The Commonwealth Government has announced a Review of the NDIS (the Review), in response to financial forecast of significant operating costs for the NDIS. The Government is referring to the review as 'NDIS 2.0: A New Hope'. The Review was originally planned for 2023, however it has now been brought forward a year, with a report expected to be released by October 2023.

More information on the NDIS Review can be found on its website.

Refer to the Terms of Reference.

The NDIS Review will be split into the following two parts.

Part 1: Design, operations and sustainability of the NDIS

Part 1 of the NDIS Review will be led by Professor Bruce Bonyhady AM and will consider the 'design, operating and sustainability' of the NDIS.

In summary, Part 1 of the NDIS Review will make findings and report on:

1. the participant experience and cost of engaging with the NDIS, with a view to 'putting people with disability back at the centre of the NDIS';
2. the effectiveness and sustainability of the NDIS, including the ability of NDIS participants to achieve 'meaningful employment', lifetime outcomes and 'broader social and economic benefits' through the provision of reasonable and necessary supports;
3. ways to ensure the delivery of value and outcomes from the NDIS, both for NDIS participants and the Government;
4. governance arrangements within the NDIS, including the manner in which arrangements support the effective operation of the NDIS, and the roles and interactions between the National Disability Insurance Agency, NDIS Quality and Safeguards Commission and the Commonwealth Department of Social Services;
5. efficiencies within the NDIS and the way the NDIS interacts with other policies and systems, including 'mainstream' services delivered by all levels of government and the community sector;
6. whether there has been any 'service and financial impact', whether positive or negative on other service systems and programs and the adequacy of support for people with disability through systems and programs that sit outside the NDIS; and
7. the financial risks and drivers that cause cost pressures and the most appropriate levers to manage those risks and costs pressures.

Part 2: Building a more responsive and supportive market and workforce

Part 2 of the NDIS Review will be led by Ms Lisa Paul AO and will 'analyse ways to build a more responsive, supportive and sustainable market and workforce'.

In summary, Part 2 of the NDIS Review will make findings and recommendations on reforms to:

1. 'foster and steward' an 'innovative, effective and sustainable' market where providers can 'invest, grow and improve' outcomes for NDIS participants;
2. improve the pricing and payment systems in the NDIS to improve outcomes for participants while improving productivity, supporting workforce development and sending the market and system are sustainable;
3. improve access to supports in 'thin markets' including 'cultural and regional, remote and very remote communities and service categories' to ensure participants with complex needs have continuity of support in the event of a provider withdrawing from those markets;
4. 'attract, build and retain' a capable workforce, including employment and training models to improve participant experience, worker attraction and retention and career pathways;
5. ensure adequate supply of accommodation and supports which are cost effect and appropriate, including SDA, medium-term accommodation, SIL and individualised living options;
6. improve consumer information and dissemination on supports and services and the roles of intermediaries to assist participants and carers to find value for money supports to meet the participant's needs and delivery outcomes;
7. ensure the effectiveness of the Quality and Safeguards Framework to ensure quality, address conflicts of interest and provide appropriate protection for participants;
8. improve the efficiency and effectiveness of price setting and regulatory functions (market oversight, monitoring and enforcement), including interaction with other relevant Commonwealth, state and territory regulatory systems; and
9. improve performance monitoring, compliance, reporting and responses to breaches, including the detection of fraud.

Across both Part 1 and Part 2 of the NDIS Review, the Independent Review Panel will consider how the NDIS interacts with other services across the broader care and support sector. This will include the aged care sector, veteran's care through the Department of Veteran's Affairs and the primary health care sector as well as broader community based activities. The Review will identify how programs can achieve better outcomes for people with disability through improved integration.

As part of its activities, the Review will consult participants, providers and the community as well as co-design directly with providers, their workers, participants and their families to improve the responsiveness and capability of the NDIS.

The success of the Review will likely rely on the support and engagement of the disability sector, to ensure that any reform recommendations are effective and fit for purpose. Acknowledging the fatigue in the sector from the COVID-19 pandemic and the ongoing reform activities of the Royal Commission into Violence, Abuse, Neglect and Exploitation of people with Disability (Royal Commission), we encourage NDIS providers to engage with the review, in order to ensure the best outcome possible for the sector.

We note that the NDIS Review's report is due soon after the Royal Commission's Final Report, which is due to the Australian Government on or before 29 September 2023. This means that the end of 2023 is likely to be a particularly busy time for NDIS providers, given there is likely to be significant discussion and activity around reform at this time.