Labor’s plan to crack down on lawyers and consultants “rorting” the NDIS will do little to stop the scheme hitting $60 billion a year by the end of the decade.
Labor’s plan to crack down on consultants and lawyers “rorting” the National Disability Insurance Scheme will do very little to rein in costs that are on track toThe big budget problem for the NDIS is largely uncapped financial support for half a million participants, compared to fixed subsidies for aged care, pensions, Medicare, pharmaceutical drugs and unemployment.
Participants are required to be diagnosed with substantially reduced “functional capacity” or “psychosocial functioning” in either communication, social interaction, learning, mobility, self-care or self-management. “At the other end of the life cycle, when people on the NDIS get into the scheme in their 60s and 70s, the level of funding is a lot more expensive than aged care.”
“The sustainability issue refers to why the total cost and cost per participant has gone so far above the original estimation, and whether or not Australia can afford it – especially in light of large budget deficits and growing national debt.
But the overall savings would be a “rounding error” compared to the annual cost that is projected to hit $45 billion by 2026.The Coalition government tried to introduce “independent assessments” as a second opinion on people’s eligibility, but gave up after resistance from Labor, state governments and the disability sector.
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