Statement from NDIA CEO David Bowen in response to the Productivity Commission Position Paper on NDIS Costs

Posted on 14 June 2017

The National Disability Insurance Agency (NDIA) welcomes the Productivity Commission's report.

Like the Productivity Commission, we acknowledge the ground breaking nature of this reform. This imposes a significant obligation on the NDIA to improve outcomes for people with disability, their families and carers. This must be our core, unrelenting focus. That is what the National Disability Insurance Scheme (NDIS) is about.

In particular, we are pleased to see that the financial modelling and the number of participants is broadly in line with the NDIA's own work. The pressures facing the Scheme, which the Productivity Commission has highlighted, are the same as those that the NDIA has acknowledged and is working to address. The value of an insurance-based approach is that actions can be taken to address pressures in a timely way.

Equally, as the Productivity Commission has acknowledged, the NDIA recognises that much needs to be done to improve the planning process for participants. As the NDIA announced on 6 June, it has been proactively engaging with participants and providers since April 2017 to ensure the NDIS experience is the best that it can be. That work is progressing well, with further consultations having occurred with all key stakeholders since the 6 June commitment to deliver a much better experience for participants and providers based on an outcomes driven approach. The Board and Executive Management Team remain unequivocally committed to getting the balance right among participant intake, plan quality and the sustainability of the Scheme.

Reflecting the NDIA's market stewardship role, the NDIA has also commissioned McKinsey and Company to undertake an independent Price Review which will provide the evidence and transparency to ensure that any future price settings for supports and services underpin the critical objectives of the NDIS.

The NDIA will consider in detail other draft findings of the Productivity Commission and will respond to the Productivity Commission's invitation to provide written comments by 12 July 2017.