Reform to the National Disability Insurance Scheme has been debated in the Senate, with the legislation expected to pass this week with Coalition support. The bill largely maintains cuts proposed by in the May budget, which forecast $37.8 billion in savings over four years, amid concern about spending growth. A range of critics have questioned whether state-based alternatives will be ready in time, and argued the proposed cuts will cause harm.
Listen to Australian and world news and follow trending topics with SBS News Podcasts.
TRANSCRIPT
"The eyes of 5.5 million disabled people fall at this moment on this Parliament. The hundreds of thousands of Australian community members, who are our allies, are in solidarity with this community. History is watching this debate. Every word spoken by every senator will be recorded and remembered."
That's Greens Senator Jordan Steele-John.
He has accused the government of backing billionaires and gas companies instead of disabled people.
Changes to the National Disability Insurance Scheme, or N-D-I-S, are expected to pass this week amid widespread concern and uncertainty in the disability community.
He says the decision to cut the scheme is the wrong choice.
"Shame on you. You betray not only this community, but the national character. You will be condemned by history. The blood and the lives of those who will suffer and die will be on your hands, and will live in your consciences forever."
Cuts to the N-D-I-S, which would move at least 160,000 people off the scheme, represented the largest single saving in the May budget, with the government banking $37.8 billion over four years.
The Coalition is widely expected to support the changes after a series of leader-level talks in the last week, despite concern state-based alternatives won't be ready in time.
Shadow Health Minister Anne Ruston says it is necessary to rein in spending growth.
"The scheme is at a crossroads. It has grown rapidly since its establishment. Originally expected to support about 410,000 Australians, the NDIS now supports 782,000 people, nearly double the original estimate, and it continues to grow."
She says it was originally estimated to cost $13.6 billion but expenditure this year exceeds $50 billion, and is forecast to reach $100 million within 10 years.
The government says it has moved to rein in spending growth to ensure the scheme is sustainable and retains its social licence.
Senator Ruston says she's sceptical Labor can achieve its goals.
"The bill represents the Albanese government's third attempt to rein in the growth of the scheme. In August 2023, they promised growth would be reduced to 8 per cent. They haven't achieved that. In January this year, despite missing that target, they pledged to reduce growth even further to between 5 and 6. They failed again. Growth is still at nearly 11 per cent. Now, in this year's budget, with no achievements under their belt, they have committed to reduce the growth in the NDIS to just 2 per cent."
The government's legislation has been examined by a Senate inquiry that received around 4,500 submissions and took emotional testimony but recommended the bill pass largely unchanged.
The Greens have secured amendments to address concerns around ministerial powers to make future cuts and transparency in the use of automated decision making.
A provision to prevent participants being forced into restrictive practices such as forced medication to receive support has also been added.
The Acting Chief Executive of People with Disability Australia, Megan Spindler-Smith, says these changes don't address fundamental concerns.
"We are feeling pretty devastated. We've been really clear and we've told parliament what these changes would mean for our lives. And we don't believe that those warnings have been adequately heard or any of the really foreseeable harm to our community, to our carers and to the economy has been effectively planned for or even considered."
She says the current roadmap does not provide clarity about what will happen for large cohorts of people who rely on the NDIS.
Significant concern has centred on foundational supports; the term given to new disability supports outside of the scheme.
They'll be jointly funded by the states and Commonwealth government through a new $10 billion fund over five years.
Ms Spindler-Smith says one example is Thriving Kids, a $2 billion program for children with autism and developmental delays.
"The states have been very clear that what they can provide is not likely to be a one for one coverage of what is currently being offered through the NDIS. And so let's be really clear about that. Right now, the only thing we have any true understanding around is what is going to happen through the Thriving Kids part of foundational supports, which is only for kids up to the age of eight."
She says it's not clear what support will be available for older children, teenagers, or adults who need support.
"What happens to children over the age of eight? What happens to adults and teenagers with disability who need supports? We don't know what foundational supports look like. And not every state is fully on board right now for every part of that either. So our concerns are no, it's not going to be ready in time. And the current roadmap is not necessarily making that clearer for us. And we don't have guarantees in a legislative way, in a way that can't be stepped away from, that people with disability won't fall through the gaps."
A new assessment tool to determine who will remain on the NDIS is still being developed ahead of a deadline for the commencement of most foundational supports from the start of 2028.
Health Minister Mark Butler says he's confident states will have established those programs in time.
"Now, for other participants or potential participants who would not satisfy the new substantially reduced functional capacity test that is currently being developed by the technical advisory group, and I had my second meeting with them the week before last. Yes, foundational support systems will have to be built for them as well. Kids over the age of nine and adults who might not end up being on the NDIS as a result of that new test being introduced. And there's a lot of work for state governments and the Commonwealth to do there. We're committed to doing that work."
One area of the scheme that will be slashed is social and community supports, which help participants leave the house, connect with others, and participate in community life.
Independent Senator for the A-C-T, David Pocock, says he still has major concerns about what's been proposed.
"We heard that this will isolate people. People are already more isolated than the general population, the Disability Royal Commission warned what can happen when people with disability are isolated, when they are segregated, violence, abuse, exploitation. This funding is a safeguard against all of those things."
Analysis by the Grattan Institute has found those cuts constitute $13.2 billion of savings over the next two years, but warned strongly against them.
The centrist think tank found the N-D-I-S can be put on a sustainable footing without those cuts, but much of the debate has focused on fraud.
In its submission to the Senate inquiry the Grattan Institute said savings from fraud account for just two per cent of the total, or $900 million.
Senator Anne Ruston says more should be done to claw back money lost to fraud.
"The Australian National Audit Office has estimated that up to 10 per cent of payments are non-compliant, incorrect, or fraudulent. Ten per cent. That is $5 billion a year on today's expenditure. That's $5 billion of taxpayer money just walking out the door and delivering no care."
On Monday, the Minister for the N-D-I-S, Jenny McAllister, told ABC Radio National that she's open to working with the Coalition to introduce stronger integrity measures.
On Monday, Senator Ruston said those discussions continue.
"The Coalition has been working across the Parliament with the government, the Australian Greens, and specifically Senator Steele-John, and members of the crossbench to improve this bill. There are also additional amendments which will require the pricing advice received by the minister to be tabled and a review of these reforms to be undertaken and tabled in the Parliament. We continue to work with the government to make additional improvements to this bill."
But as the community faces the likelihood the reforms will pass this week, Senator Ruston acknowledged many have felt sidelined in the debate.
"One of the things that stood out during the Senate inquiry was the disability community's outrage and heartbreak that they were not consulted on these reforms before they were introduced. There has been no consultation with the disability community, representative organisations, or even state and territory ministers on these reforms."
Disability Discrimination Commissioner Rosemary Kayess has called for a pause to allow what she called a more considered and consultative approach.
