Greens Claim Cap on NDIS Spending a ‘Broken Promise’ to Disabled Australians

Western Australian Greens Senator Jordan Steele-John in the Senate at Parliament House in Canberra, Australia on July 4, 2019. (Tracey Nearmy/Getty Images)

The Australian Greens have called the federal government’s decision to place a cap on the National Disability Insurance Scheme (NDIS) a broken promise to disabled Australians.

The cap, announced on April 28 after the National Cabinet meeting, limits the growth target for the NDIS to eight percent by July 1, 2026, allowing for “further moderation” as the scheme matures.

NDIS Minister Bill Shorten said it would ensure its future.

“These reforms are about ensuring the future of the Scheme in the best interests of the participants, and our reboot is making sure every dollar gets through to the people the Scheme was designed for, NDIS participants with severe and permanent disabilities, “ he said.

“We will work together with people with disability and the sector to implement these initiatives to ensure we get it right and people with disability are with us every step of the way.

The ballooning cost of the NDIS, which is set to eclipse the Medicare and federal education budget, has been a major concern for economists worried about the state of Australia’s finances.

Broken Promise to Disabled Australians

However, the Greens spokesperson for Disability Rights and Services, Senator Jordon Steele-John, who suffers from cerebral palsy, said that too many disabled people were not getting support. 

“Labor’s announcement to have a target for spending growth is sounding a lot like a cap on the NDIS. The notion of a cap is a broken promise from the Albanese government and is causing tremendous concern in the disability community,” he said.

Steele-John warned that if funding is capped then the NDIS would receive $50 billion dollars less over the coming decade.

Currently, the Scheme is set to receive $35.5 billion in public funding, which includes $34 billion in participant costs and additional expenses associated with the administration of the National Disability Insurance Agency.

“De-funding the NDIS by this amount is completely unacceptable,” Steel-John said.

He also warned that the Greens would be watching the federal government for any proposed changes to the rules on who can and cannot get NDIS support.

“The NDIS provides disabled people with the opportunity to participate in the community, go to work, and do the basics like have a shower. There are social and economic benefits to the NDIS.”

PM Pushes Back on Criticism

However, Prime Minister Anthony Albanese has pushed back saying the government would “make sure that the NDIS continues to deliver for people with disabilities.”

“Our focus is making sure that the position is sustainable,” he told reporters on April 27.

“No one is talking about any cuts here. We are talking about growth of eight percent annually. It is still a substantial growth.

“We know that there has been some fraud in the scheme. We know that there are various things that need to be looked at in order to ensure that every dollar of taxpayers’ money that Australians can have the confidence that it’s going into improving the lives of people with disabilities.”

Change to NDIS Inevitable

Meanwhile, the chair of the National Disability Insurance Agency, Kurt Fernley, said the scheme does need restructuring but has vowed to keep vulnerable people at the heart of the program. Fernley is a former Australian gold medalist Paralympian.

“So many people with disabilities, they hear the word ‘cap’ and shudder. I shudder,” he told ABC Radio National on May 1.

“We are a demand-driven scheme. The target is a bit of a challenge.”

He said conceded that there was a concerning growth in the cost of the scheme while adding that the overseeing body had moved to deal with it already.

“We’ve always said that if we put the participant at the heart of what we do, we will get better outcomes and will also save money,” he said.