Australia’s National Disability Insurance Scheme Expected To Surpass Cost Of Medicare

Budget estimates are expected to show NDIS costs  rising to more than $30 billion in 2024-25.

CANBERRA, Australia — Spending on Australia’s National Disability Insurance Scheme is expected to overtake the cost of Medicare within the next three years.

Budget estimates are expected to show the National Disability Insurance Scheme (NDIS) costing more than AU$30 billion ($23 billion) in 2024-25, almost AU$10 billion ($7 billion) more than previous estimates.

The National Disability Insurance Scheme (NDIS) helps people with disabilities of permanent or significant nature that affects their capability to participate in daily activities.

This scheme was established under The National Disability Insurance Scheme Act 2013 (NDIS Act) which supports the independence, social and economic participation of people with disabilities; enables people to exercise their choice, and provides planning and funds for their well-being.

Treasurer Josh Frydenberg is seen reflected in a water feature as he arrives to declare the federal budget in Parliament House, Canberra on May 11, 2021. (Mick Tsikas/AAP Image)

The federal budget for May 11’s night will contain additional funding for the disability support scheme.

But the government is looking at ways to make the National Disability Insurance Scheme (NDIS) more affordable.

“We need to ensure that it continues to remain sustainable,” Treasurer Josh Frydenberg said.

“But under the coalition, we are deeply committed to the National Disability Insurance Scheme (NDIS) and we’ll always ensure that it is fully funded.”

The government is set firm on introducing independent assessments for all National Disability Insurance Scheme (NDIS) participants – despite widespread opposition – in order to cut costs.

Finance Minister Simon Birmingham said the program was growing faster than ever expected, with record numbers of participants joining the National Disability Insurance Scheme (NDIS).

Finance Minister Simon Birmingham said the program was growing faster than ever expected, with record numbers of participants joining the National Disability Insurance Scheme (NDIS). (Mick Tsikas/AAP Image)

“That’s why as a government we are honoring our commitment to fully fund it, managing the program for those record participants,” Senator Birmingham said.

“But of course, we will manage it as carefully as possible to make sure it’s sustainable for the future, too.”

The National Disability Insurance Scheme (NDIS) supports 450,000 people but that is expected to grow to 530,000 within a few years.

The average payment per participant has also grown significantly, with the Commonwealth’s share of the costs on an upward trajectory.

Within a span of three years (2017 – 2020), the payment per National Disability Insurance Scheme (NDIS) participant rose by almost 48 percent.

There is a population of more than 50 percent who are getting support for the first time. This includes almost 70,000 children who are six years old or below, and nearly 11,000 people are getting support from Early childhood intervention gateway.

The utilization by participants is now over 70 percent, and it’s heading upwards.

At this rate, the Commonwealth share of the National Disability Insurance Scheme (NDIS) cost by 2024-25 is expected to jump from 51 percent to 59 percent.

(Edited by Vaibhav Vishwanath Pawar and Nikita Nikhil)



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