Chapter 2Updates to the NDIS and the work of other bodies
2.1This chapter provides an overview of recent and proposed changes to the NDIS, as announced by the Australian Government and the National Disability Insurance Agency (NDIA) since the committee tabled its last General Issues report in February 2024.
2.2This chapter also briefly examines the work of other bodies, including the Disability Reform Ministerial Council and the Participant Reference Group.
Major changes to the NDIS announced since February 2024
2.3Announcements from the government and the NDIA about changes to the NDIS in the period February 2024 to June 2024 included the following:
establishment of an NDIS Provider and Worker Registration Taskforce to provide advice on the design and implementation of a new graduated risk‑proportionate regulatory model;
initial funding of $83.9 million towards the Crack Down on Fraud program;
appointment of Mr Michael Phelan APM as interim acting Commissioner of the National Disability Insurance Scheme Quality and Safeguards Commission (NDIS QSC) for a three-month term;
a refreshed Participant Employment Strategy 2024–2026 to increase the efficiency and effectiveness of NDIS employment supports;
public release of the fourth edition of the School Leaver Provider Quarterly Report, examining school leaver employment support for 6,553participants, their progress, outcomes, and achievements;
publication of the NDIS Cultural and Linguistic Diversity (CALD) Strategy and Action Plan 2024–2028, including 6 key priorities and 28 actions to support CALD communities to better access and use the NDIS and improve NDIS plans to reflect the needs of CALD participants;
additional funding of $227.6 million over five years for a new Specialist Disability Employment Program;
commitment of $23.3 million over four years to establish a Disability Employment Centre of Excellence;
commitment of $45.5 million over four years (and $13.3 million per year ongoing) from 2024–25 to establish an NDIS Evidence Advisory Committee, as recommended by the Independent NDIS Review;
joint correspondence from the NDIA and the NDIS Quality and Safeguards Commission to all plan managers and support coordinators to remind them of their obligations regarding record keeping, conflicts of interest, misuse of NDIS funds and legislative compliance;
creation of a new online tip-off form to streamline the reporting of suspected fraud and non-compliance;
investment of $140.3 million in community organisations through the Information, Linkages and Capacity Building (ILC) program;
increased funding of up to $10.7 million for 27 Disability Representative and Carer Organisations to co-design NDIS reforms;
opening a grant round for providers to participate in co-design of blended payments with the following focus areas:
- Grant package 1: Providers of employment support for school leavers
- Grant package 2: Providers of supported independent living (SIL) and those supporting younger people in residential aged care (YPIRAC); and
investment of $40 million over two years in a one-off Peer Support and Capacity Building grant program for smaller, community-based, disability led peer support and advocacy programs.
2.4Since 30 June 2024, further developments have taken place, including:
establishment of a new Children's Expert Advisory Group to work with the NDIA to co-design improvements to the NDIS for children and their families;
release of the Australian Government's initial response to the Final Report of the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability;
public consultation on draft lists of what will and will not constitute NDIS Supports, to provide greater clarity to participants and enable transition to more flexible budgets;
appointment of Ms Louise Glanville as the new Commissioner of the NDIS QSC, taking over from Acting Commissioner Mike Phelan APM;
progressing a new provider registration system that includes mandatory registration of support coordinators, platform providers, and providers of supported independent living; and
establishment of an Independent Pricing Committee to review NDIS pricing approaches and recommend changes to improve the quality and sustainability of the disability provider market.
Changes to the NDIS Act and NDIS Rules
National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024
2.5The National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024 (the Amendment Act) passed the Parliament on 22August2024.
2.6The Amendment Act provided a framework for rules and future reforms to restore the original intent, integrity, consistency and transparency of the NDIS.
2.7The Amendment Act made various amendments to the NDIS Act, including to:
introduce a new definition of 'NDIS supports';
clarify entry pathways into the Scheme;
expand NDIS rules relating to access requirements;
provide for new framework plans;
create a new reasonable and necessary budget framework for the preparation of NDIS participants' plans;
provide for a needs assessment process and the method for calculating the total amounts for participants' 'flexible funding' and 'stated supports', to be specified in NDIS rules and legislative instruments;
clarify the requirement that an NDIS participant who receives NDIS amounts for NDIS supports may only spend that money in accordance with their plan;
enable the NDIA to change the plan management type, as well as imposing shorter funding periods; and
insert quality and safeguard amendments to enable the imposition of conditions on approval of quality auditors.
2.8Amendments made in the House of Representatives gave additional functions to the Amendment Act, including to:
refine the new definition of 'NDIS support';
clarify the circumstances in which a replacement assessment report can be arranged;
clarify new provisions relating to funding component amounts and total funding amounts,
prescribe certain circumstances in which the CEO may pay above a total funding amount for a plan, and circumstances in which a participant's reasonable and necessary budget can be varied, rather than leaving this detail to NDIS rules;
place limitations on proposed new information gathering powers;
clarify that in making new legislative instruments, the Minister must have regard to the principle that people with disability are to be included in a co‑design capacity;
require the CEO to provide a needs assessment report to a participant; and
clarify that a decision maker upon internal and external review can arrange for a replacement needs assessment; and
to provide for a five-year review of the amendments made by the AmendmentAct.
2.9Further amendments in the Senate provided for additional changes including:
repealing and substituting the definition of 'host jurisdiction Minister';
clarifying the information gathering powers of the NDIA CEO;
clarifying the scope of the new needs assessment framework;
prescribing that a consultation statement must be included with legislative instruments made under the NDIS Act;
requiring NDIS plans to be managed by the NDIA where participants have been convicted of particular offences;
prescribing that the NDIA publish reports within 45 days after the end of each reporting period; and
requiring that the NDIA publish monthly statistics no later than the 15th day of the following month.
2.10The Senate Community Affairs Legislation Committee considered the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No.1) Bill 2024 twice, tabling reports on 20June2024 and 9 August 2024.
2.11The Amendment Act received Royal Assent and became law on 5September2024.
Changes to the NDIS Rules
2.12The committee notes that the Amendment Act provides for areas of NDIS policy to be established through the mechanisms of Rules and instruments, at the discretion of the Minister. At the time of writing, no Rules or instruments have been made. The committee acknowledges several ongoing consultations to inform this process.
Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability – Progress Update
2.13On 13 March 2024, the government released a Progress Update on its consideration of the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability (Royal Commission) final report.
2.14The Royal Commission handed down its final report in September 2023, drawing on over 7900 submissions, 1785 private sessions, 32public hearings, and 12 policy workshops.
2.15The final report made 222 recommendations for 'preventing and responding to violence, abuse, neglect and exploitation and for building a more inclusive society in which the rights of people with disability are respected, protected and fulfilled and respect for their inherent dignity and individual autonomy ensured'.
2.16In its Progress Update, the government outlined some of the key actions that it was taking to address issues raised during the Royal Commission's inquiry, including:
establishment of a Commonwealth Disability Royal Commission Taskforce;
a wide range of consultation and engagement processes; and
strengthening outcomes under Australia's Disability Strategy (ADS).
Commonwealth Disability Royal Commission Taskforce
2.17The Progress Update discussed the establishment of a Commonwealth Disability Royal Commission Taskforce (Taskforce) within the Department of Social Services to support the government's consideration of, and response to, the Final Report.
2.18The Taskforce's stated purpose is to:
support coordinated consideration of the Disability Royal Commission's Final Report across Commonwealth departments and agencies;
engage and consult with people with disability, their families, carers, representative organisations, service providers, unions, employers and the broader community to inform government decision-making on reform; and
work with state and territory officials to consider recommendations of joint Commonwealth, state and territory responsibility.
Department of Social Services consultations
Public consultation on the Disability Royal Commission
2.19The government undertook consultation with people with disability, their families, carers, representative organisations, service providers, unions and the broader community to inform decision-making on its response to the Royal Commission's final report.
2.20As part of the consultation process, the Department of Social Services conducted an online questionnaire and submission process, encouraging responses from people with disability, as well as family members, carers, supporters, advocates, and disability representative organisations. The consultation period ran from 28November 2023 to 19 January 2024.
2.21The Department of Social Services noted four key themes that emerged from this consultation process:
support for stronger legal protections of the human rights of people with disability, to reflect the centrality of the United Nations Convention on the Rights of Persons with Disability (CRPD);
support for the Royal Commission's vision for an inclusive Australia;
the importance of centring the voices and experiences of people with disability, including through governments taking a genuine approach to co‑design and disability leadership throughout every level and stage of reform; and
diverging and contested views about the future of special or segregated settings for people with disability across education, employment and housing.
NDIS Supports
2.22On 4 August 2024, the Department of Social Services launched a public consultation on draft lists of NDIS Supports, as defined by the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024. Lists of what will and will not constitute NDIS supports are proposed to help participants and providers understand what funds can be used for. This is intended to enable more flexible planning and new budget setting arrangements as recommended by the NDIS Review. The draft lists are to become part of a transitional rule about NDIS Supports, to remain in place until the Commonwealth, states and territories formally agree on a new rule to replace it. Consultation on the draft lists closed on 25 August 2024.
2.23The final version of the NDIS Supports lists are published on the NDIS website.
Foundational Supports
2.24On 2 September 2024, the government began public consultation on Foundational Supports, which are additional disability supports available in the community to help people with disability and their families and carers, outside the NDIS. The consultation includes six ticketed online forums, with in person events to follow. The consultation period is to end on 30 November 2024.
New specialist disability employment program
2.25On 17 June 2024, the government launched consultation on a new specialist disability employment program, to replace the current Disability Employment Services (DES) program, as announced in the 2024–25 Budget. The new program is to focus on sustainable employment and provider quality. Consultation closed on 7 October 2024.
2.26On 4 October 2024, the New Specialist Disability Employment Program Request for Tender (RFT) was released on AusTender, with a closing date of 30 October 2024. The new disability employment program is to commence on 1 July 2025.
Review of Australia's Disability Strategy
2.27On 8 August 2024, the government initiated public consultation as part of its Review of Australia's Disability Strategy 2021–2031 (ADS). As part of the consultation, the Department of Social Services published a discussion paper, including several draft recommendations. The consultation ended on 6 September 2024. Feedback received is to inform an updated ADS for release in December 2024.
Australian Government Response
2.28On 31 July 2024, the Australian Government released its initial response to the Disability Royal Commission. The government indicated that, of the Royal Commission's 222 recommendations:
84 fell solely to the Commonwealth;
85 were a joint responsibility between the Commonwealth, states and territories;
50 were entirely for the states and territories; and
3 were for the Commonwealth and non-government organisations.
2.29Of the 172 recommendations for which the Australian Government had a primary or shared responsibility:
13 were accepted;
117 were accepted in principle;
36 were for further consideration; and
6 were noted.
2.30As part of its initial response, the government announced investments in four key areas that reflected the priorities of people with disability, including:
Rights and Anti-Discrimination
$6.9 million to review and modernise the Disability Discrimination Act;
$39.7 million to establish a new disability advocacy program; and
$12.1 million to amend the Migration Health Requirement to be fairer and more inclusive for children with disability.
Safety
$15.6 million to unify national disability quality and safeguarding arrangements;
$4.4 million for consistent approaches to community visitor schemes as a safeguarding mechanism;
$2.6 million for the continued delivery of the National Disability Abuse and Neglect Hotline and the Complaints Resolution and Referral Service;
$2 million towards improving the safety of women and girls with disability; and
$1.2 million to develop targets to reduce and eliminate restrictive practices.
Inclusion and Access
$12.3 million to improve national approaches to accessible information and communications, including Auslan;
$3.7 million to continue the Primary Care Enhancement Program for People with Intellectual Disability; and
$19.6 million to support grassroots efforts to improve community attitudes around disability.
Employment
$23.3 million to establish a Disability Employment Centre of Excellence; and
$227.6 million to implement a new specialist disability employment program.
Joint Government Response
2.31On behalf of the Australian Government and all state and territory governments, Disability Ministers released the Joint Australian, State and Territory Response to the Disability Royal Commission on 31 July 2024. All governments accepted or accepted in principle the majority of the 85recommendations with shared responsibility.
The work of other bodies
NDIS Review
2.32The NDIS Review released its final report in December 2023. The committee understands that the full government response to the Review is to be released in late 2024.
Disability Reform Ministerial Council
2.33Disability Reform Ministerial Council (DRMC) meetings are held several times throughout the year, to provide a forum for all Commonwealth, state and territory Ministers responsible for disability policy to discuss national reforms to disability policy through the National Disability Strategy and the NDIS.
2.34The DRMC held its first meeting of 2024 on 9 February in Canberra. Key matters discussed at this meeting included:
ensuring the sustainability of the NDIS through an annual growth target of no more than 8 per cent by 1 July 2026;
development and implementation of Foundational Supports outside the NDIS, across all jurisdictions;
continued deep engagement with the disability community;
strengthening the design and impact of new Targeted Action Plans under Australia's Disability Strategy 2021–2031 and in response to the Disability Royal Commission's recommendations;
an approach for conducting a review of Australia's Disability Strategy, with terms of reference for the review to be settled by the end of February and updates to the Strategy to be considered by DRMC in the last quarter of 2024; and
endorsement of an updated NDIA Risk Management Strategy.
2.35On 28 June, the DRMC met again in Canberra and discussed issues including:
ensuring coordination of government efforts across the entire disability service system;
development of a new specialist disability employment program to improve service quality and employment outcomes;
progress of the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No 1) Bill 2024, and a commitment for engagement and co-design on the delegated legislation that would follow the commencement of the Amendment Act;
the importance of bringing together implementation of the different elements of disability reforms, across the NDIS, Foundational Supports and Disability Royal Commission, with a high-level roadmap to be shared with disability representative organisations;
an approach to collaboration on a joint response to the NDIS Review;
community consultation on foundational supports; and
the National Disability Data Asset (NDDA) Charter and NDDA Council Terms of Reference, to support community co-governance of the NDDA.
2.36A further meeting was held on 30 August, which will be considered in the next Annual Report.
Participant Reference Group
2.37The Participant Reference Group (PRG) consists of 23 participant and carer representatives across Australia. These individuals have been nominated from groups including the Disability Representative and Carer Organisations (DRCO), the Independent Advisory Council (IAC) and the Participant First Engagement Initiative.
2.38At a meeting on 10 April, the PRG focused on the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024. Members discussed significant concerns with the bill, including:
that people with disability were not involved in the drafting of the bill;
procedural fairness;
delegation of the powers of the NDIS Quality and Safeguards Commission;
moving from the use of the term 'disability' towards 'impairments';
the government's commitment to co-design and how the NDIS would make sure that rules made under the NDIS would be co-designed with people with disability;
fear and confusion about reassessment of eligibility and whether the new process was an implementation of the functional assessments process that was rejected by people with disability during the previous Parliament; and
confusion about how a support needs assessment tool would be used, and how it would affect funding for individual participants.
2.39On 29 April, the PRG heard from the NDIA's Co-design Branch about the agency's draft approach to future implementation of co-design principle. The PRG heard about the six co-design groups currently working in the NDIA, with the next phase of co-design to support implementation of some NDIS Review recommendations. The NDIA discussed its expectations that the number of areas of co-design would increase in response to NDIS legislative changes and NDIS Review recommendations.
2.40At the meeting, PRG members raised concerns about co-design processes, including:
how the NDIA will ensure that co-design principles are followed;
how participant safety can be assured;
maintaining an equal balance of power between participants and NDIA staff during co-design processes;
meeting individual accessibility and communication needs;
taking the time required to co-design effectively;
including as many participant voices as possible, including those from rural and remote communities; and
helping people advocate for themselves and others.
2.41On 8 May, the PRG's meeting focused on improving the Partners in the community program (Partners program). NDIA staff spoke about the two components of the current program, Local area coordinators and Early childhood partners. The PRG made several suggestions for immediate improvement to the Partners program, including:
the need for partners to have some specialisation in disability, or lived experience;
building trust through ongoing working relationships with the same person;
modifying or removing KPIs that make it difficult for partners to spend enough time with each participant and lead to stress, burnout and staff turnover;
timely and accurate communications in the format the participant has requested;
participants to receive a draft of their NDIS plan so they can discuss any issues before it is implemented, reducing the need for plan reviews;
partners who speak the same language as culturally and linguistically diverse (CALD) participants and have knowledge about CALD specific organisations and services; and
creating a confidential phone service for partner staff to lodge a complaint if their organisation is doing the wrong thing or asking their staff to do the wrong thing.
2.42On 12 June, the PRG received an update from the Service Guidance Branch. The PRG was told that the design of a new NDIS plan and plan approval letter was informed by examples from an earlier co-design workshop and consultation process. The new plan and plan approval letter was being built in the new PACE customer relationship management system, to be ready later in 2024. The PRG also heard from the Office of the Participant Advocate, which anticipates working closely with the Co-design Branch to ensure that participants have a voice in upcoming changes to the NDIA.
2.43As this chapter has outlined, there have been significant and wide-ranging changes and policy developments with regard to the NDIS in 2024. These initiatives have been complemented and informed by the work of other bodies, including the Disability Reform Ministerial Council and the Participant Reference Group. The next chapter focuses on the work of the committee in 2024.