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Australian Providers Advocate for Stricter NDIS Registration Rules Ahead of Budget Reforms
Major NDIS providers are pushing for expanded registration requirements to improve service quality and reduce costs in the $50 billion scheme. The federal government is developing plans to limit the program's growth to 5 or 6 percent annually, with reforms expected in the May budget.
Apr 7, 3:00 PM·2m read1 source
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Major operators of the National Disability Insurance Scheme (NDIS) have called for stricter registration rules for providers. They argue that such measures would eliminate low-quality providers and lead to better services for participants. The push comes as the federal government seeks to control the scheme's expansion.
The NDIS, a $50 billion program supporting Australians with disabilities, currently has about 260,000 providers, with 94 percent unregistered according to the latest quarterly report. Unregistered providers can serve 26 percent of participants who self-manage their plans and 68 percent whose plans are managed by third parties.
Registration is mandatory only for services such as specialist disability accommodation, specialist behavior support, and plan management.
From July 1, the Labor government will require registration for supported independent living accommodation providers. This follows concerns over the $14 billion in NDIS expenditure related to accommodation. Martin Laverty, chief executive of provider Aruma, supported the change, stating it should extend to all NDIS services to ensure providers meet safety standards.
" — Martin Laverty, chief executive of Aruma Michael Perusco, chief executive of National Disability Services, highlighted issues with the scheme's flat pricing model. He noted that unregistered workers can charge the same rates as registered professionals for simpler tasks, such as grocery shopping or attending events, potentially at $70 per hour for sole operators with low overheads.
Perusco said this dynamic allows unsuitable providers to succeed while quality ones struggle financially.
Butler has outlined efforts to reduce the NDIS growth rate to 5 or 6 percent per year.
The government is evaluating options like adjusting eligibility criteria or lowering costs while maintaining participant numbers. Butler emphasized involving the disability community in the process. Prime Minister Anthony Albanese described the NDIS as a vital program that must remain sustainable and fit for purpose.
