Media Statement – Clarification on NDIS Scheme costs

  • Media statements

The NDIA would like to clarify discussion of the Productivity Commission’s 2017 report on NDIS Scheme costs. 

The $30.6 billion estimated by the PC for the year 2024-25 consisted of:

  • $28.5 billion for participant supports; and
  • $2.1 billion for NDIA operating costs 

As stated in the 2021-22 Budget, participant supports costs are estimated to reach $31.9 billion in 2024-25.

Comparing like for like, the PBS figure is $3.4 billion or 12% higher than the $28.5 billion forecasted for participant supports in the Productivity Commission 2017 report.

The 2017 PC report is clear the figure of $30.6 billion includes Agency operating costs (see page 100, Table 2.3).

$billion  PC report (without operating cost)  2020-21 Current PBS Difference
2020-21    22.2 23.297 1.097
2021-22    23.7     26.487 2.787
2022-23  25.2     28.257 3.057
2023-24  26.8 29.425 2.625
2024-25  28.5     31.884 3.384
Total 2021-25 126.4     139.35 12.95

Note: Table 2.3 on page 100 of the 2017 PC Report combined Budget outcomes 1.1 (participant costs) and 1.3 (NDIA operating costs). The above table excludes operating costs to ensure comparison with PBS on a comparable basis. Table 2.3 only provided costs for 2019-20 and 2024-25. The intervening years are calculated based on an average growth rate of 6.5 per cent per year.