Bureaucrats urged Labor to review deals that force the federal government to cover budget overruns in the National Disability Insurance Scheme.
The Albanese government was warned that it would soon be on the hook to pay for more than 70 per cent of the cost of the rapidly expanding NDIS, with bureaucrats urging Labor to review deals that force the government to cover budget overruns.
“While state and territory governments are co-stewards of the scheme, they are not equal financial partners,” DSS said in advice in May to Disability Minister Bill Shorten and Social Services Minister Amanda Rishworth.“As the Commonwealth contribution continues to grow relative to those from states and territories, with the Commonwealth share of participant support costs expected to exceed 70 per cent in 2025-26, an examination of current arrangements is considered vital.
“This is just another example of how they mismanaged funding of one of the nation’s critical safety nets.”“However, we are engaged in a positive discussion with the states and territories about ensuring people with disability are better supported by mainstream services outside the NDIS.”, alongside health, aged care, defence and the growing interest bill on government debt. The annual running cost of the program now exceeds Medicare.
“Some of the government’s election commitments will only be able to be implemented with state and territory agreement; in some cases, unanimous agreement,” DSS said.The document said participants and disability advocates were becoming “increasingly vocal” about the adequacy of their payments.
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