‘Needs’ test plan to slow surging NDIS costs

• information gathering based on needs rather than a “price guide”;
• the setting of individualised budgets with flexibility on how they are spent; and
• the actioning of budgets, so participants can “use the funds in a way that makes sense for them”.

“A suitably well-trained and qualified person would spend time gathering all this critical information from the participant and their family, as well as, where appropriate, professionals who work directly with the participant,” Professor Bonyhady said.

“Unlike independent assessments, there would be no shortcuts – because we know that this information gathering step is crucial to ensuring the budget is right.”

The Morrison government began rolling out independent assessments in 2021 to stop better informed and organised applicants gaming the system to win bigger support packages from the NDIS.

Under pressure from then opposition spokesman Bill Shorten, the previous government stopped the rollout of the newly formed independent assessment approach after heavy criticism by the disability community that it was impersonal and heavily rule-bound.

As NDIS minister, Mr Shorten has committed to capping budget growth at 8 per cent amid projections the scheme could cost more than $100 billion by 2030.

Professor Bonyhady signalled support for children with developmental concerns and delays should be “primarily” delivered through “mainstream” educational and community services.

This will require state and local governments to step up support and is an attempt to cap surging NDIS autism claims. More than a third (215,000) of all current NDIS plans (611,000) are for autism conditions, the latest NDIS quarterly report says.

And in an attempt to stop service providers seeking out repeat customers rather than delivering better outcomes, Professor Bonyhady is calling for much tighter oversight by government of these providers.

“The market is not delivering enough of the right supports in the right locations, let alone creating value or innovation,” he said.

“The panel believes that government needs to step in and steward the market. We also believe that participants need to have a greater say in how the market and services are shaped.”

Professor Bonyhady said the central reform the review will push for is a building out of what he described as “community-wide” services.

“In the 2.0 version of the NDIS we need to focus on the community-wide stage of the build.

“The NDIS cannot be all things to disability and so you cannot fix the NDIS without fixing everything that sits around it.

“It is in the national interest that governments should finish the job of building the NDIS and its ecosystem, as was envisaged in 2013.”

This would require a new inter-governmental agreement between the Commonwealth and the states and territories, with responsibilities clearly set out through multilateral and bilateral agreements.

Professor Bonyhady did not indicate the fiscal impact of the proposed reforms.