A deal on NDIS reform that would see the disability scheme’s funding capped each year is close to being reached, a federal minister says.
Finance Minister Katy Gallagher said the government was optimistic a bargain had been reached with the coalition on changes to the NDIS to rein in spending.
Under the reforms, growth in the NDIS would be capped at eight per cent per year, to counter forecasts showing the scheme’s annual cost would balloon to $50 billion by 2025/26, higher than the annual cost of Medicare.
Changes would also reduce the number of eligible new participants and change the criteria for funding under the NDIS.
While legislation had previously been delayed in passing the parliament due to the coalition and the Greens deferring the laws to a further inquiry, Senator Gallagher said she was confident a deal had been reached.
“We are pretty close and very hopeful,” she told reporters in Canberra on Sunday.
“Obviously, we’re got some work to do with states and territories as well, but that’s a really important bill to start trying to control that scheme to an eight per cent growth cap, as opposed to the speed with which it’s been moving.
“I don’t want to pre-empt some decisions that have been taken in party rooms and the rest, but I’m hopeful that we should see that through this week.”
The minister responsible for the NDIS, Bill Shorten warned on Tuesday he would “rip the Band-Aid off” to reform the disability scheme when negotiating with states and territories.
Mr Shorten said jurisdictions surrounding the reform have yet to agree about the disability supports they would need to provide.
In a speech at the National Press Club, the minister said states and territories had a “fundamental fear” they would be responsible for extra claimants, which he argued would not be the case.
“Our legislation will … decrease the cost curve, which is great. I think it’ll tighten up things,” he said in the address.
Opposition NDIS spokesman Michael Sukkar said there were some “worthy changes” in the reforms.
“We’ve been working pretty cooperatively with the government, and we’ll see if we can find some middle ground,” he told Sky News.
“If we do so, then that support will be forthcoming.”