Estimated financial impact of a two month delay to the National Disability Insurance Scheme Amendment Bill

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National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024

Submission 20 - Attachment 2

OFFICIAL: Confidential

Delivered by the National Disability Insurance Agency Imm GPO Box 700 CANBERRA ACT 2601 1800 800 110 ndis.gov.au

1 July 2024 Dear Minister, I am writing to confirm the estimated financial impact of a two month delay to the passage of the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No.1) Bill 2024.

A two-month delay in the passage of the Bill is estimated to result in a $1.06 billion increase to NDIS expenditure over the forward estimates, including;

  • Delays in legislation amendments addressing intra plan inflation will result in an estimated $330 million increase to NDIS expenditure over the forward estimates
  • Delays in legislation amendments that enable development of a new budget model with NDIS participants and the disability community will result in an estimated $730 million increase to NDIS expenditure over the forward estimates.

The financial impact of a two month delay is detailed below.

Intraplan $0.33bn
Inflation (S33 2024/25 Budget). Two months delay reduces this impact
and related) in 2024/25 by 1/6 i.e. $0.33bn
Budget Model $0.73bn
Delay to implementation pushes savings profile out by
two months. Hence
  • original estimated benefits (incorporated in 2024/25 Budget) for 2025/26 now commence on 1 September 2025 under revised timing.
  • original estimated benefits (incorporated in 2024/25 Budget) for 2026/27 commence on 1 September 2026
  • original estimated benefits (incorporated in 2024/25 Budget) for 2027/28 commence on 1 September 2027

Original estimated benefits (incorporated in 2024/25 Budget) for 2027/28 are $4.4bn hence 1/6 of this moves outside the forward estimates period i.e. $0.73bn

National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024

Submission 20 - Attachment 2

OFFICIAL: Confidential

Total $1.06bn

Regards,

David Gifford,

Scheme Actuary Chief Data Officer and General Manager, Analytics, Data and Actuarial National Disability Insurance Agency M E @ndis.gov.au

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