Purpose of the bill
1.1
The purpose of the National Disability Insurance Scheme Savings Fund
Special Account Bill 2016 (the bill) is to assist the current and future
governments in ensuring funding commitments are met by providing financial protection
in the event of a funding shortfall.
1.2
The National Disability Insurance Scheme (NDIS) is one of the largest
social and economic policy reforms in Australia's history. The scheme supports
Australians with disability to lead a more independent life—empowering them to
make choices about the support they need by providing financial support
directly, not through service providers.[1]
1.3
Increasing social inclusion through the NDIS will also boost
productivity and create new economic opportunities. It is estimated that the
NDIS will be supporting 460 000 Australians with disability by 2019–20, at
which point the scheme will be fully rolled out and injecting growth into the
economy.[2]
1.4
Sustainable funding will be critical if the NDIS is to succeed and
flourish. The government has stated its firm commitment to ensuring funding is
both adequate and sustainable.[3]
NDIS Savings Fund Special Account
1.5
The bill would assist in meeting NDIS funding commitments by establishing
a new ongoing special account under section 5 for the purposes of the Public
Governance, Performance and Accountability Act 2013.[4]
The purpose of the special account is outlined in section 6:
- to assist the Commonwealth
to meet its funding obligations in relation to the National Disability
Insurance Scheme Act 2013;
- to make payments to the National
Disability Insurance Scheme Launch Transition Agency for the purposes of the
Agency;
- to reduce the balance of the
Account (and, therefore, the available appropriation for the Account) without
making a real or notional payment.[5]
1.6
Responsibility for management of the account would rest with the
Minister for Social Services.[6]
Section 8 would empower the Minister to delegate any of his powers to the
Secretary of the Department of Social Services or a Senior Executive Service
(SES) employee within the department.[7]
Credits to the account
1.7
Credits to the account would be committed for a period of ten years and made
from a number of Commonwealth sources, while debits would be made for the
specific purpose of funding Commonwealth shortfalls related to the NDIS.[8]
Sources of credit may include:
-
underspends and net savings from the NDIS and other portfolio
savings, as determined by the Minister for Social Services;
-
discretionary decisions by the Prime Minister or the Cabinet (for
example, to establish a starting balance at the special account’s
commencement); and
-
decisions by the Prime Minister or the Cabinet about identified
savings from other Commonwealth portfolios.[9]
1.8
The government states the bill would have a negligible financial impact
over the forward estimates. The special account would sit within the
Consolidated Revenue Fund and as such would not incur any Public Debt Interest
or management costs.[10]
Legislative scrutiny
1.9
The bill's explanatory memorandum states that the proposed legislation
is compatible with the human rights recognised or declared through
international instruments listed in subsection 3(1) of the Human Rights
(Parliamentary Scrutiny) Act 2011.[11]
The Parliamentary Joint Committee on Human Rights considered the bill in its 37th
report of the 44th Parliament and made no comment.[12]
1.10
The bill was also considered by the Senate Standing Committee for the
Scrutiny of Bills in its Alert Digest No.5 of 2016, and no comment was made.
Conduct of the inquiry
1.11
The bill was referred to the Senate Community Affairs Legislation
Committee on 15 September 2016, for inquiry and report by 7 November 2016.[13]
1.12
The committee received 15 submissions and held a public hearing in
Canberra on 14 October 2016. Submitters and witnesses are listed in Appendices
1 and 2 respectively.
1.13
The committee thanks the submitters and witnesses who contributed to
this inquiry.
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