Productivity Commission Review of the National Disability Insurance Scheme Costs
Friday 27 January 2017 @ 11.00 a.m. | Legal Research
The Federal Government has published the terms of reference pertaining to a Productivity Commission review of the National Disability Insurance Scheme costs. The report resulting from the review will be due on the 15 September 2017. The review was launched by Treasurer, Scott Morrison, pursuant to Parts 2 and 4 of the Productivity Commission Act 1998.
Background to the Review
The review is a result of the Heads of Agreement between the Commonwealth and the States and Territories on the National Disability Insurance Scheme. The review will be the final design of the full scheme prior to its commencement.
Terms of Reference
According to the Productivity Commission , the Commission will address the following issues for the review of scheme costs:
- the sustainability of scheme costs;
- jurisdictional capacity;
- cost pressures (including wages pressures);
- changes in the agreed escalation parameters;
- if efficiencies have been achieved within the scheme;
- whether there has been any impact on mainstream services; and
- examine the most appropriate levers to manage any potential cost overruns.
The Commission will take into consideration Commonwealth and State fun ding and governance arrangements for the NDIS, including financial contributions and risk sharing. It will take into account also the role of any other services in meeting reasonable and necessary support for people with profound disability. Mr Morrison adds that “in conducting the analysis, the Commission should take into account its 2011 report into disability care and support and subsequent agreements between governments for the implementation of the NDIS.”
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