The National Disability Insurance Scheme (NDIS) is founded on the ideals of the free market, with people with disability being active consumers who’re able to make choices about where they spend their funding to receive the support that suits them best.
But choice and control doesn’t have the same impact when choice is limited.
And choice could become challenging, it seems, with 21 per cent of providers who responded to a national survey detailed in the National Disability Services (NDS) State of the Disability Sector Report, saying they’re considering getting out of the sector entirely.
Their considerations could be linked to the fact that half the provider respondents to the survey reported they made a financial loss in the 2023-2024 financial year, while just 13 per cent broke even. Additionally, 80 per cent of respondents said they were concerned they wouldn’t be able to continue providing NDIS services at the rates outlined in the current NDIS Pricing Arrangements and Price Limits (the Price Guide).
Why does this matter to participants? Well… because, if providers can’t cover their expenses – including staff training, compliance, recruitment, retention, filling vacancies or finding new clients – they’re at risk of shutting up shop, leaving participants with less choice or, even more critically, at risk of being unsupported.
And all of this is happening against the backdrop of the rising cost of living that’s impacting all Australians. Utility bills have gone up, insurance premiums have increased, petrol prices have surged, and yet many items in the Price Guide have remained the same for at least five years.
Weigh all that up and the maths is simple – it costs more today to do business.
NDS CEO, Michael Perusco, says the State of the Disability Sector Report shows it’s vital the National Disability Insurance Agency works with providers to achieve policy settings so providers can continue to serve and support people with disability and their loved ones.
"We are particularly concerned about the likely closure of some long-standing services across the country. This will leave people with disability with fewer options and some with very complex needs will have no other options at all,” says Mr Perusco.
"These organisations are acting as the safety net for people, particularly when there are no suitable alternative federal, state or non-government supports available.
"It is incredible to see the adaptability and resilience of many service providers in a tough environment as they continue to work hard to support to people with disability, but they too need support to keep going.”
So, what does the future hold?
The NDS survey found almost all providers (96 per cent) are working hard to improve productivity and 51 per cent want to expand their operations, but they can’t do that much longer under current conditions without government support.
“What’s needed is assistance with innovative measures to improve productivity, fair funding that supports sustainable services, and action to build a stronger workforce and provide more employment opportunities,” says Mr Perusco.
There is a will and a drive to work smarter and be creative to find solutions for participants. But no-one operates in a vacuum and NDS warns that the Federal Government – which controls much of the way the NDIS operates – must support effective operations for providers. Meanwhile, it says state and territory governments must ensure foundational supports are in place, in order to contribute to the sustainability of the NDIS.
The Scheme is Australia’s biggest social reform since Medicare. And that means we owe it to each other and the people with disability who are participants – or who will join as participants – to get it right, now and in the future.
