we’ll present on budget night.”
“There were hours of negotiations.”
As part of broader savings, the federal government and states agreed to spend $4 billion on Thriving Kids through 50/50 cost sharing.
“We all have a part to play in reforming the NDIS so we can deliver the affordable care people need and deserve, and pay for it sustainably,” Chalmers said.
The $52 billion NDIS grew by more than 10.3 per cent last year and will cost $63 billion in 2028-29. Butler and NDIS minister Jenny McAllister want to reduce growth to between 5% and 6% a year, while protecting essential services for people with a permanent and significant disability.
The turn of events has raised concerns in the disability community, among state government ministers and even Bill Shorten, who helped create the scheme in the last Labor government and held the NDIS portfolio until he left parliament last year.
Guardian Australia reported earlier this month that Labor had quietly set up a razor gang to boost budget savings. The NDIS Sustainability Taskforce, established within the health department earlier this year, is led by former Treasury official Anthea Long.
Last week prime minister Anthony Albanese ruled out introducing new procedural tests for the NDIS and said Labor was staying. We adhere to universal access rules.
Labor could strengthen registration requirements for NDIS providers, which would improve compliance and integrity in the scheme and help eliminate dodgy operators.
Mandatory registration rules for assisted living providers begin July 1.
