‘Blowout ahead’, warns NDIS HQ

GEELONG-headquartered National Disability Insurance Agency (NDIA) has warned the Federal Government of potential cost blowouts for the $22 billion scheme.
The ABC reported it had obtained an NDIA document saying the National Disability Insurance Scheme remained at risk of cost overruns.
State Government plans to roll out the scheme across Victoria over the next three years after a “successful” Barwon region trial.
The Independent reported in September that Premier Daniel Andrews had signed a $5.1 billion bilateral agreement with the Commonwealth to roll out the scheme to an estimated 105,000 Victorians.
NDIA said higher rates of autism, workforce and supply shortages, and state cost-shifting could increase costs.
“Clearly risks remain, especially for the Commonwealth Government, which is on risk for cost overruns,” the NDIA document said.
NDIS trials are also under way in the ACT, New South Wales, Tasmania and South Australia.
The agency said $952.8 million had been committed to fund individual plans at an average annual cost of more than $38,423.
The figure for individual plans was $3454 higher than the expected average cost when the scheme was designed.
The NDIA said moving to a full roll-out would happen quickly but its full range of costs would emerge over time.
The trials were still on time and budget and reporting a high level of satisfaction among participants, the NDIA said.
Almost 19,817 people were eligible for the scheme at the start of the financial year, with more than 17,000 plans approved.