Premiers revolt over federal NDIS law, fearing cost time bomb

State premiers are seeking urgent changes to a federal bid to overhaul the National Disability Insurance Scheme amid growing fears it will leave them with uncosted financial exposure to offset the soaring cost of the $42 billion scheme.

The extraordinary move comes after “red-hot anger” within state governments about the speed and scale of the federal changes, which aim to set up foundational services in locations such as schools and childcare centres for children to receive support without going on the NDIS. “We are not going to put change in the too hard basket, because people with disability deserve better,” he said.The meeting on Monday, held at 5pm, resolved to ask Shorten to delay the draft law because the scope of the plan was inconsistent with the national cabinet agreement last December.

In one policy note circulated among the states and territories, officials warned that there was not enough consultation on the way the proposed federal law would remove the current requirement for the states and territories to be consulted on funding changes. In the December agreement, Albanese said the Commonwealth would cover half the costs of delivering new services through state systems, mainly health and education, while states and territories would pay the other half.such as home support, aids and equipment, and psychosocial services for people with mental illness outside the scheme.

The proposed changes are central to the stated federal goal of limiting the annual growth in the NDIS to 8 per cent. The $42 billion scheme is one of the federal government’sand is forecast to cost more than $100 billion in a decade unless the system is changed.

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