NDIS review: scheme will continue to be a “fiscal sinkhole”

An expert from RMIT University says the review is disappointing and is effectively recommending more of the same when what is needed is wholescale reform. 

Dr David Hayward, Emeritus Professor, Public Policy and the Social Economy 

Topics: NDIS, healthcare, care economy, disability, social policy, aged care, childcare 

“The NDIS review is disappointing and confirms it will continue to be a fiscal sink hole. 

“Rather than offering solutions it is effectively recommending more of the same when what is needed is wholescale reform.  

“The review is full of ideas for reform involving new forms, new types of bureaucracy and bureaucrats with new names as well as more funding (for example on foundational supports).  

“It does not explain how all of this new bureaucracy and funding will lead to a system that is value for taxpayers' money rather than more revenue for private providers who can keep rorting the system.   

“Only one month ago, a US private equity firm doshed out over $200m for two bolted on NDIS planners, which were bought over the previous few years by an Australian private equity firm (a part owner of Melbourne and Sydney airports) for $150m.  

“The review will not stop this type of 'entrepreneurial' behaviour at taxpayers' expense. 

“Even with its proposed reforms – which will take five years to implement – the NDIS will grow from $42 billion this year, to over $60 billion by 2026.  

“Even if it then achieves its aims of 8% growth per year thereafter, by 2031 the NDIS will cost more than $93 billion and that excludes the cost of the new foundational supports to be paid for by the states.” 

Dr David Hayward’s research interests are the funding of social policy, with a focus on the state governments. He has published widely, most recently on the NDIS (Journal of Critical Social Policy), the social economy (published by VCOSS), and the impact of COVID government stimulus measures on poverty in Australia (for VCOSS).