Government admits NDIS reforms will impact families, downplays fears over state readiness

Labor has downplayed concerns that state-based disability supports won’t be ready when needed, as the government pushes contentious NDIS reforms targeting fraud and spending through parliament.

A government-led Senate inquiry on Friday recommended National Disability Insurance Scheme changes should be passed with no substantial alterations.

The overhaul would cut a targeted $37.8 billion from the NDIS over four years and remove 160,000 participants by tightening eligibility requirements.

NDIS Minister Jenny McAllister said a deal between the government and the coalition to pass the changes was getting close.

“We’re really hopeful and I’d go as far as saying confident that we can reach an agreement,” she told ABC’s Insiders program on Sunday.

Opposition health spokeswoman Anne Ruston called for a strengthened fraud and corruption response within the disability insurance agency in the inquiry report.

Senator McAllister said the government was still considering evidence brought forward during the inquiry process and flagged fraud as an area to work through with the coalition.

But concerns about the changes remain among advocates — and from at least one state.

In a joint statement, 12 disability advocacy organisations said the reforms should not pass parliament in their current form.

“Reform must be genuine and well-sequenced,” the statement read.

“It must guarantee that people are not diverted from, or lose, NDIS supports unless alternative supports are funded, operational, accessible and available in practice.”

Queensland has resisted signing up to the Thriving Kids program, a major plank in federal plans to cut costs from the NDIS.

Under the program, which is due to be rolled out from October, some children aged eight and under with autism or developmental delays would be shifted onto state supports.

Queensland Disability Minister Amanda Camm has refused to back the agreement, labelling the change a cost-shifting exercise that lacked detail.

Despite the conflict, Labor remained confident people with a disability would not be left without the support they needed.

“We have until 2028 to get this right,” Senator McAllister said.

“We don’t need to contemplate delay at this point, because we are working with the states and territories toward that January 1 deadline.”

Labor’s NDIS plan would lead to average funding being cut by about $5000 a year for participants.

“It is a reduction and we don’t deny that it will have impacts on people with disability and their families,” Senator McAllister said.

She again dismissed calls to introduce an NDIS inspector-general, saying it would risk adding another layer of bureaucracy.

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