‘Significant risk’: Disability ministers defy Butler’s NDIS overhaul

Disability ministers across the political divide have united to defy the Albanese government’s radical overhaul of the National Disability Insurance Scheme, warning draft laws risk “undermining the original intent” of Julia Gillard’s landmark reform.

In a joint submission, state and territory disability ministers said there was a “significant risk” that Australians with a disability will be funnelled into hospitals – and that some will languish in ward beds with no access to disability services whatsoever – if Health Minister Mark Butler proceeds with his proposed changes in their current form.

“The Commonwealth is moving very rapidly to reform the NDIS,” the ministers wrote.

“While elements of the proposed reforms have the potential to deliver improved outcomes, the bill in its current form risks undermining the original intent of the NDIS. The pace of reform – focused heavily on expenditure constraint, without a clearly defined broader ecosystem and with limited consultation – creates a significant risk of fragmented service delivery.”

The ministers, from all states and territories, went on to argue they were not in a position – and have made no agreement to deliver – like-for-like services to those eventually removed from the NDIS.

“Without a careful, coordinated approach that aligns these changes with broader improvements across the disability support system, there is a significant risk that people with disability will end up in hospitals or other settings that are inappropriate and unable to meet their needs, or have no access to services at all.

“Concerningly, disability ministers have not been meaningfully consulted in the development of these reforms, signalling a broader shift away from shared governance despite the scheme’s joint funding responsibilities. These concerns are shared across the disability sector.”

The submission – made to a Senate committee scrutinising Labor’s proposed amendments – was published on Thursday.

Labor holds power in NSW, Victoria, Western Australia and the ACT, while Queensland, Tasmania and the Northern Territory are governed by the Coalition.

Ministers have called for Labor’s draft laws to be amended to limit service gaps and the federal minister’s new, centralised powers.

“Disability ministers remain committed to working constructively with the Commonwealth to strengthen this legislation and secure the long-term integrity, sustainability and participant focus of the NDIS.”

Labor’s proposed changes would remove 240,000 people from the NDIS from January 2028, according to departmental modelling, as the government seeks to curb growth in the $56 billion scheme and limit access to people with the most severe disabilities.

The government is hoping to secure the Coalition’s support to pass the laws by the end of June, so it can deliver on its major budget savings measure.

The Senate inquiry, which kicked off on Monday, has already heard from distressed families worried their financial support will be axed under the proposed changes. Its findings are expected to be handed down next week.

Victoria’s Minister for Disability Lizzie Blandthorn said the submission highlighted “concerns that the legislation potentially goes further than where our agreements have reached”.
“The Victorian government pays $3 billion a year to the NDIS, and the Victorian government and all states and territories should remain co-governors of the scheme, and we should maintain a role in rule-making, particularly as it relates to things like access and eligibility,” she said on Thursday.

More to come

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