NDIS forecast to cost extra $8.8bn over estimates as Shorten announces independent review

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Labor blames Coalition neglect and promises review will not be about cost-cutting, despite escalating costs

The Albanese government has revealed the National

Insurance Scheme will cost an extra $8.8bn,as it brings forward an independent review into the scheme., confirmed on Tuesday the scheme was now forecast to cost more than $50bn a year by 2025-26. Shorten said the landmark NDIS was “arguably Australia’s best addition to the social framework of Australian society in the 21st century”. However, he said nine years of Coalition neglect had left it “not in the position which I think Australians would like to see it in”.Shorten said the independent review, which was flagged ahead of the May election, would be spearheaded by Prof Bruce Bonyhady, a disability reformer and economist, and Lisa Paul, a former federal departmental head.

He said the first phase of the review, led by Bonyhardy, would examine the design, operation and sustainability of the NDIS. The second phase, led by Paul, would look at market issues and workforce. Despite the escalating costs of the scheme, Shorten told reporters the review was “not about a razor gang and cost-cutting” and he said any reforms would be grounded in the principle of co-design with people of disability.

 

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