Canberra, ACT – Significant reforms to the National Disability Insurance Scheme (NDIS) are set to reshape how Australians with mental health conditions, particularly psychosocial disabilities, receive support. An independent review, alongside new legislative changes, aims to introduce a “new approach” focused on recovery and a greater emphasis on state-based “foundational supports,” prompting concerns from disability advocates regarding potential service cuts and reduced access for vulnerable individuals.
The overhaul, driven by a need to ensure the scheme’s long-term financial sustainability, seeks to rein in projected costs, with the government aiming to cap annual growth at 8%.
Key Changes for Psychosocial Disability
The Independent NDIS Review, released in December 2023, laid the groundwork for many of the proposed changes, specifically recommending a “new, dedicated approach” for people living with psychosocial disability. This new approach is intended to better meet the episodic nature of mental health conditions and focus on personal recovery.
One of the most significant shifts involves the pathway to NDIS access for individuals with psychosocial disability. The Review recommends that, in the future, most new participants in this cohort will enter the scheme under Section 25, an “early intervention pathway.” This pathway typically offers support for up to three years, a stark contrast to the previous provision of lifetime support for those demonstrating permanent disability under Section 24. While the Minister for the NDIS has stated that no current participants will lose access to support, the implications for the 63,000 existing participants with psychosocial disability remain a concern.
Stricter Eligibility and Foundational Supports
The reforms include a tightening of eligibility criteria, with a stronger focus on “significant and permanent” disability. This has raised anxieties within the psychosocial disability sector, as many mental health conditions can be episodic or fluctuate in severity over time, potentially impacting access for individuals whose conditions, while serious, may not always meet the “permanent” threshold.
For individuals who may no longer qualify for NDIS support or who are transitioning off the scheme, there will be an increased reliance on “foundational supports” provided by states and territories. While these supports are intended to fill gaps, details on their scope and accessibility are still emerging, leading to uncertainty about the adequacy of services outside the NDIS. The NDIS Review has called for all Australian governments to jointly invest in psychosocial supports outside the NDIS to assist people with severe and persistent mental ill-health.
Addressing Cost Sustainability
The proposed NDIS reforms are largely in response to the scheme’s rapidly increasing costs. Projections indicated that NDIS costs could rise from $44.3 billion in 2024 to over $90 billion by the end of the decade. The overhaul aims to deliver $14.4 billion in savings over the next four years by targeting “plan inflation” and clarifying what supports can be funded.
The government has committed nearly $130 million over two years to design and implement the NDIS Review’s recommendations, in addition to an allocation of $468.7 million over four years to get the scheme “back on track”.
Concerns from the Disability Community
Mental health advocacy groups and peak bodies have voiced significant concerns about the potential impact of these reforms. Organizations like SANE Australia and the Victorian Mental Illness Awareness Council (VMIAC) have highlighted worries about reduced access to critical support, particularly for a vulnerable group where services are already difficult to obtain.
Advocates argue that treating mental health disabilities differently from physical or sensory disabilities could undermine the scheme’s original intent of equity and human rights. They are urging the government to consult thoroughly with consumers and ensure that any changes do not compromise the quality of life for individuals with psychosocial disability. There are calls for an impartial and individualised case-by-case approach to reviews to ensure participants are funded based on their unique needs and functional impact.
The legislative changes are expected to pass Parliament with bipartisan support, marking a significant new chapter for the NDIS and its participants. The focus now shifts to the detailed implementation of these reforms and the development of the “foundational supports” that will underpin the broader disability support ecosystem.
