On 7 December 2023, the final report of the independent review into the National Disability Insurance Scheme (NDIS) (NDIS Review) was publicly released, following consideration by both the Disability Reform Ministers Council and National Cabinet (Final Report).

In the Final Report, the NDIS Review highlights four key themes for reform of the NDIS and sets out 26 Recommendations and 139 Supporting Actions to achieve these reforms. The Government will formally respond to the Final Report in 2024. It seems likely that the Government will consider the Final Report alongside its consideration of the final report from the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, which is currently being considered by the Disability Royal Commission Taskforce.

The NDIS Review background

As you would be aware, the NDIS Review, an independent review into the NDIS, was commissioned in October 2022, with a panel jointly led by co-chairs Professor Bruce Bonyhady AM and Ms Lisa Paul AO PSM (Panel) tasked with evaluating the design, operability and sustainability of the sector.

On Friday, 3 November 2023, the NDIS Review presented the Final Report to the Commonwealth, State and Territory Ministers at the Disability Reform Ministers Council meeting. It was decided at that meeting that the Report would first be considered by the National Cabinet (consisting of the Prime Minister, State Premieres and Territory First Ministers), before being publicly released.

On 6 December 2023, National Cabinet convened to discuss, amongst other things, the Report and the ongoing funding of disability services and the NDIS. During this meeting, the Commonwealth and State and Territory Governments pledged to take a collaborative approach to an overhaul of the provision of disability services, both within and outside the NDIS. This collective approach includes a significant increase in the financial contribution of the States and Territories to the funding of the NDIS, and a commitment to jointly design and fund a system of 'Foundational Supports' for people with disabilities, which will sit alongside the NDIS.

On 7 December 2023, the Report was publicly released. The Report highlights an overarching intention to 'place people with disability back at the centre of the NDIS' and sets out the NDIS Review’s 26 recommendations and 139 supporting actions which are designed to work together to act as a practical blueprint to facilitate this foundational change.

The NDIS Review has grouped its recommendations into four central themes for reform, which we summarise at a high level, as follows.

The four key themes for a reformed disability sector

Develop a unified system of support for people with disability

The Final Report proposes to create an 'ecosystem' around the NDIS, which maps an increased level of collaboration and connection between stakeholders across the spectrum of mainstream services, foundational supports and NDIS supports. To assist with this, the Final Report recommends a shift away from traditional support coordinators, and the creation of NDIS 'navigators,’ who will be tasked with assisting people with disability in finding, understanding and transitioning between services.

The Final Report recommends the creation of a more graduated system of support for people with disability, introducing 'foundational supports' as a system of disability-specific services which are available to both NDIS participants and people with disability who do not receive services through the NDIS. Jointly invested in by the Commonwealth and the States and Territories, the proposal seeks to secure the sustainability of the sector by ensuring that the NDIS is supported by a robust framework to assist people with disability who are not receiving services through the NDIS.

Markets and support systems that empower people with disability

The Final Report recommends the implementation of measures to improve participant access to safe, timely and quality supports by addressing issues around participant access to information, pricing transparency and workforce quality by sharpening the sector's regulatory and policy focus on broader market changes. The Recommendations in the Final Report include:

• A shift to electronic payments;
• Transitioning the management of pricing to the Independent Health and Aged Care Pricing Authority;
• Development of a new NDIS pricing and payments framework, including enabling price caps to reflect pricing in the market; and
• The design and trial of workforce attraction and retention initiatives, with continued development of micro-credentials and portable training and sick and carers leave schemes.

In the Final Report, the NDIS Review seeks to improve participant experience through a significant restructure of the safeguarding architecture across the entire disability support system. This includes the recommendation that a new Disability Supports Quality and Safeguarding Framework be implemented across all State and Territory jurisdictions.

Stewardship of the unified ecosystem

As part of creating the NDIS 'ecosystem', the Final Report recommends greater cost sharing and regulatory effort across all levels of Australian government. It is recommended that this be grounded in a 'Disability Intergovernmental Agreement' which will seek to clarify responsibilities around funding and governance across all levels of government.

It is recommended that this refreshed approach will employ greater innovation, including the collection and use of data and the formation of a new 'Disability Research and Evaluation Fund' to identify areas for continual learning, monitor participant experience and inform pricing decisions.

A five-year transition

The Final Report proposes the development of a 'five year implementation roadmap', including legislative reform, comprehensive risk assessments and stakeholder engagement to safeguard sustainability and reinforce the collaborative foundation of the new sector. While the Report highlights that certain actions may need to be prioritised, with some legislative change in the first half of 2024 recommended, the Final Report endorses a staged rollout to allow for a smoother transition of current participants and providers, with opportunity for consultation on design, community engagement and testing. Notably, the Final Report recommends the establishment of an 'NDIS Review Implementation Advisory Committee', which will liaise with stakeholders and provide advice to the Government on implementation of the roadmap.

The Commonwealth Government has said that it will provide a fulsome response to the Final Report in 2024. Until then, we cannot say with certainty which of the recommendations and supporting actions will be accepted by the Commonwealth and implemented. We can expect that 2024 will be a significant year to understand the future roadmap for reform of the disability sector, as the Commonwealth Government considers and responds to both the Final Report and the final report of the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability. It is also possible that we will start to see some legislative change commencing throughout 2024 and significant opportunities for stakeholder engagement. We encourage our clients to stay engaged with the reform journey, as input from providers will be vital in ensuring that the new legislative landscape is tailored to the experience and needs of the sector.

We will continue providing updates as the roadmap to the new sector progresses. If you would like to discuss this update, or we are able to assist in any way, please do not hesitate to get in touch.