Opinion: Goodwill shortage plagues scheme

The NDIS was designed as a rights‑based, market‑driven scheme: funding and choice for people with disability, delivered through a competitive provider market. But that model only works if NDIS Providers survive long enough to deliver services. 

This morning’s news about Bedford Group and last month’s news re Annecto only reinforces this point.

NDIS participants and providers are being worn down through price signals, payment delays and relentless plan reductions (especially for participants who can’t self-advocate and whose providers aren’t permitted to speak up).

In my latest Business News column, I write about the failure of the NDIS market. Stewart Brown’s latest data shows 67.1% of registered providers reported an operating loss in FY24 — up from 47.2% just three years ago. Total margins have declined from -0.5% to -3.5%. In the therapy space, Occupational Therapy Australia reports 60% of OT NDIS practices are expected to record a loss or only break-even last year. Another 8% have already left the market. That’s 7,000 participants losing access to care. And that’s just one profession.

If government policy is to let the market fail in order to reduce the size of the Scheme, it should say so. Every time a provider exits the sector, participant choice narrows. And the foundational promise of the NDIS — that people with disability would be supported to live with dignity, autonomy and the same rights as every other Australian — slips further out of reach.

Yes, the Scheme needs to be reined in. However, I can tell you right now that targeting the very participants (and their providers) who need specialist supports to stay out of hospital, stay safe at home, or simply stay alive — is risk-shifting (to providers, to the States & Territories) not reform.

Disclaimer

The information contained in this publication does not constitute legal advice and should not be relied upon as such. You should seek legal advice in relation to any particular matter you may have before relying or acting on this information. The Lavan team are here to assist.