NDIS coverage adjusted
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The government has introduced stricter rules on NDIS funding and supports.
The Commonwealth has introduced significant changes to the National Disability Insurance Scheme (NDIS) through the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024.
The reforms, now in effect, are aimed at improving clarity and providing better support for NDIS participants.
A central part of the legislation is the introduction of a new definition of NDIS supports - setting out rules on what participants can and cannot spend their NDIS funding on.
NDIS Minister Bill Shorten says the reforms are part of plans for “returning the NDIS to its original intent and improving the Scheme experience for every participant”.
The NDIS has issued a new list detailing what will no longer be funded under the scheme.
The new NDIS rules specify 15 categories of goods and services that are no longer eligible for funding under the scheme.
These include day-to-day living expenses such as rent, mortgage payments, groceries, and utilities.
Lifestyle and recreational items, like concert tickets, holidays, gym memberships, and non-modified recreational equipment, are also excluded.
Non-evidence-based therapies, including crystal therapy, tarot readings, and energy healing, have been removed as well.
Furthermore, the NDIS will not cover costs related to alcohol, drugs, or sexual services.
The government says these lists were developed following extensive consultation, with over 7,000 submissions considered.
The changes come in response to reported misuse of the NDIS.
To help participants adjust, the government has implemented a 12-month transition period.
During this time, participants will not be penalised for mistakes that result in unapproved spending under $1,500, provided the errors are not repeated.
The government says that these changes are intended to guide participants in making informed decisions, rather than catching them out.
The reforms also include changes to how NDIS plans are structured.
From 3 October 2024, new plans will present a total budget amount, replacing the current line-by-line breakdown of supports.
This change is intended to give participants a clearer understanding of their funding and how long it needs to last. Initially, plans will run for 12 months, though this may be extended in the future.
The reforms come as the government seeks to rein in the growing costs of the NDIS, which currently stands at $42 billion annually.
The changes are expected to save $14 billion over the next four years, helping to ensure the scheme’s sustainability.
However, some advocates have expressed concerns that these changes do not address deeper issues within the NDIS.
National disability advocate River Night says that the reforms fall short of tackling the scheme's broader problems.
“We need urgent, concrete fixes for the cost blowouts and the mess that NDIS has become,” Night has told reporters.
The government says it is planning future changes including a needs-based assessment process for accessing the NDIS and new foundational supports managed by states and territories.
More information is accessible here.