Understanding the 2024-25 Federal Budget: What It Means for Australia's Disability Community

In this article we're going to work through the highlights (and also the lowlights) of the 2024-25 Federal Budget, and specifically its impact on Australia's disability sector. There were some pretty profound implications for our disability support ecosystem unveiled in the budget so buckle up!

With a mandate to save a substantial AUD 27.9 billion over the next four years, a significant chunk (14.4 billion) is dedicated from the burgeoning NDIS budgets that have been predicted in recent years. Whilst the upside of this news is that we are shifting the NDIS towards financial stability, there is no doubt going to be a downside for what is currently a lifeline for over 600,000 Australians with disabilities.

Key Budget Measures:

NDIS Savings: The government unveils plans to revamp the NDIS funding approval process, aiming to streamline operations and rein in projected expenditure spikes by 14.4 billion over the next four years. This initiative is complex, but of note in this saving was the decision last year to curtail growth to 8% annually from the 20% that occurred in the 22/23-23/24 fin year. However DSC said it best when they pointed out that 'The only catch is that it's all based on reforms proposed in the Getting NDIS Back on Track Bill- which has not yet passed parliament. It’s a bit of a case of counting your chickens before they hatch. And even if the Bill does pass parliament, we don’t have a detailed breakdown of how it will  deliver the promised savings'.

Specialised Disability Employment Program: It's been evident for some time that a revamp of the existing Disability Employment System is on the horizon, slated for implementation starting July 1, 2025. In a bid to facilitate this transition, the budget earmarks an additional $227.6 million towards the development of the new Specialist Disability Employment Program. This injection of funds brings the total commitment to a substantial $5.4 billion over the span of five years - a very welcome item in the budget to be honest! We know that when people with disability are supported to gain employment the outcomes are better for everyone.

1. Among the key features of this new program is the integration of a digital platform tailored for both service providers and participants. Furthermore, eligibility criteria are set to broaden, encompassing volunteers and individuals with a work capacity of fewer than eight hours per week.
2. Furthermore, the budget allocates $23.3 million over four years towards the establishment of a Disability Employment Centre of Excellence. This center is poised to serve as a hub for nurturing the capabilities of employment service providers. With a moniker as lofty as "Centre of Excellence," expectations are rightfully high for nothing less than exceptional outcomes.

Fraud Prevention: 268.1 million is dedicated to fighting fraud within the NDIS, this is in addition to the $83.9 million over two years to boost fraud detecting information technology systems at the NDIA, which was announced in February 2024. These initiatives reflects the government's commitment to safeguarding the scheme against fraudulent activities and ensuring that reforms are inclusive and consider the needs and perspectives of people with disabilities.

When it comes to fraud we without a doubt need better oversight and better systems to safeguard NDIS funds. However there seems to be a lot of government driven media slander about 'price gouging providers' and not a lot of evidence or transparency about how and where this is occurring. And in regards to the outcomes of the fraud taskforce, are we recouping as much as we are spending on this taskforce? I don't believe for a minute that ethical disability providers (and participants alike) wouldn't want to see fraudulent providers caught out, and there should be clear and accessible avenues for reporting, but it is extremely challenging to find the deliberated outcomes of the taskforce, and its ROI published anywhere. Just an observation...

Notable Reactions from the Disability Sector:

• People with Disability Australia (PWDA): Leaders, including PWDA President Marayke Jonkers, praise the increase in income support payments. However, they also express a strong desire for big changes that would help people with disabilities become more a part of their communities. Jonkers calls for working together to create a future where everyone is included.
• National Disability Services (NDS): Labelling the budget a "missed opportunity," NDS mourns the lack of substantive support for quality disability services. Amidst the tempest of uncertainty and escalating costs, NDS issues a rallying cry, urging action to instil confidence in a sector teetering on the brink.

As we look at the link between policy and progress, the 2024-25 Federal Budget shows us a clear view of our disability sector. While the government's efforts to steady the NDIS's financial ship and reinforce its safeguards are commendable (and necessary), the concerns from advocacy peaks like PWDA and NDS underscores the need for co designed and disability informed reform. As supporters of the disability community, we must keep pushing for decisions based on solid evidence. We need to make sure money is used well and the NDIS stays true to its purpose. Most importantly, we should focus on the needs of people with disabilities, not the red tape that has overcome the schemes original purpose and intent.