Another Hurdle for the NDIS
It seems a bit odd speaking of yet more potential woes surrounding the National Disability Insurance Scheme on an otherwise very happy day for people with a disability around the world with the London 2012 Paralympics beginning. But unfortunately that has to be done. A new report has placed serious doubts on the price tag for a fully-funded NDIS . Therefore the future of the scheme is put into question even more before the launch sites in New South Wales, Victoria, Tasmania, South Australia and the Australian Capital Territory have commenced operation. This would no doubt be a scary prospect for those with severe and permanent disabilities around Australia, their carers and families.
A report by the Australian Government Actuary shows that the initial figures put out by the Productivity Commission in its report into the establishment of a National Disability Insurance Scheme could well be wrong to the tune of billions of dollars. The Commission said in its report that a fully-funded NDIS in the first year of operation would cost upwards of $13 billion. The report by the actuary however, shows that the eventual cost in the first full year of the Medicare-like policy would be closer to $22 billion, that’s almost $9 billion more than the Productivity Commission determined the cost to be in their report to the Gillard Government.
That’s a horrifying extra hurdle that needs to be overcome in providing much needed, essential and coordinated services to a cohort that is all too often overlooked when calling for extra funds just to be able to do simple things like getting out of bed of a morning and out of the house to engage in the community.
Such a scary proposition requires a rethink of how to proceed with funding such an important initiative. Previously, the state governments, barring a few exceptions, with different degrees of vigour, have asserted that the commonwealth must do as the Productivity Commission recommended in their recommendations. That advice was that the federal government, to avoid a COAG bunfight with the states, be the sole-funder of the insurance scheme.
Particularly the Liberal state governments, but also the Liberal and National Party Coalition in Canberra toed the Productivity Commission line from very early on, saying that the feds have to be the sole contributors to the NDIS. Back when the figure was nearly $14 billion dollars, this wasn’t such a silly thing to pursue the government on, given what the Productivity Commission thought possible. But it would still have been a difficult proposition given that the initial figure was not exactly small change.
Now two Liberal states agreed, after the conclusion of a Council of Australian Governments meeting, with much pressure applied by federal Labor, the press and lobby groups, to contribute some not insignificant funds in order to host launch sites in their jurisdictions.
The state and territory Labor Governments of South Australia, Tasmania and the ACT got onboard with the discussions from the very beginning, willing to put money toward such an important and necessary idea. They were rewarded at COAG, being named the hosts of the first three sites to see the National Disability Insurance Scheme in working order.
Then there was Queensland, the only state or territory, other than the Northern Territory, which was nearing an election and Western Australia, trialing a similar policy of their own, that wasn’t willing to stump up a single cent in order to be chosen to host another commencement location for the scheme.
Regardless of the recommendations, it could have easily been said back at the time of the COAG meeting of the Premiers, that the policy really needed agreement and an ability for all the states and territories and the commonwealth to work together on achieving this policy outcome.
Now, with the newly inflated figure being bandied about, it is absolutely essential that all the states and territories, in conjunction with the commonwealth government, are willing to put all the money needed toward a properly funded disability scheme.
All states and territories, as well as the national government must now work towards agreeing to put all of the money they currently contribute to disability services into the funding pool.
Then, the state Premiers and Chief Ministers along with the federal government must discuss and agree to contribute their fair share of the extra funds necessary to realise the benefits of an NDIS.
There is the possibility of instituting a levy to make up any short fall, but this should only be considered if both levels of government cannot agree to contribute all the funds necessary for the full operation of the proposed disability services framework.
It’s also politically risky for the incumbent government, with people generally not liking new taxes. But if all or at least a majority of states and territories can agree that a levy is a good way ahead, then that could go some way to ameliorating the concerns of the public in having to pay a new tax.
Particularly in light of the very contradictory statements coming from the federal Opposition over the NDIS, it is important that their suggestion of a multi-party committee to work together advancing the insurance scheme is instituted. This would give the Coalition no wriggle room to back away from a commitment to funding their part of the National Disability Insurance Scheme if, as many believe likely, they take the government benches in 2013.
Were such a joint committee to be established, it would also take the politics out of the equation which has infested debate over the scheme and ramped up in recent months. We all know who ‘owns’ this policy prescription, but it is so important that it should not be seen as something that the government and the opposition cannot work together on to achieve.
There are murky days, weeks, months and years ahead for the National Disability Insurance Scheme. The future of the not yet rolled out scheme looks tenuous. What we need now, more than ever, is for our politicians to shine, to rise above politics or the very worst fears of people with a disability, so often let down by government, will again be realised.
Posted on August 30, 2012, in Disability Issues, Federal Politics and tagged Australian Government, Australian Government Actuary, Australian Government Actuary report, Australian politics, COAG, commonwealth government, Council of Australian Governments, disability, disability reform, federal government, funding, levy, multi-party committee, National Disability Insurance Scheme, NDIS, politics, state government, tax. Bookmark the permalink. Leave a comment.