NDIS reforms curbing costs without cutting participant support

Latest data shows the National Disability Insurance Scheme (NDIS) is stabilising under Labor’s new reforms, with costs trending significantly below earlier projections. The Albanese Government attributes these positive developments to targeted measures aimed at improving transparency, combating fraud and clarifying what can be funded under participants’ plans.

Minister for Social Services and the NDIS, Amanda Rishworth, insists the reforms will not come at the expense of the more than 700,000 Australians who rely on the scheme. “The Albanese Labor Government is absolutely committed to improving the lives of the more than 700,000 NDIS participants, ensuring people with disability can live independently and participate fully in the community,” Minister Rishworth said.

Government data for the end of February indicates the scheme is $700 million under its initial forecast, putting year-on-year growth at 10 per cent—down from a previous 12 per cent and well below the 22 per cent level seen in 2021–22 under the Liberal Party. This paves the way for achieving the National Cabinet’s target of eight per cent growth by July 2026.

“We’re reforming the NDIS to deliver better outcomes for people with disability and to be more responsive to individual needs, as well as enabling more consistent, fair and transparent decision making so that it continues to provide the reasonable and necessary supports that people need,” Minister Rishworth added.

According to the Minister, clearer funding guidelines and heightened vigilance against fraud are central to preserving the NDIS as “an integral part of our social infrastructure.” She emphasised that cost reduction efforts should not overshadow the scheme’s primary purpose: “While we are delivering a sustainable NDIS that can endure for generations, solely focusing on the finances fails to celebrate the scheme for what it is – a world leading social initiative.”

Minister Rishworth also underscored the importance of involving the disability community in implementing ongoing changes. “This reduction in growth is a direct result of our Government, along with the National Disability Insurance Agency, working with participants and the broader disability community to build a better NDIS,” she said.

She added that the government is committed to “providing greater clarity on what NDIS funding can and cannot be spent on, on preventing fraud, and on improving planning to make it more consistent, transparent and fairer.” The Minister stressed that more work remains to ensure the NDIS continues to meet its core mission: “It is essential people with disability continue to have a voice in how any changes are implemented. We will continue to use co-design to amplify the voices of people with disability so that we get these improvements right.”

Related: New tool reveals NDIS and aged care demand across Australia

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Ritchelle is a Content Producer for Healthcare Channel, Australia’s premier resource of information for healthcare.