NDIS costs on course to top $100b, eclipse age pension

The budget papers project the federal government’s contribution to the cost of the NDIS will grow by 13.8 per cent a year over the next decade, while state contributions are now fixed at 4 per cent.

This implies the cost of the scheme could hit $102 billion by June 2033, at which point the federal government would be on the hook for an $88 billion annual contribution.

Mr Albanese said he would engage with state and territory leaders about the scheme’s operation.

Under the current arrangements, the federal government bears the burden of any cost blowouts.

Mr Albanese said discussions were not necessarily about getting the states to pay more.

“What it’s about is making sure that we have appropriate management of the system to secure the best outcomes whilst making sure that it’s financially sustainable into the future,” he said.

“We want to make sure that Australians with disabilities get the support that they need because that will actually add to the economy. The full participation of people with disabilities in our economy and in our society is not only good for them, it is good for all of us.”

Disability Minister Bill Shorten last week brought forward a 12-month review into the NDIS’ operation, sustainability and responsiveness to participant needs.

Mr Shorten said the review was not about cost-cutting and would focus on improving the scheme. The manner in which the cost of the scheme is split between the states and the federal government will also be considered.

The review will be co-chaired by Melbourne Disability Institute chairman Bruce Bonyhady and former senior public servant Lisa Paul.

Finance Minister Katy Gallagher said on Wednesday the NDIS was growing faster than anyone thought.

“We need an answer on that. And that work is … underway,” she said.

As concerns grow over the number of people defrauding the scheme, the federal government pledged $126 million in Tuesday’s budget to establish a cross-agency taskforce to tackle fraud and serious non-compliance with the program.

Australian Criminal Intelligence Commission chief executive Michael Phelan warned in August as much as $6 billion of the scheme’s annual budget could be subject to fraud.

Opposition leader Peter Dutton said on Wednesday if the government had a plan to make the NDIS sustainable, they would have put it forward in the budget.

“We want to provide support to people who are most in need, and we want to make sure that the NDIS is sustainable because it’s an important piece of social infrastructure, but taxpayers need to be able to afford it,” he said.