The federal government aims to reduce the NDIS's annual growth from 10% to between 5% and 6%, according to multiple reports. The scheme is set to cost about $49 billion this financial year, making it more expensive than Medicare. NDIS costs are on track to reach $62 billion by 2028–29, and spending is now the Commonwealth's second-fastest growing expense at about $50 billion a year, behind only interest on government debt.
Widespread fraud has impacted the NDIS, with around $2 billion being wrongfully spent on items like luxury holidays, mortgages, and flashy cars. Organised crime groups have infiltrated the scheme by setting up dodgy provider businesses or posing as support coordinators. John Dardo, the NDIS head of fraud and integrity, stated that these are not genuine providers and should not be allowed near government schemes.
It's been widely reported that some Labor politicians are concerned that the NDIS might be losing its social licence.
Dr Nick Coatsworth warns that people have lost faith in the NDIS. According to Daily Mail - News, Nick Coatsworth described that the growing cost of the NDIS is taking resources from other essential services like health and aged care. Some Labor politicians are concerned that the NDIS might be losing its social licence. The NDIS benefits 800,000 people, while other major budget items like health, aged care, defence, and interest payments are for 26 million Australians. Specific measures to cut costs and reduce growth have not been detailed, and further information is expected from NDIS Minister Mark Butler in a speech on Wednesday.
But I would go further than that. I would say that many people have lost faith in the NDIS.
The generous funding of the NDIS is taking staff away from health and aged care, would be the most obvious reason.
But that's not the only reason why it's not working together. NDIS spending now is more than Medicare. It's more than aged care.
I do think that the Australian community looks at that and goes, "That doesn't seem like it's an appropriate distribution of funding."
I think that's where people are starting to get more broadly frustrated in the community.
Those personal comments I made about my mother and aged care did generate a heck of a lot of social media engagement. It struck a chord.
I think that's a good indicator of how people are viewing this, especially people in the health and aged care sectors.
The day after that went on social media, I had people coming up to me in the hospital saying, "Thanks for saying it. We see it, we feel afraid to say anything about it, because it's considered a sacred cow."
But, I think there's lots and lots of people out there in the community who are pretty concerned.