Butler open to NDIS changes but convinced it's heading in 'right direction'

Australian Health Minister Mark Butler has labeled criticism from state and territory disability ministers regarding the National Disability Insurance Scheme (NDIS) overhaul as "extraordinary." He stated this in response to their concerns, particularly given the states' prior agreement to a plan aimed at reducing NDIS spending.

Treasury modeling released this week projects that more than 240,000 individuals will leave the scheme within four years as part of a decade-long effort to cut $35 billion. Concurrently, a Senate inquiry has gathered over 4,000 public submissions from the disability sector in just over two weeks, highlighting widespread concerns.

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I think that submission was an extraordinary submission, given the clear commitments that premiers signed on to a few months ago, in exchange for which the Commonwealth has made available $25 billion in additional funding to hospitals.

State and territory disability ministers have warned that without a "careful, coordinated approach," many people with disabilities could be left without services. They argue that the states are not prepared to deliver equivalent services to those exiting the NDIS and that this could lead to people with disabilities ending up in inappropriate settings like hospitals or having no access to services at all.

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There is a significant risk that people with disability will end up in hospitals or other settings that are inappropriate and unable to meet their needs, or have no access to services at all.

Minister Butler dismissed these concerns as "posturing," asserting that individuals would not be left without support. He reminded the states of their commitments made in exchange for $25 billion in additional federal funding for hospitals. He suggested that the community expects all governments to proceed with delivering improved hospital services and securing the NDIS for the long term.

While state ministers acknowledged agreeing to an NDIS reduction, they contend that the specific implementation plan was not finalized during the January national cabinet meeting. They also expressed reservations about proposed new powers for the NDIS minister to further cut the scheme, calling for genuine consultation.

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States and territories are not in a position, and have made no agreement, to deliver like-for-like services to people who are exited from the NDIS.