The Australian government has quietly established a taskforce to drive budget savings in the National Disability Insurance Scheme (NDIS), as it seeks to curb spending growth ahead of next month's federal budget. The NDIS Sustainability Taskforce, led by former Treasury official Anthea Long, was set up within the health department earlier this year following a 30 January meeting between Prime Minister Anthony Albanese, state premiers, and Health Minister Mark Butler.
The taskforce, which was not publicly announced, is tasked with advising on cost-cutting options for the $52bn programme. NDIS spending grew by 10.3% last year, exceeding the government's target of 8%, which Butler has described as 'simply unsustainable'. The government aims to bring annual growth down to between 5% and 6%.
NDIS changes are expected to feature in the May budget, which Albanese and Treasurer Jim Chalmers have described as Labor's most ambitious yet. The scheme is forecast to cost $52bn this financial year, surpassing aged care and Medicare, and could overtake defence spending on its current trajectory. Without changes, NDIS spending was projected to exceed $63bn by 2028-29.
A health department spokesperson confirmed the taskforce's establishment, stating it is 'progressing work on delivering a sustainable NDIS for current and future generations of Australians with disability'. The taskforce aligns with a national cabinet commitment to target annual cost increases of 5% to 6%. Additionally, the government and states have agreed to spend $4bn on a new programme called Thriving Kids, aimed at children with autism and developmental delays, with a 50/50 cost split.
Opposition Leader Angus Taylor has called for the NDIS to use taxpayer money effectively, urging the removal of fraud. As part of broader savings, cabinet ministers and department heads have been asked to propose budget cuts of up to 5%.
