Navigating NDIS Reforms | Proposed Key Recommendations

Navigating NDIS Reforms

Significant reforms, going well beyond bureaucratic tweaks, have been recommended in the long-awaited National Disability Insurance Scheme (NDIS) Review.  In this investigation, we examine the concrete effects of proposed NDIS policy modifications, designed to ensure the NDIS is “not the only lifeboat in the ocean”.

Background

On 18 October 2022 The Minister for the National Disability Insurance Scheme, the Hon Bill Shorten MP, announced a review of the NDIS with the objectives of putting people with disability at the centre of the scheme, restoring trust, confidence, and pride in the scheme and ensuring its sustainability for future generations.

The final report makes 26 recommendations with 139 proposed actions designed to be implemented as a whole.  The report's recommendations and actions will also need to be considered in the context of the Disability Royal Commission into Violence, Abuse, Neglect, and Exploitation of People with Disability.

Summary of the Proposed Key Recommendations:

Accessing the National Disability Insurance Scheme (NDIS)

The process of accessing the NDIS will rely less on a diagnosis and more on the functional impact of the diagnosis on individuals' everyday lives. This change, is designed to ensure a fairer access process.

The NDIS will also pay for the necessary reports to demonstrate eligibility for the NDIS and provide assistance in applying for the NDIS.

Foundational Supports for All

The initiative to create "Foundational supports for all people with disability" envisions a comprehensive system of support for individuals who do not qualify for the NDIS. Foundational supports are services outside the NDIS specifically designed for individuals with minimal or moderate functional impact due to their disability. Recognising the importance of these supports, State Governments agreed to contribute to building foundational supports on 6 December. The purpose is to alleviate pressure on the NDIS and manage the growth of the scheme's cost to 8% per annum.

Geared toward enhancing lives, these supports address gaps for those with lower support needs. Governments are encouraged to collaborate, improving the accessibility of mainstream services and investing in foundational supports. Two types are proposed: general support for everyone and targeted support for those with specific needs. This shift is designed to improve activities and programs currently funded through the Information, Linkages and Capacity Building grants program.

Psychosocial Disability and NDIS Support

Psychosocial disability arises when individuals face challenges in their lives due to mental health issues. The review found that the NDIS has not supported all people with psychosocial disability well.  It is proposed that new early intervention pathways, a coordinated approach with the mental health system for those with complex needs, priority development of foundational supports for people with psychosocial disability, and new standards for providers be developed to improve the supports available for people with psychosocial disability.

The introduction of specialised psychosocial navigators, with relevant training and support, will provide support, and coaching making the process more accessible and tailored to individual needs.

Housing

The report recommends fairer and more transparent planning decisions, particularly concerning housing.  In addition, the report calls for more innovative housing solutions providing more choice for people with disability.

Navigators: Streamlining Roles in the NDIS

The introduction of navigators, set to replace Local Area Coordinators (LACs) and Support Coordinators, aligns with the objective of putting people with disability at the centre of the scheme.  By ensuring a more straightforward and efficient process for accessing personalised services, navigators contribute to a positive and responsive experience for people with disabilities.

Proportional Registration Scheme

All service providers will need to be registered and Plan Managers will no longer act as financial intermediaries. Currently, there are approximately 160,000 unregistered NDIS providers alongside approximately 34,000 registered providers. The registration process will be proportional depending on the type of services provided, and align with the extent, scope and risk of the services provided.. 

New National Disability Supports Quality and Safeguards Commission

The proposed National Disability Supports Quality and Safeguards Commission will replace the existing NDIS Quality and Safeguards Commission.  It is envisaged that the new Commission will take a proactive approach to reports of fraud, overcharging, and unsafe services and follow-up participant complaints.

A new electronic payment system will allow the new Commission to identify fraudulent activity or overcharging therefore restoring trust in the system. 

Five Year Transition

The NDIS Review has made three recommendations regarding transitioning to what is being called NDIS Mark 2.  There will need to be extensive consultation with providers, and people with disability and an implementation road-map devised.  Accordingly, a five year transition period has been recommended.

Conclusion

The NDIS Review has highlighted the need for fairer access and planning decisions, more transparency, and the need to return to the original intent of the scheme whilst ensuring the scheme’s sustainability for generations to come.