Prime Minister Scott Morrison has warned that the future of Australia's National Disability Insurance Scheme (NDIS) is at risk unless its soaring costs are brought under control. In a pre-budget speech, Morrison stated that the scheme's expenses have exceeded initial forecasts and are projected to surpass A$26 billion (£15 billion) next year, with further growth expected.
Morrison emphasised the need for responsible management of increasing costs to ensure the NDIS remains viable for future generations. He noted that 'reasonable and necessary supports' must have boundaries to maintain affordability and fairness for all participants. The scheme currently supports nearly 450,000 children and adults, with numbers anticipated to rise to 530,000 in the coming years.
The government recently paused plans to introduce independent assessments for all NDIS recipients following widespread backlash, but Morrison insisted the assessments must proceed. He argued that reforms, including independent assessments and personalised budgets, are designed to make the NDIS fairer and more sustainable.
The upcoming federal budget will allocate an additional A$13.2 billion (£7.6 billion) for the NDIS between 2021 and 2023-24. The Commonwealth currently covers 55% of participant costs, a share expected to increase to 58% next year. Rising costs are attributed to growing participant numbers and higher-than-expected payments for support plans.
