Vision Australia continues to strongly support the National Disability Insurance Scheme and the benefits it will bring to people with a disability, their families and carers.
The peak body for disability service providers, National Disability Services, has today issued a media release about the National Disability Insurance Scheme.
NDIS cost blow-out claims are misleading
A new report from the Centre for Independent Studies (CIS) claims that the cost of the National Disability Insurance Scheme (NDIS) will blow out by billions and that the NDIS will be a giant new ‘Leviathan’. The report is seriously misleading. It reaches its conclusion by projecting the normal effect of price inflation, wage increases and population growth over several years and labelling the effect a cost blow-out.
To further magnify the cost increase, the report relies on the assumption that eligibility for the NDIS will be aligned with future increases in the age pension age. But current planning for the Scheme aligns age eligibility to the National Health Agreement (under 65 years), not the age pension age.
Dr Ken Baker, Chief Executive of National Disability Services said, “Economically literate policy-makers who read beyond the headlines will realise that the report’s alarmist claims lack substance.
“It’s hardly a revelation that the cost of the NDIS will rise over time; the cost of virtually everything rises over time with inflation and wage growth. The report conveniently ignores the fact that Australia’s economy and tax revenue will also grow over time.
“The CIS report ignores the economic benefits of the NDIS. The Productivity Commission concluded that the benefits of the NDIS would outweigh the costs. The economic benefits include: increased employment of people with disability and carers, less pressure on other service systems and a more efficient disability service system.
“The report fails to look at the cost to government of not taking action to fix the crisis in our disability system. PwC research has found that within 15 years the current funding model for Australia’s disability system will exceed the cost of funding the NDIS.
“The productivity commission report that recommended the NDIS conducted an 18-month inquiry drawing on significant economic expertise and resources. I am confident that the NDIS will deliver a better life to people with disability, and do so while delivering long term economic benefits."