ANSWER TO QUESTION
JOINT STANDING COMMITTEE HEARING
QUESTION ON NOTICE
PDMS reference: IQ21-000024 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: IQ21-000024
Senator: Carol Brown Type of Question: Written. Date set by the Committee for the return of answer: 01 June 2021
Question:
Question 4
In response to question on notice NDIA IQ 21-000010 in part d. the NDIA states:
“As with TSP’s, draft budgets will provide a link between the Scheme’s overall funding and the allocation to each individual participant.”
Would the NDIA please advise the Committee, if Independent Assessments go ahead, what estimate of the Scheme’s overall funding will be used to calibrate draft budgets in 2021 – 22? Will it be $26.5 billion which is the forecast for total participant plan expenses as set out in the 2021 – 22 Portfolio Budget Statement or another estimate? If it is another estimate of overall funding what is the basis for choosing a forecast which is different to the projection in the Commonwealth budget?
Further, given that the NDIA is only responsible for setting plan sizes and actual utilisation has consistently been below 100 per cent, what assumptions about plan utilisation will be buit into projections of the Scheme’s overall funding and hence also draft budgets?
Answer:
The National Disability Insurance Scheme (NDIS) is a demand driven scheme. The Portfolio Budget Statement allocation for 2021-22 includes $26.49 billion for reasonable and necessary participant supports. This amount excludes Agency operating costs.
The NDIA Scheme Actuary produces a Financial Sustainability Report (FSR) each year which includes actuarial modelling of scheme projections, including plan budget sizes and utilisation. The NDIA publishes in the Annual Report each year, a summary of the FSR. This summary, which is on pages 93-96 of the 2019-20 Annual Report, discusses scheme projections, sustainability pressures and management responses to address these. As required under section 180E of the National Disability Insurance Scheme Act 2013, the Annual FSR is
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independently peer-reviewed by the Australian Government Actuary. Page 97 of the 2019-20 Annual Report refers.
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Joint Standing Committee on the National Disability Insurance Scheme
Independent Assessments
COMMITTEE
QUESTION ON NOTICE CLEARANCE SHEET
- Number: IQ21-000024
- 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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