The National Commission of Audit has released their Phase One and Phase Two Reports and, as anticipated, changes to the rollout of the NDIS have been recommended along with possible budget restrictions.
The Commission was established by the Australian Government as an independent body to review and report on the performance, functions and roles of the Commonwealth government.
In what many in the disability sector will see as a blow to the NDIS, the Commission has stated that while it believes the NDIS should continue to be supported, it “should be implemented in a way which is fiscally responsible and minimises risks of higher than expected spending.”
“This can be achieved by exercising budget control to ensure the long-term sustainability of the NDIS,” the Report states.
It also states that indications from the trial sites suggest that the average package cost is around $46,000 per participant per year, compared with an estimated average cost of $35,000 per participant per year that was factored into the initial design and costing of the scheme.
The Every Australian Counts campaign, of which Vision Australia is a signatory, disputes this and stated that “participation in the scheme at the trial sites has doubled and funding has dropped to just under the average cost per person recommended by the Productivity Commission.”
Recommendations detailed in the Report link financial uncertainties to their case to delay the full rollout of the scheme.
With the Commonwealth bearing the majority of the risk of any cost overruns (all extra costs during the trial and transition and at least 75% of cost overruns of the mature scheme), you can understand their caution.
Other risks identified in the Report include workforce shortages and increased labour costs; service delivery quality control and capacity constraints; and IT development and infrastructure delays.
Aside from managing financial risks, the Commission suggests that “a roll-out over an extended period would allow lessons learned from the early results (for example around expected average package costs) to be incorporated into the scheme’s design.”
While there may be merit in pursuing a slower rollout schedule, an extended phasing of the scheme will need to be negotiated with the States.
Read the full Commission of Audit Report online.