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Joint Standing Committee on the National Disability Insurance Scheme Independent Assessments

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ANSWER TO QUESTION

JOINT STANDING COMMITTEE HEARING

QUESTION ON NOTICE

PDMS reference: IQ21-000022 Date asked: 18 May 2021 Asked by: Hon Kevin Andrews MP

The attached answer has been approved by the Minister for the National Disability Insurance Scheme and Government Services.

SENATOR THE HON LINDA REYNOLDS CSC / /2021

Encl.

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Joint Standing Committee on the National Disability Insurance Scheme

Independent Assessments

Public Hearing – 18 May 2021 ANSWER TO QUESTION ON NOTICE

National Disability Insurance Agency

Topic: Financial Sustainability

Question reference number: IQ21-000022

Senator: Carol Brown Type of Question: Written. Date set by the Committee for the return of answer: 01 June 2021

Question:

Question 1

The NDIA and the Minister have suggested that over the last three or four years NDIS costs have increased at 12 per cent per annum or 50 per cent in total.

a. Would the NDIA provide full details on how these numbers have been calculated?

b. Given that the SCHADS award was being adjusted upwards on an annual basis during this period every December until December 2020, what would the increases in NDIS costs have been without changes in the SCHADS award?

c. In addition to taking account of changes in the SCHADS award, what would the increases in NDIS costs have been without the additional temporary COVID surcharge on NDIS prices and the Temporary Transition Price (TTP)?

d. In addition to taking account of the factors in b) and c) above, what would the increases in NDIS costs have been if changes in all plans between Plan 1 and Plan 2 had been excluded from the calculation of cost increases?

e. In addition to taking account of factors b), c) and d) above, what would the increases in NDIS costs have been if changes in all plans between Plan 2 and Plan 3 had also been excluded from the calculation of cost increases?

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Answer

a. The NDIA has outlined in the NDIS Quarterly Report to disability ministers how average payments per participant have increased over the 3 years to 31 March 2021. This is shown on page 69, figure 38 of the Quarter 3 report to Disability Ministers available at: https://www.ndis.gov.au/about-us/publications/quarterly-reports . Average payments per participant in the 12 months to 31 March 2018 were $37,400. This increased to $53,200 per participant in the 12 months to 31 March 2021. The increase over the 3 years is 42% which is an average annualised increase of 12.5%.

b. For workers covered by the Social, Community, Home Care and Disability Services (SCHADS) Industry Award 2010, wage increases apply as a result of the Equal Remuneration Order (ERO) and the Fair Work Commission’s Annual Wage Review. These increases resulted in an increase of 8.5% in excess of the wage increases shown in Figures 3 and 4 on page 11 of the Quarter 3 report to Disability Ministers. Allowing for the proportion of price represented by wages (80-90%), and the proportion of NDIS costs represented by attendant care (about 75%), this equates to an overall increase in cost per participant of about 5.5% over the 3 year period. Hence the increase without the SCHADS award would have been 36.5%

c. The loading due to the Temporary Transition Price (TTP) represents 0.8% of NDIS costs. The additional expense arising from COVID-19 represents approximately 0.5% of NDIS costs. The increase in plan values excluding both the TTP and SCHADS related increases would have been about 35%.

d. Figures 6 and 7 on pages 13 and 14 of the Quarter 3 report to Disability Ministers outlines that increases in costs per participant have been: * 92% for participants on their fifth plan from Plan 3 to 5 * 65% for participants on their fourth plan from Plan 3 to 4 These increases are similar to or higher than increases observed for these participants from Plan 1 to 2 and from Plan 2 to 3. Hence the increase excluding the increases from Plan 1 to 2 is not lower than 35%.

e. Figures 6 and 7 on pages 13 and 14 of the Quarter 3 report to Disability Ministers outlines that increases in costs per participant have been: * 92% for participants on their fifth plan from Plan 3 to 5 * 65% for participants on their fourth plan from Plan 3 to 4 These increases are similar to or higher than increases observed for these participants from Plan 1 to 2 and from Plan 2 to 3. Hence the increase excluding the increases from Plan 2 to 3 is not lower than 35%.

Joint Standing Committee on the National Disability Insurance Scheme

Independent Assessments

COMMITTEE

QUESTION ON NOTICE CLEARANCE SHEET

  • Number: IQ21-000022
  • Date Due to Table Office: 1 June 2021
  • Cleared by: Lisa Studdert Deputy Chief Executive Officer [redacted — s22(1)(a)(ii)]
  • Contact Officer: Renelle Forster Branch Manager, Parliamentary, Ministerial & FOI Parliamentary, Ministerial & FOI [redacted — s22(1)(a)(ii)]
  • Additional Comments:

Previous answers: [Select at least one option below]

  • ☒ This question (or similar) has not been asked at a recent Senate Estimates hearing.
  • ☐ This question (or similar) has been asked at a recent Senate Estimates hearing. Ref Nos: [Add PDR No/s]. Copy/ies attached and wording has been used in preparing this response.
  • ☐ This question (or similar) has been asked previously via a Parliamentary / Parliamentary Committee Inquiry Question on Notice. Ref Nos: [PDR No/s]. Copy/ies attached and wording has been used in preparing this response.

Data Verification

  • Source: N/A
  • Data Checked by: N/A

Departmental Clearance:

  • Cleared by email on: 2 June 2021 by: Name: Lisa Studdert Position: Deputy Chief Executive Officer
  • Contact phone number: [redacted — s22(1)(a)(ii)]

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