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🇦🇺 Australia /Economy & Trade

Australia to Crack Down on Unregistered NDIS Providers to Save $6 Billion Annually

From ABC Australia · (1d ago) English Critical tone

Translated from English, summarized and contextualized by DistantNews.

TLDR

  • Australia plans to crack down on unregistered National Disability Insurance Scheme (NDIS) providers to save an estimated $6 billion annually by 2036.
  • NDIS Minister Mark Butler highlighted that 15 out of 16 NDIS providers are currently unregistered, unlike the regulated aged care sector, creating gaps in quality and oversight.
  • The government will leverage previous NDIS review recommendations, including a tiered registration model, to reform the system and control costs, which have been growing unsustainably.

The Australian government is set to implement significant reforms aimed at reining in the escalating costs of the National Disability Insurance Scheme (NDIS). Minister for NDIS, Mark Butler, has signaled a strong intention to tackle the issue of unregistered providers, which he believes are contributing to the scheme's unsustainable growth. With the NDIS costing taxpayers approximately $50 billion, the government aims to save over $6 billion per year by 2036 through these measures.

15 out of 16 NDIS providers are unregistered

— Mark ButlerNDIS Minister Mark Butler expressing concern over the high number of unregistered providers.

Butler expressed surprise at the high proportion of unregistered NDIS providers, noting that a stark contrast exists with the aged care sector, where all providers are regulated. This lack of regulation in the NDIS has led to concerns about quality, oversight, and pricing, particularly for participants who manage their own plans. The government views correcting this unregulated market as a top priority.

correcting that unregulated market is at the "top" of the government's priority list.

— Mark ButlerNDIS Minister Mark Butler emphasizing the government's focus on regulating the NDIS market.

Instead of initiating new lengthy reviews, the government will build upon existing work, notably the NDIS Review led by Professor Bruce Bonyhady and Lisa Paul. This review's recommendations, developed over two years with extensive consultation from the disability community, remain a crucial guide. A key recommendation was the implementation of a tiered, risk-based registration model for all providers. This proposed model could involve a four-tiered system, with varying levels of registration, potentially reducing burdens for some low-risk providers while requiring in-depth assessments for high-risk support services.

remain a crucial guide for our government

— Mark ButlerNDIS Minister Mark Butler referring to the recommendations from the NDIS Review.

The issue of provider regulation has been considered before, with the former Coalition government opting against mandatory registration due to concerns about market impact. However, Butler has pointed to a growing number of reports detailing 'shonks and fraudsters' exploiting the system and distorting the care economy. Angus McFarland, secretary of the Australian Services Union, echoed these concerns, stating that the experiment with unregistered providers has demonstrably failed to ensure significantly safer or higher quality services compared to a decade ago.

drumbeat" of stories about "shonks and fraudsters" ripping off taxpayers in a new market that is distorting the entire care economy.

— Mark ButlerNDIS Minister Mark Butler describing the issues arising from the unregulated NDIS market.
DistantNews Editorial

Originally published by ABC Australia in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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