NDIS: New legislation aims to cap 11pc growth of National Disability Insurance Scheme

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Experts say new powers to thwart unscrupulous care providers encouraging disabled people to overspend will help cap surging costs.

Already a subscriber?New rules to stop NDIS participants from overspending on their plans will help stem costs for the $42 billion scheme, but will need to be urgently applied to cap the 10 per cent-plus annual growth in plan costs, say experts.introduced into parliament Wednesday

The legislation sets up a framework for giving participants a global budget rather than an itemised budget and one based on needs rather than diagnosis. It means participants will be able to adjust their spending according to their changing needs, rather than applying for more funding.There will also now be a list of what people can spend their money on and power for officials to step in to counter overspending.

“Often the way it works is that from year to year, somebody says, ‘well, I need everything I had last year, but I also need this thing’. You’ve got an extra line item and that sort of contributes to inflation.” But former NDIS strategist Hassan Noura recommended stemming plan costs and the number of participants and called for urgent action to “pressure test” new applicants.

 

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