The NDIS has been described as at its 'adolescent stage' by health minister Mark Butler.
Speaking at the National Press Club today health minister Mark Butler addressed the management of the NDIS – more specifically, how it can better serve its users while remaining viable.
“The NDIS didn’t drop out of the sky,” Mr Butler said.
“It was the product of determined advocacy by disability advocates, stretching back decades.
“Australia’s NDIS has gone from a dream of generations of activists to an entrenched and beloved national institution, [it] really is a symbol of what our democracy can achieve.”
Mr Butler reiterated that the 2022 review of the NDIS was the basis for reforms in the sector, with the service reportedly still in its “adolescent stage.”
He focussed on two primary reform directions: the provision of support and keeping the scheme sustainable under the current budget.
“It goes without saying that meeting those challenges and others will always be framed with the interests and the choices of those living with a disability, right at the centre of our thinking,” Mr Butler said.
“The scheme now supports just under 740,000 It is projected to grow to a million by 2034.
“When we came to government in 2022 the scheme’s costs were growing at an extraordinary 22% per year.”
In comparison, both aged care and Medicare are only projected to grow by approximately 5% per year.
The aged care sector is expected to see a huge increase in demand due to the ageing baby boomer generation.
“National cabinet back in 2023 agreed to get growth in the NDIS down to 8% by next year,” Mr Butler said.
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“The NDIS is still forecast to cost $105 billion and will increase its share of the economy, or GDP, by fully half a percent over the coming decade.
“That’s the equivalent of growth in Medicare, defence and aged care combined, measured as a share of GDP.
“Getting growth down from 22% to eight will certainly be a substantial achievement.”
This 8% target is not considered sustainable for the long run though according to Butler, with the number only being an interim target before more reforms can be made.
The true stated target number was 4-5% annual growth with an additional 1% for the ageing population, which Mr Butler said “should really reflect unit price inflation plus growth in Australia’s population.”
“There is real potential to introduce more pricing discipline within the scheme, drawing on the independent pricing experience in hospitals and aged care.
“As much as possible, the pricing of services across health and those two big care sectors should be aligned – to maximise efficiency and prevent distortion.”
