Australian Government, 2012‑13 Budget
Budget

Statement 1: Budget Overview (Continued)

First stage of the National Disability Insurance Scheme

The Government will provide $1.0 billion over four years for the first stage of a National Disability Insurance Scheme (NDIS) in up to four launch locations. The NDIS will fund reasonable and necessary lifetime care and support for people who suffer significant and permanent disability.

The Government's commitment responds to the Productivity Commission's (PC) report into disability care and support released last year. The PC found that the current disability care and support system is underfunded, unfair, fragmented and inefficient.

The Government is rolling out the first stage of an NDIS a year earlier than proposed by the PC.

Roll‑out of the first stage

From July 2013, assessments will begin in up to four launch locations to provide an initial 10,000 people who suffer significant and permanent disability with reasonable and necessary care and support. This will be expanded to 20,000 from 2014‑15. The launch of the first stage will test key design features and inform the scale and pace of the expansion to a full scheme. Negotiations with States and Territories will begin immediately with launch locations expected to be announced in late 2012.

The Government will continue to work with the States and Territories to develop the launch and plan for the roll‑out of a full NDIS.

As part of the first stage, people in launch locations who have a significant and permanent disability will have access to an assessment process that develops an individual support plan with funding allocated for reasonable and necessary support.

Funding for the first stage

The $1.0 billion of funding for the first stage includes:

  • $342.5 million over three years to fund individualised supports in the launch locations;
  • $213.4 million over four years to properly evaluate and assess people's needs and those of their carers and provide case management services through Local Area Co‑ordinators;
  • $122.6 million over four years to increase the capacity of the disability services sector to deliver NDIS services and supports. The disability support workforce will undergo a fundamental change and will expand significantly under an NDIS. This funding will assist the sector to make the transition; and
  • $240.3 million over four years to develop and implement an information communication technology system that will effectively monitor, track and evaluate the operation of the first stage, and provide a platform for future national roll‑out.

The NDIS will fundamentally change the way disability care and support is provided. It will provide peace of mind for people with significant and permanent disability and those who care for them.

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