NDIS costs underestimated, Senate told

Second quarter figures for National Disability Insurance Scheme trial sites reveal the cost is running about $400 million over estimates.

The Gillard government underestimated the cost of national Disability Insurance Scheme trial sites by close to $400 million, parliament has been told.

Assistant Social Services Minister Mitch Fifield released the second quarter figures for NDIS trial sites during Senate question time on Thursday.

Average package costs are down to $40,466 but this is still 15 per cent higher than the budgeted cost of $35,000.

So far 2586 plans have been completed, well behind the target of 4340.

The difference between the expected annual cost in 2013/14 to 2015/16 and the actuarial baseline model is $392.1 million.

It was due to errors in the bilateral agreements under which the Commonwealth is liable for cost blowouts, Senator Fifield said.

Launch sites have been operating since July in South Australia, Tasmania, the Barwon region in Victoria and the NSW Hunter region.


1 min read

Published

Updated

Source: AAP


Share this with family and friends


Get SBS News daily and direct to your Inbox

Sign up now for the latest news from Australia and around the world direct to your inbox.

By subscribing, you agree to SBS’s terms of service and privacy policy including receiving email updates from SBS.

Follow SBS News

Download our apps

Listen to our podcasts

Get the latest with our News podcasts on your favourite podcast apps.

Watch on SBS

SBS World News

Take a global view with Australia's most comprehensive world news service

Watch now

Watch the latest news videos from Australia and across the world

NDIS costs underestimated, Senate told | SBS News