Federal Labor’s contentious changes to childhood autism services on the National Disability Insurance Scheme could be delayed beyond the federal election, despite the states agreeing to early stages of an agreement.
Disability Minister Bill Shorten will convene state and territory colleagues in Adelaide this week, the latest instalment in negotiations about sharing the cost of so-called foundational supports, including care provision through education and health systems.
Disability Minister Bill Shorten is negotiating with states and territories about autism services. Alex Ellinghausen
State governments confirmed on Monday that design elements of the change were yet to be resolved, despite Mr Shorten saying “the bones of the arrangements” were already in place.
Victoria’s Disability Minister Lizzie Blandthorn said the work was ongoing.
“We continue to urge the Commonwealth government to work in close partnership with states and territories and undertake adequate consultation to ensure the delivery of a sustainable and successful NDIS.
“There remain a number of critical threshold issues to be worked through and agreed.
“Any reforms to the NDIS should be designed and implemented in a way that helps Victorians with disability access the support they need and deserve.”
People with autism and developmental delays, which can often precede an autism diagnosis, account for 45 per cent of all NDIS participants.
The average autism NDIS participant receives $33,800 a year, according to NDIS data. The ballooning number of autism cases has been a key driver in the explosion of the cost of the scheme.
States ‘very supportive’
Social Services Minister Amanda Rishworth is leading negotiations on services for children with developmental delays.
“The states have committed to working with us on foundational supports. It will take time, and I know that the states approach this topic with goodwill,” Mr Shorten said.
“The states and territories have proven that when it comes to the crunch, they’re very supportive of the NDIS and including people with disabilities in Australian life.
“They have committed to contributing an 8 per cent increase to the cost of the scheme from 2028. They’ve committed to working on a 50-50 basis with the federal government on foundational supports, so it’s all headed in the right direction.”
But Mr Shorten did not commit to the process being concluded in the current term of parliament. The federal election is due by May, and Mr Shorten is preparing to leave federal politics in February, to take up a position at the University of Canberra.
New penalties
He said on Monday that Labor would introduce new legislation to stop NDIS fraud, giving new compliance powers to the NDIS Quality and Safeguards Commission as recommended by an expert review.
Penalties for providers will increase from $400,000 to more than $15 million, when a participant is hurt or injured under a provider’s care. The commission will be able to refer providers for criminal prosecution for the first time.
“We want to give the Safeguards Commission, the watchdog, greater powers to acquire information, to extend the remit of who they can issue banning orders against into related NDIS areas, including people who promote false products online, false financial products, to people on the scheme,” Mr Shorten said.
The plan will require the support of the Coalition, or the Greens and the crossbench to pass parliament.
Since earlier this month, non-essential services including sex work, tarot card reading, yoga classes and cuddle therapy have been banned from NDIS plans, as the first list of approved services for participants came into force.
The NDIS is growing at about 20 per cent per year and has become one of the largest budgetary challenges for the Albanese government, alongside interest on government debt.
Labor’s NDIS reform plan, already passed in parliament, will put in place measures forecast to save $14.4 billion. Mr Shorten said other moves to cut waste and fraud had already saved taxpayers about $600 million.
Just a decade old, the NDIS costs more to run per year than the aged care system ($36 billion), Medicare ($32 billion), federal government funding for hospitals ($30 billion) and the pharmaceutical benefits scheme ($20 billion).