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NDIS costs increase by $500 million since budget.

February 15
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The National Disability Insurance Scheme (NDIS) is set to cost $500 million more this financial year than was estimated just four months ago. At the October budget, it was forecasted to cost $35.5 billion for the 2022/23 financial year. However, it is now projected to reach $44.1 billion by 2024/25 and more than $50 billion the following year, surpassing the annual costs of Medicare. According to the scheme’s acting actuary David Gifford, the cost exceeded projections by $300 million from July to December 2022 and by $200 million during January 2023 alone. Payment predictions in January were set to be $2.7 billion, but the actual payment amount was $2.94 billion. Gifford stated that the January figures should not be seen as part of a growing trend. Last year, NDIS Minister Bill Shorten announced a review of the scheme, which is set to cost an extra $8.8 billion over the next four years. The Senate committee was also told that cases being examined by a task force cracking down on fraud within the scheme are worth approximately $250 million. However, One Nation senator Malcolm Roberts commented that this money would not go far, even if it was all reclaimed. He said, “Given the $52 billion (future cost of the scheme) and given the deep concerns about fraud, I’m wondering if we’re trying to bail out the Titanic with a coffee mug.”

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