On the 8th of October, The National Disability Insurance Agency (NDIA) has released its Annual Financial Sustainability Report, but what does this mean for you as a disability service provider and your participants?
“An annual financial sustainability report (AFSR) is required under section 180B of the NDIS Act and provides an assessment of the financial sustainability of the National Disability Insurance Scheme (“the Scheme”, or NDIS). The AFSR is produced using data at 30 June each year and a summary of each year’s AFSR has been included in the NDIA annual report”
Before we dive in, let’s clarify the definition of Financial Sustainability according to the “The NDIS Insurance Principles and Financial Sustainability Manual”
- The Scheme is successful on the balance of objective measures and projections of economic and social participation and independence, and on participants’ views that they are getting enough money to buy enough goods and services to allow them reasonable access to life opportunities – that is, reasonable and necessary support;
- Contributors think that the cost is and will continue to be affordable, under control, represents value for money and, therefore, remain willing to contribute.
The NDIA uses historical information to estimate the statistics for the next ten years of the financial situation of National Disability Insurance Scheme (NDIS) service providers and participants. The Financial Sustainability Report provides transparency from the disability scheme and state governments in relation to the scheme’s trajectory to its participants and providers. “The sustainability of the Scheme continues to be a crucial issue, and it is important that these projections are made available,” Mr Hoffman, the NDIA CEO, said. “We know the NDIS is growing at a rapid rate, with the numbers in this report being significantly higher than those estimated by the Productivity Commission in 2017.”
The NDIA now estimates that there will be 670,000 people accessing the NDIS by June 2025, of which 35,000 will be over the age of 65, and over 855,000 people supported by June 2030 with over 55,000 will be seniors. Within ten years, total costs will reach an estimated $59.3 billion on an accrual basis compared to next year’s estimate of $29.2 billion. Annual Financial Sustainability Report – NDIA.
This year the most significant issues the NDIA classify are:
- Projections of the number of future participants in the Scheme by 2030 are significantly higher than the number of participants estimated by the Productivity Commission in 2017.
- The average annual funded package for participants has also increased more than expected each year. The average annual increase in payments per participant has been 11.8 percent per annum over the last four years.
- In projecting Scheme costs, a lower rate of future payment increases has been assumed. If past rates continue then projected costs could be significantly higher.
- It was expected that many participants who received early intervention support would then transition out of the Scheme to be supported by mainstream and community services. This is not happening at the rate projected.
The NDIS plans to build further financial stability by using more consistent evidence-based decision making, alongside regular monitoring of participant’s experiences to improve and manage current and emerging risks.
A total of 16 recommendations arising from the analysis undertaken in the development of this AFSR report (you can read all 16 recommendations on page 99 of the report)
We have provided a snapshot of the recommendations number two to recommendation number five, these recommendations focusing on participant outcomes;
The NDIA should continue work on prioritising, implementing, and measuring the impact of initiatives that aim to improve participant outcomes.
The NDIA should prioritise the completion of existing projects that support participants to make and communicate informed, evidence-based decision
The NDIA should continue to make progress in reviewing, developing, and communicating the evidence base for different forms of early intervention supports
The NDIA should continue to develop initiatives that provide participants with a greater range of service options to suit their own needs and circumstances. This includes innovations in market development and provider service delivery.
As a relationship-driven CRM NDIS software product for the Australian NDIS market, iplanit supports disability service providers by producing evidence-based data for improving clients outcomes, reaching goals and aspirations, and meeting client compliance and providing safe NDIS service delivery.
Championing person-centred support via bespoke NDIS software development have provided an opportunity for participant supported by iplanit CRM to plan an essential role in their care planning process. This has seen a greater emphasis on co-design of service support, where the service provider will partner with the participant, the family, and other stakeholders by the iplanit CRM platform to co-design a unique individualised service schedule, and share support plan, risks, goals are more as appropriate.