From NDIS cost revisions to a new employment program, what's in the budget for disability? (2024)

Between significant revisions to the National Disability Insurance Scheme (NDIS) and new employment initiatives, disability was a key part of this year's federal budget.

But now the dust has settled, the standout questions, particularly regarding the NDIS, don't centre on the specifics that were in the papers, they're about those that weren't.

Here are the key takeaways.

NDIS 'growth moderation'

It's been a massive few months for the scheme, with a major review handed down in December recommending sweeping changes and the government introducing draft legislation to kickstart that process.

The 2024 budget papers say the government expects those changes will "offset increases in NDIS payments" to the tune of $14.4 billion over the next four years. The government isn’t calling this a saving, but "growth moderation".

The government says spending on the scheme is now projected to rise to $60.7 billion by 2027-28 and, thanks to its action, annual growth is forecast at 9.2 per cent.

The government last year announced an annual growth target of 8 per cent to try to rein in costs. At the time, annual spending had been growing at about 14 per cent.

NDIS Minister Bill Shorten talked through the measures on ABC's Afternoon Briefing program, which you can watch in full below.

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Mr Shorten says "two practical changes" will help realise 95 per cent of the projected $14.4 billion figure.

Roughly two thirds of those savings, he says, will come from clamping down on "intra-plan inflation"— when a participant's plan is spent sooner than the period for which it was agreed, which can then lead to a top-up.

The rest comes from implementing the NDIS review's proposal to change the way participant budgets are set.

"What we want to do is hire trained assessors and we want to look at a person's total needs. And instead of constructing a plan brick-by-brick, we look at a person's overall needs and give them a budget," he says.

"We estimate that's actually going to save money."

Mr Shorten told participants the government remained committed to the scheme, saying "it will increase in numbers and we are increasing investment but ... we need to bring it to a more reasonable growth level".

He emphasised the transition to a needs-based assessment would be co-designed with the disability community.

From NDIS cost revisions to a new employment program, what's in the budget for disability? (1)

The talk of change has fed into fear in the disability community that it could come at the expense of people's support.

El Gibbs, the acting CEO of Disability Advocacy Network Australia, says many people with disability are worried about exactly how the budget will affect them.

"The NDIS is an essential public service for people with disability and families, providing life changing and lifesaving supports every day," she says.

"The budget has revealed big changes to the scheme ... right at the time when the NDIS review and the disability royal commission have shown how far from equal or included we are. We must not see our essential supports cut, or our continued exclusion from the community."

The government has also pledged an additional $468.7 million for the scheme over four years, which includes more funding for fraud prevention, as well as an "evidence advisory committee" to provide advice about the kinds of supports that work for participants.

There's also $129.8 million over two years for consultation work to respond to the findings of the NDIS review.

Foundational supports were recently the focus of a political stoush between the federal and state governments.

A pledge of $11.6 million over two years was made towards creating a "foundational supports strategy" in the 2023-24 mid-year budget update.

The government says national cabinet will consider that strategy later this year, with an investment in the supports themselves to "be detailed in future economic updates".

Ms Gibbs says foundational supports must be in place before any changes to the scheme take effect.

The NDIS has more than 649,000 participants, according to the most recent quarterly report, however the vast majority of the estimated 4.4 million Australians with disability are not on the scheme.

An employment service revamp

One of the biggest challenges for people with disability continues to be finding and keeping a job.

The unemployment rate of working-age people with disability is twice that of those without disability.

The budget aims to address this with a new specialist disability employment program, at a cost of $227.6 million over five years, to replace the existing Disability Employment Services (DES) by July next year.

"The new program will seek to shift the culture in employment services for people with disability," the announcement says.

When people with disability join DES agencies, they're supposed to be supported to complete job applications, prepare for interviews and undertake relevant training.

But advocates have long had questions about their efficacy, as some people have been with these agencies for lengthy periods with no results.

Concerns have also been raised the model is more beneficial for providers than people with disability, while a disability royal commission report found DES was failing to provide appropriate support.

The government has also put a price tag of $23.3 million over four years on setting up a new Disability Employment Centre of Excellence.

It says the centre, which was an election promise, will provide information and training so employment services offer a better-quality service.

People with Disability Australia president Marayke Jonkers says the measures don't go far enough.

"There's tinkering at the edges on employment for people with disability but we've been calling for a radical shift. We didn't see that," she says.

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"It's not clear how the government will support the transition to open employment for all people with disability. We remain concerned measures announced tonight may continue to entrench segregated employment and deny people with disability access to mainstream opportunities."

What else is and isn't in the budget?

First, here's what was included.

An extra $2.6 million has been set aside for the National Disability Abuse and Neglect Hotline and the Complaints Resolution and Referral Service. They facilitate the confidential reporting of abuse and receive complaints about disability services outside the NDIS.

Now for what wasn't included – at least officially.

Advocates were disappointedthere was no explicit mention of funding for the government's response to the disability royal commission, which wrapped up last September after more than four years of hearings.

Social Services Minister Amanda Rishworth did not answer questions about whether the budget had any money for the royal commission response, but said the Commonwealth has been "working closely with states and territories to form a position on the 85 joint recommendations".

She reiterated governments were still aiming to provide an initial response by mid-2024.

Some people had also been hoping for a boost to the Disability Support Pension (DSP).

While the budget has included some cost-of-living and Centrelink-related measures, the DSP was untouched.

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From NDIS cost revisions to a new employment program, what's in the budget for disability? (2024)

FAQs

How much is the NDIS budget in Australia? ›

National Disability Insurance Scheme (NDIS)

Key funding includes: $214 million over two years to fight fraud and co-design reforms. $160.7 million for IT upgrades to the NDIS Quality and Safeguards Commission. $45.5 million to establish a NDIS Evidence Advisory Committee.

What is the projection for NDIS? ›

The annual bill for the National Disability Insurance Scheme is projected to blow out to more than $125 billion a year by 2034 amid warnings the number of participants could more than double.

What is in the US budget? ›

The United States budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government, reflecting historical debates and competing economic philosophies.

What is the average NDIS funding? ›

The average payment for the 12 months ending 31 March 2022 is $55,200 ($39,700 for participants not in Supported Independent Living and $327,900 for participants in Supported Independent Living). Northern Territory has the highest average annualised plan budgets and payments.

What are the three budget components of an NDIS funding package? ›

There are three types of support budgets that may be funded in your NDIS plan: Core Supports budget. Capacity Building Supports budget. Capital Supports budget.

What is the most common disability in NDIS? ›

Autism: 35% of the participants in the NDIS (214,880 people) have a primary disability of autism, making it the most common disability for NDIS participants. 78% of participants with autism are aged 18 and under, and 70% are male.

What are the three types of NDIS plans? ›

There are three options to manage your NDIS funding - self-managed, plan-managed and NDIA-managed.

What is an example of NDIS funding? ›

The types of supports that the NDIS may fund for participants include: daily personal activities. transport to enable participation in community, social, economic and daily life activities. workplace help to allow a participant to successfully get or keep employment in the open or supported labour market.

What are the three biggest expenses in the federal budget? ›

CBO: U.S. Federal spending and revenue components for fiscal year 2023. Major expenditure categories are healthcare, Social Security, and defense; income and payroll taxes are the primary revenue sources.

What is the most common budget? ›

In the 50/20/30 budget, 50% of your net income should go to your needs, 20% should go to savings, and 30% should go to your wants. If you've read the Essentials of Budgeting, you're already familiar with the idea of wants and needs. This budget recommends a specific balance for your spending on wants and needs.

What will the NDIS budget be in 2030? ›

Spending on the National Disability Insurance Scheme is expected to blow out to $64 billion a year in 2030, even higher than previously estimated, according to an external actuarial review commissioned by disability ministers.

Do you get money from the NDIS? ›

The NDIS provides funding to eligible people based on their individual needs.

What is low cost at NDIS? ›

Low cost assistive technology is an umbrella term that covers pieces of equipment, software, applications or other items valued under $1500, that help people complete everyday tasks they otherwise could not do on their own.

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