Speaking at the National Press Club yesterday, Minister Butler, the Minister for Health and Ageing, had very stark words about the sustainability of the NDIS scheme.
In his address he shared the startling numbers of growth that the NDIS scheme has seen, and the worrying impact this unsustainability poses for those it was originally intended for. Minister Butler unveiled, as part of the plan to bring the growth numbers under control, a shifting of kids with “mild to moderate autism” onto a new scheme.
In his address, Minister Butler stated the two main challenges to be faced were “returning the scheme to its original purpose – its North Star – the provision of support ‘to people with significant and permanent care and support needs’.” As well as, “ensuring the scheme becomes sustainable from a Budget perspective.”
Detailing the scheme beginning he reminded, “Originally intended to support around 410,000 people with disability, the scheme now supports just under 740,000 and is projected to grow to a million by 2034.”
“When we came to government in 2022, the scheme’s costs were growing at 22 per cent per year.” Tough decisions have been warranted to attempt to maneuver the scheme down to the National Cabinet agreed “8 per cent by next year.”
The numbers speak to the seriousness of the situation, “But, even under that scenario, the NDIS is still forecast to cost $105 billion and will increase its share of GDP by 0.5 per cent over the coming decade.”
“That’s the equivalent of growth in Medicare, Defence and Aged Care spending combined – measured as a share of GDP.”
Minister Butler acknowledges, “Getting growth down from 22 per cent to 8 will certainly be a substantial achievement.” A core strategy in trying to bring growth into a sustainable position for the Australian taxpayer, Minister Butler advises, is to tackle the significant problem of “new participant number remain[ing] high.”
And while Minister Butler highlights what Australians are saying about the scheme, “Recent research by Talbot Mills found that 7 in 10 Australians agreed ‘the NDIS plays a vital role in improving the lives of people with a disability’.” In the same breath he notes that the same research found that, “7 in 10 also agreed that ‘the NDIS has grown too large and is struggling with inefficiencies and dodgy providers’.” And that, “Six in ten agreed the NDIS is ‘broken’.”
To ensure that the scheme’s, “North Star” is met, “supporting people with significant and permanent care and support needs” Minister Butler and his team’s focus has now focussed to tackling the “unintended aspect of the scheme’s roll-out – namely, its enrolment of large numbers of young children with mild to moderate developmental delay and autism.”
Minister Butler highlights that the number of people with disability entering the scheme has stablised for the most part, except for one key area, children with developmental delay or autism.
Minister Butler notes, “I think most Australians would be alarmed to know that 1 out of every 10 6-year-olds are in the NDIS, including 16 per cent of 6-year-old boys.”
The numbers are stark, “Tens and tens of thousands of young children with mild to moderate developmental delay or autism are on a scheme set up for permanent disability.” The sheer numbers and impact on the sustainability of the scheme has spread to all levels of government, and touched numerous sectors.
Yet critically, experts in the field have raised the alarm about the inefficiency of the NDIS scheme to effectively support early intervention measures for kids with mild to medium autism, highlighting a waste of tax payer money and inefficient support for these kids and their families.
Minister Butler and his team have heard these calls for reform, noting that, “I doubt very much this is what most of their parents really wanted or expected [navigating NDIS].”
“But it’s all they’ve had available – the only port in the storm, if you like.”
Continuing he says, “They are desperate – absolutely desperate – to get their children diagnosed because we’ve made it the only way they can get help.”
“Families looking for additional supports in mainstream services can’t find them, because they largely don’t exist anymore. And, in that, governments have failed them.”
Sharing what many advocates and experts have been saying, “The NDIS model just doesn’t suit their needs.”
Delving to the core of the NDIS model, Minister Butler acknowledges, “Individualised plans and budgets make sense for people with lifelong disability – giving them more choice and control over the support they receive.”
“But families with a young child who’s missing some milestones aren’t best helped by receiving a budget of $10, $20 or $30,000 and being expected to work out how to spend it.”
Speaking additionally to the waste that many have highlighted in the unsustainability of the NDIS scheme, Minister Butler notes, “And, frankly, many of those children are then being over-serviced.”
“On average – just average – a young NDIS participant with moderate needs is receiving more than 70 therapy sessions per year.”
He asserts, “There is no evidence I’m aware of that supports children being taken away from learning and other activities for that much therapy.” The inefficiency of the scheme does not just have a consequence on the ballooning costs of the NDIS scheme but has entrenched the children in this group not receiving the targeted support that results in sustained progress and independence.
Minister Butler notes, “Children with mild to moderate developmental delay or autism need a robust system of supports to help them thrive.” Unveiling the new scheme, “A Program for Thriving Kids.”
“And that’s the program I intend to deliver.”
In his address, Minister Butler articulates, “Diverting this group of kids over time from the NDIS is an important element of making the scheme sustainable and returning it to its original intent.” Emphasising, however, “More important than sustainability, though, standing up a robust program for Thriving Kids is what these children and parents need – sooner rather than later.”
“They need the Commonwealth and states to work together and to commit on an ongoing basis to funding it together.”
“And I make that commitment on behalf of the Commonwealth.”
The Commonwealth has committed to a provision of $2 billion dollars for the rollout of Thriving Kids, with an invitation for states to partner in the scheme as well.
When it comes to NDIS, Medicare, Thriving Kids, Minister Butler notes, “None of these programs can operate on a ‘set and forget’ basis. He states, “They all require constant vigilance, to ensure they’re delivering for Australians who need them – and represent value for money for taxpayers.”
“And that approach will guide how we secure the future of our world-leading NDIS.”
