Let’s talk about last night…budget night.
In a speech given by Treasurer Josh Frydenberg, the Coalition Government delivered its 2022/23 budget. While budgets are always interesting, this one is particularly important because it’s the last time the Government can promote its plan for the country before the election.
So how did the National Disability Insurance Scheme come out? On the downside, the scheme is significantly more expensive than first predicted - be prepared for some ‘budget blowout’ headlines. On the upside, the government has committed to fully funding it by announcing an additional $39.6 billion over 4 years to meet the support costs of participants.
What does this mean?
Well, budgets are never for just one year. They usually include what the government expects to spend over the next four years.
For the NDIS, last year the government predicted that next financial year (starting from July 1, 2022) it would cost $28.3 billion to fully fund the Scheme. This year, they have revised this to $33.9 billion - that is an extra $5.6 billion next year alone. And those revised forecasts are expected to grow even higher in future years.
Take all these increases and you get an extra $39.6 billion over four years. That is a big increase, but it of course is very high level, and doesn’t necessarily reflect what happens to individual plans. The budget papers say this increase is largely due to new participants entering the NDIS, not because of any increase to individual plans.
We can also expect some action against the priorities in Australia’s Disability Strategy 2021‑2031, with funding allocated to develop targeted action plans, research and reporting of outcomes, and engage with the disability community.
The Government has also announced the National Care and Support Workforce Strategy, with an extra $249.1 million over four years to help support the care and support workforce.
But the big question is, does this budget actually meet the main issues and concerns held by Australians with disability? It's not enough for People With Disability Australia (PWDA). In a media release, the organisation said the Federal Government has ignored key budget requests that disability organisations have been advocating for over the last few months.
PWDA President Samantha Connor said, “We face the same cost of living pressures but there has been additional cost of living pressures since the COVID pandemic started, including in recognition of the increased need for PPE, rapid antigen tests and other disability-related supports.”
Responding to the budget, a key architect of the NDIS, Professor Bruce Bonyhady, said that, "We need to look at the very significant benefits the NDIS is providing, not just for people with disability but for all Australians."
"We have got to get away from the kind of short term cost cutting that we have been seeing and get back to the insurance principles that underpin the scheme - maximise opportunities for people with disability and minimise costs in the long term."
With the election to be announced soon, the implementation of the Coalition Government’s budget promises is dependent on the result at the ballot box. It is expected that on Thursday night, 31 March, the Labor party will deliver their budget response.
Keen to learn more about the election but don’t know where to start? Hireup is hosting an Election 101 session next week to cover all of the basics. Register now.
