Health Minister Unable to Quantify NDIS Savings Despite Major Hospital Funding Agreement
The federal Health Minister has been unable to specify how much proposed reforms to the National Disability Insurance Scheme will save the Commonwealth budget. This comes immediately after the Albanese government finalised a long-awaited hospital funding deal with state and territory administrations.
Major Hospital Funding Injection Secured
After protracted and difficult negotiations, the federal government has locked in a significant hospital funding agreement. The deal will provide an additional $25 billion to state and territory governments over the coming years. The agreement was finally struck on Friday, following multiple rounds of previously unsuccessful talks.
These negotiations were part of a broader plan that also aims to curb the rapid growth in spending on the NDIS. The government's objective is to limit the annual growth rate of NDIS expenditure to six per cent.
Key Autism Program Implementation Delayed
In related developments, the start of a significant program designed to transition children with mild to moderate autism off the NDIS has been postponed. The $2 billion Thriving Kids scheme, which would move these children into state-based support programs, has been delayed by several months. Its full implementation is now not expected until 2028.
Minister Admits Uncertainty Over Savings
When questioned on Sunday, Health Minister Mark Butler openly admitted he could not provide a figure for how much the proposed NDIS changes would yield in budget savings. The NDIS is a $50 billion per year program, making it one of the Commonwealth's largest financial commitments.
'This is a very big program for the Commonwealth,' Minister Butler told Sky News. 'We've got to go through a budget process to work out the timeframe for getting growth rates down. We've got to go through a process with the disability community to co-design the changes that will deliver those savings.'
Butler attributed the current financial pressures to the scheme's rapid expansion under the previous coalition government, stating the NDIS had 'got off the tracks.'
Political Reaction and Criticism
Opposition health spokeswoman Anne Ruston offered a mixed response to the announcements. While welcoming the additional hospital funding, she strongly criticised the lengthy two-year negotiation process.
'Quite frankly, two years to negotiate a deal and leaving the states and territories and Australians who need hospital services in limbo is really quite unacceptable,' Senator Ruston stated.
She argued that the states required this extra funding primarily due to failures of the Albanese government. Ruston echoed criticisms from various state governments—both Labor and Liberal-led—regarding hospital bed-blocking caused by aged-care shortages.
'We've seen thousands and thousands of older Australians that are bed-blocked in our hospital system, costing hundreds of millions of dollars, because of the government's failure in aged care,' she said.
Positive News on Prostate Cancer Medication
In a separate health announcement on Sunday, Minister Butler revealed positive news regarding prostate cancer treatment. Australians diagnosed with an aggressive form of prostate cancer will save approximately $900 on scripts for a newly subsidised medication called Andrigo-10.
This drug works by blocking the hormones that fuel cancer growth. It will now be available to patients for $25 per script, or just $7.70 for those holding a concession card.
'(Prostate) cancer is the most common cancer for men ... and still takes about 4000 men's lives every single year,' Butler emphasised, highlighting the significance of this subsidy.
The government's efforts to manage the NDIS's growth come as the scheme's expenditure is projected to surpass that of Medicare, underscoring the critical need for sustainable financial management.
