To the Editor,
NDIS changes need input from participants
Recent criticism of the National Disability Insurance Scheme as an economic burden overlooks its critical role in supporting Australia’s economy and communities (‘‘NDIS cost blowout adds to inflation’’, September 27).
We agree, there are issues within the NDIS that need urgent reform, particularly around red tape, inefficiencies and accountability. These must be addressed to ensure the NDIS remains sustainable and delivers essential benefits to people with disabilities and the broader economy.
Economic benefits and multiplier affect
The NDIS channels funding directly into communities, supporting jobs in the disability, health and allied sectors, while fostering economic activity in sectors including retail, housing and hospitality. The multiplier effect of this spending is substantial.
Every dollar invested in the NDIS generates significant returns, through the jobs it creates and the economic participation it enables for people with disabilities. In regions where traditional industries such as manufacturing have declined, NDIS funding has created jobs that are local, sustainable and not subject to outsourcing.
Challenges that need reform
The scheme’s administrative complexity and layers of bureaucracy are driving up costs and making it different for participants to access the supports they need. Red tape and inefficiencies, often stemming from the overcomplicated processes within the Australian Public Service, are significantly inflating the cost of services. One example is the Salesforce Customer Relationship Management (CRM) installation, which exceeded its budget by more than $200 million.
Fraud and mismanagement are also significant concerns. The government has taken steps to crack down on fraudulent activities. However, stronger protections are needed to ensure robo-debt is not repeated – the current legislation allows public servants to issue fines and debts without appeal or oversight of the courts. Fraud prevention measures must be balanced with reduction in red tape, ensuring that honest participants and providers are not burdened by excessive administrative hurdles.
Oversight and governance
Another area of concern is the unprecedented power granted to public officials under the new NDIS laws coming into effect in October. These give officials significant discretion over participants’ budgets and supports, but provide limited avenues for external review or accountability.
Some legal scholars have raised questions about the constitutionality of these reforms, particularly around the concentration of power in a few public servants. This echoes the issues highlighted by the robo-debt royal commission, where unchecked power and a lack of accountability within the APS led to one of Australia’s worst public policy disasters.
The promise of co-design
While the government has repeatedly promised ‘‘co-design’’ with the disability community, we are still waiting to see this materialise in any meaningful way.
Time and again, we have had consultation, only to be told at the last minute of the government’s interventions, with little opportunity to provide input or shape the outcome. Co-design must mean genuine partnership in decision-making, where people with disabilities, their families and carers have a real voice in shaping the future of the NDIS.
The NDIS is a critical investment in Australia’s economy, but it urgently needs reform of the right kind, developed and in partnership with the disability community.
Yours Faithfully, for and on behalf of Physical Disability Australia,
Andrew Fairbairn (PDA’s Interim Executive Officer), and Tim Harte (PDA’s Acting President)