Chapter 1 - Introduction

Chapter 1Introduction

1.1The Joint Standing Committee on the National Disability Insurance Scheme (thecommittee) was originally established on 2 December 2013 during the 44thParliament, following the passage of resolutions in the Senate and the Houseof Representatives. The committee, composed of six members and six senators, was tasked with reviewing the implementation, administration and expenditure of the National Disability Insurance Scheme (NDIS, or the scheme), and presenting an annual report to the Parliament after 30 June each year on its activities.[1] The original establishment order focused on implementation of the scheme.

1.2The committee ceases to exist when Parliament is dissolved. However, it was reestablished in the 45th, 46th and, most recently, in the 47th Parliament to continue its work. The current committee comprises five members and five senators, and is tasked with reviewing:

(a)the implementation, performance and governance of the National Disability Insurance Scheme (NDIS);

(b)the administration and expenditure of the NDIS; and

(c)such other matters in relation to the NDIS as may be referred to it by either House of the Parliament.[2]

1.3After 30 June each year the committee is also required to report to the Parliament on issues that have arisen during the reporting period and offer recommendations intended to improve the efficiency and effectiveness of the scheme. In practice, reports of this kind have been described as the NDIS General Issues Inquiry. Submissions to the inquiry may be made at any time. The objective of the committee's NDIS General Issues Inquiry is to identify broad systemic issues relating to the implementation, performance, governance, administration and expenditure of the NDIS.

1.4The committee also self refers inquiries on particular areas of the scheme and its administration that require focused work.

Purpose of this report

1.5This is the committee's first report in the 47th Parliament for this inquiry and canvasses the work of the committee since the commencement of the 47thParliament on 26 July 2022. It also coincides with ten years of committee operation and ten years since the NDIS commenced in its trial phase.

1.6This report provides an opportunity to reflect upon the achievements of scheme, what has worked and what has not, where we have been and where we are going. The structure and content differ from previous general issues reports, as this report includes a retrospective analysis—charting the committee's work over the decade against the phases of the implementation of the NDIS.

1.7That said, the committee has not simply focused on the past. In this report, the committee has identified three key themes that capture the key issues that it has heard time and time again. These three areas represent the largest number of unresolved issues where work remains to be done.

Structure of the report

1.8This report consists of seven chapters, as follows:

Chapter 1 (this chapter) provides general information about the committee and the conduct of its general issues inquiry, and places the report within the context of contemporary developments in relation to the scheme.

Chapter 2 gives an overview of the committee's work in the 47th Parliament.

Chapter 3 provides a retrospective view of the committee's first ten years of oversight of the NDIS.

Chapter 4 examines the scheme's implementation of co-design with people with disability and other key stakeholders.

Chapter 5 discusses a range of issues that impact the ability of participants to exercise choice and control in relation to their supports.

Chapter 6 analyses issues relating to the long-term sustainability of the NDIS.

Chapter 7 outlines the committee's views.

Context for the report

1.9Since the scheme's establishment and trial phases ten years ago, the NDIS has continued to evolve. This report comes at a time of significant change for the scheme, and for people with disability more broadly, as governments grapple with a number of challenges. In its capability and culture report, the committee observed that 'recent government initiatives, such as the Disability Royal Commission and the NDIS Review, have given the disability community hope for positive change'.[3]

1.10This section of the report outlines some of the most significant developments of the past 12 months. Their impact on the NDIS, and the committee's work, is considered in subsequent chapters.

Disability Royal Commission

1.11In September 2023 the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability came to an end. Established in April 2019, the Royal Commission received over 7900 submissions, conducted 1785 private sessions and 32 public hearings, and 12 policy workshops.[4]

1.12The groundbreaking final report of the Royal Commission makes 222recommendations 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'.[5]

1.13The work of the Royal Commission feeds into the committee's understanding of a number of key issues relating to the NDIS, including the need for meaningful co-design, and to protect and increase choice and control for people with disability.

NDIS Review

1.14On 18 October 2022, the Hon Bill Shorten MP, Minister for the NDIS, announced the NDIS Review, to be conducted by an independent review panel, co-chaired by Professor Bruce Bonyhady AM and Ms Lisa Paul AO PSM. The panel would report directly to Disability Reform Ministers, and was tasked with consulting widely to analyse the effectiveness of, and challenges to, the NDIS and the NDIS market, and propose solutions to:

improve the experience of participants;

safeguard the sustainability of the NDIS; and

improve the responsiveness and capability of the NDIS and the NDIS market.[6]

1.15The NDIS Review released its final report in December 2023, recommending a profound overhaul of the way in which disability support services are funded, coordinated and provided across the nation. Reviewers said:

In our … report, we make 26 recommendations with 139 actions to change the system that supports people with disability.

Our recommendations provide a blueprint to renew the promise of the NDIS and deliver a more accessible and inclusive Australia.

We want all governments to commit to creating a unified ecosystem. The NDIS should be one part of a big system that supports people with disability.

The disability system must be looked after as a whole. This will deliver better outcomes for people with disability in a more responsive and cost effective way.

… Now, more than ever, we call on you to work together to deliver the NDIS. The NDIS is not sustainable without major reforms. And without sustainability there is no certainty.

Our proposed reforms are the best way to ensure sustainability while also achieving a much fairer system. A system of support for all people with disability, not just those in the NDIS.[7]

1.16Chapter 6 of this report considers the issue of sustainability of the NDIS, drawing on the findings of the NDIS Review, along with evidence received by the committee for the current inquiry, and over the last ten years.

Government response to the NDIS Review

1.17On 30 January 2024, the Hon Amanda Rishworth, Minister for Social Services and Minister Shorten announced a range of investments to improve the participant experience and secure the future of the NDIS in line with the independent review. This funding includes:

$54.6 million for fairer and better ways to access an NDIS Budget;

$49.7 million for improved home and living options;

$10.2 million to repair the market for better ways to access and pay for supports; and

$3.6 million to undertake design and consultation work on a system of best practice early childhood supports.[8]

1.18At the same time, the government announced the commencement of work on a Foundational Supports Strategy. The strategy aims to restore the original vision of the NDIS supporting people with significant and permanent disability, within a broader ecosystem of supports, consistent with the recommendations of the independent NDIS Review.

1.19Foundational Supports are expected to include support for all people with disability, whether they have an NDIS plan or not. There are also to be targeted supports for people who are not eligible for the NDIS, but who still require additional support.

1.20At a National Cabinet meeting in 2023, all state and territory governments committed to jointly design and fund Foundational Supports on a 50-50 basis with the Federal Government.

1.21The government announced $11.6 million over two years to support the development and implementation of the strategy.

Note on terminology

1.22References to submissions in this report are to individual submissions provided to the committee's NDIS General Issues inquiry and published on the committee's website, unless otherwise indicated. References to Committee Hansard are to proof transcripts, unless otherwise indicated.

1.23The committee acknowledges that there are various terms used to reflect the diversity of Aboriginal and Torres Strait Islander cultures and identities. In this report, the terms 'Aboriginal and Torres Strait Islander people' and 'First Nations people' are both used, with respect.

1.24The committee also notes that some submitters and witnesses may refer to NDIS participants and other people with disability as 'clients' of particular services. This report may use the term 'client' when quoting from a submission or a hearing transcript. Otherwise, the report uses the terms 'participant', 'person with disability' and 'people with disability', with respect.

1.25The committee recognises that people use many terms when talking about disability. The committee is aware that there are people in the community who prefer 'people first language', people who prefer 'identity first language', and people who use terms interchangeably.

1.26People first language seeks to put the person before their disability and avoid the disability becoming the primary, defining characteristic of an individual. For example, 'person with disability'. Identity first language reflects the belief that being disabled is a core part of a person's identity which cannot, and should not, be treated as separate. For example, 'disabled person'.

1.27The committee recognises there is no consensus as to which language should be used, and that each member of the community will have their own opinion on terminology. The committee also understands that each person will have a preferred way of communicating and self-describing. The committee respects that language is an individual and highly personal choice.

1.28In the context of this inquiry, the committee has used people first language in its report.

Acknowledgement

1.29The committee's observations and recommendations have been informed by evidence generously provided by individuals and organisations impacted by the scheme. The committee is grateful to all those who have shared their expertise, knowledge, ideas, and personal stories with the aim of improving the scheme for the future.

Footnotes

[1]Joint Standing Committee on the National Disability Insurance Scheme (JSCNDIS), Progress report on the implementation and administration of the National Disability Insurance Scheme (Firstprogressreport), July 2014, p. 1 (accessed 31 January 2024).

[2]JSCNDIS, Committee resolution (accessed 31 January 2024).

[4]Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, A brief guide to the Final report, p. 4 (accessed 31 January 2024).

[5]Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability, Final Report: Executive Summary, p. 37 (accessed 31 January 2024).

[7]NDIS Review, Working together to deliver the NDIS, 7 December 2023 (accessed 31 January 2024).

[8]The Hon Amanda Rishworth MP, Minister for Social Services, and the Hon Bill Shorten MP, Minister for the National Disability Insurance Scheme, 'Building a strong system of disability supports', Media release, 30 January 2024.