The Federal Government’s controversial National Disability Insurance Scheme (NDIS) bill has passed the Senate after a deal was made between Labor and the Liberals.
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The legislation will cut $37.8 billion from the scheme over four years, with 240,000 participants to be removed and 110,000 diverted away.
Health and NDIS Minister Mark Butler claims the changes are necessary to tackle fraud and reduce costs.
“This is responsible reform that protects the integrity of the scheme while keeping people with disability at the centre of the NDIS,” he said.
Minister Butler told reporters on Tuesday that costs had “blown out by $13 billion”.
To secure the bill’s passage in the upper house, 63 government amendments were negotiated. Among them is a provision allowing vulnerable participants affected by new ministerial powers – which gives the Minister the ability to slash funding from certain categories across all participants by up to 99% – to apply for additional funding through a plan variation.
Advocates have raised concerns for those likely to be removed, particularly neurodivergent people and those diagnosed with severe mental illness or Down syndrome.
The changes are expected to reduce psychosocial support, forcing many to seek assistance elsewhere.
Budgets for remaining participants will be tightened, with the Federal Government capping spending on social and community participation activities at $26,000 annually.
Greens Senator Jordon Steele-John described it as a “bloody tough day”.
“All have said ‘wrong way, go back’. This bill will do harm, this bill will cost lives, we know that this bill will cost 10s of thousands of dollars,” he said.
