Government plans 'standardised' assessment for NDIS

The government is taking the next steps to restore the National Disability Insurance Scheme (NDIS) to its original intent by delivering quality services, clarifying eligibility requirements, slow rapid cost increases and address fraud.

The changes are expected to reduce growth in NDIS payments by $37.8 billion over the next four years.

"The government will design a standardised, evidence-based assessment of functional capacity to determine scheme access," the budget read.

The government will provide $19.2 million over four years to establish a technical advisory group and to ensure representative organisations can facilitate community consultation on the reforms.

"NDIS market settings have resulted in provider viability challenges, variable quality and poor outcomes for some participants," the budget read.

To address this, the government will provide $49.4 million over four years to the National Disability Insurance Agency (NDIA) to ensure participants receive the best supports and to address provider viability challenges. NDIA is expected to introduce differentiated pricing for some support delivered by unregistered providers.

The government will also provide $200 million over three years to rebuild community organisations capabilities to host genuine participation activities.

Unscheduled reassessments, the government said, has been the major driver of spending growth in the program, an average reassessment resulting in a 20% increase in plan value.

To address this, the government will tighten criteria for plan reassessment and strengthen guidance on what is "reasonable and necessary supports".

"Budgets for social, civic and community participation and capacity building daily activities will be reset and New Framework Planning will deliver more equitable, consistent and sustainable participants plans from 1 April 2027," the budget read.

The government will invest $821.2 million over four years to expand the mandatory registration of providers, introduce a new enrolment system to increase oversight of payments, continue the Fraud Fusion Taskforce and strengthen the NDIA's investigative and enforcement capabilities.

"Fraud and non-compliance undermines the social licence of the NDIS and has a direct and devastating impact on the lives of participants and their families," the budget read.

Last month, Minister for health and ageing Mark Butler said NDIS is "one of Australia's great human rights achievements" and was created with goodwill, it has strayed too far away from the scheme's original intent.

He said the NDIS actuary has advised the government that spending has blown out by $13 billion over the next four years. The changes are expected to net savings of about $15 billion a year by the end of the decade; the scheme is currently estimated to cost $70 billion by 2030.

The NDIS will continue to grow each year and remain Australia's largest social program outside of the Age Pension, the government said.