NDIS Faces Financial Crisis: Grattan Report Proposes $12 Billion Savings with Strategic Reallocation
June 29, 2025
The National Disability Insurance Scheme (NDIS) is currently grappling with significant financial challenges, with projections indicating costs could soar from $42 billion to $58 billion by 2028, putting vital support for Australians with disabilities at risk.
Amid these financial strains, many individuals in need of support are not receiving adequate assistance, while others struggle to effectively utilize their allocated funds.
Compounding these issues, the Federal, State, and Territory governments find themselves in a negotiation deadlock over foundational supports for individuals who do not qualify for the NDIS, which is delaying essential services.
In light of these challenges, a report by the Grattan Institute suggests that the NDIS could be saved without incurring additional costs by reallocating 10% of its funding to develop foundational supports for those with lower intensity needs.
This plan not only aims to enhance support for individuals with lower needs but also projects potential savings of $12 billion in NDIS payments over the next decade, along with an additional $34 billion by avoiding new funding for foundational supports.
Implementing these foundational services would fill a critical gap, providing necessary support to individuals who do not require high-cost individual plans, thereby alleviating pressure on the NDIS.
As reforms are considered, it is crucial that the focus remains on the needs of people with disabilities, ensuring that the scheme is sustainable and beneficial for future generations.
Additionally, reforming NDIS eligibility criteria could direct children with developmental delays to more appropriate and cost-effective services, ultimately improving outcomes for families.
Summary based on 1 source
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Source

The West Australian • Jun 29, 2025
Hannah Orban: How the NDIS can be saved without spending any extra money