The Business Council of Australia (BCA) has welcomed the Government’s announcement of reforms to the National Disability Insurance Scheme (NDIS), describing the package as a fiscally responsible step toward returning the scheme to its original intent.
BCA Chief Executive Bran Black said the changes reflect the urgent need to put the NDIS on a more sustainable financial footing.
“The NDIS is one of Australia’s most important social programs and one of the largest parts of the Budget, so it’s critical for the scheme and the broader economy that it remains sustainable,” Mr Black said.
Mr Black said bringing the scheme’s growth rate down to 5 per cent is an important first step.
“We welcome these changes and while they won’t be easy, they are necessary to ensure the viability of the NDIS. Otherwise, a significant tax burden will fall on future generations.”
The BCA said it supports measures to tighten eligibility criteria, including a stronger focus on functional assessments and ensuring the scheme is directed to those Australians with significant and permanent disability.
“Making sure the NDIS is available for people with genuine need, alongside a stronger crackdown on poor practices and improving overall governance, is critical to restoring confidence in the scheme.”
Mr Black said reforms also need to be a shared effort across all levels of government and the BCA will work with the government and sector on how these reforms will be implemented, including changes to aged care and private health insurance.
Aged care
The BCA welcomed the Government’s commitment to expand aged care capacity, including support for the construction of around 5,000 additional residential aged care beds.
“Australia needs to continue building aged care capacity so older Australians can access the support they need as demand grows,” Mr Black said.
However, Mr Black said fiscal discipline must remain front of mind with concerns on the $1 billion reversal of aged care reform.
“While we support measures that protect access to basic personal care, the principle remains that those who can contribute to their own care should do so. Failing to strike that balance is not just a budget issue but an intergenerational one.”
Private health insurance
The BCA cautioned against unintended consequences from changes to private health insurance settings, particularly for older Australians.
“Changes that reduce the attractiveness or affordability of private health insurance, especially for Australians over 65, risk pushing more people into the public system and increasing pressure on already stretched hospitals.”
“We need to properly understand how this will play out across both the private and public systems and we will consult our members to ensure it doesn’t lead to additional pressure on public hospitals.”