NDIS spending in South Australia could decrease by A$1.3 billion — ABC News Australia

In South Australia, spending on the National Disability Insurance Scheme (NDIS) in 2030 could be A$1.3 billion lower than under the previous growth trajectory. This is stated in a Deloitte Access Economics report, ABC News Australia reports.

The authors of the document believe that the state is disproportionately vulnerable to federal changes to the NDIS. According to Deloitte, this difference in spending is equivalent to between 10,000 and 15,000 NDIS-funded positions in care and administration.

Risks to employment and services

In August, the federal government adopted legislative changes intended to limit the NDIS budget to approximately A$55 billion per year by 2030, instead of the projected A$70 billion. The reform provides for reduced funding for social and community participation, as well as stricter requirements for access to the programme.

Deloitte noted that in the previous financial year, retail, recreation and other sectors in South Australia benefited from approximately A$900 million in NDIS spending on social and community participation. Deloitte Access Economics senior partner David Rumbens said that reduced funding could limit the ability of carers of NDIS participants to enter the labour market.

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Disability advocacy organisation JFA Purple Orange warned that the reform could shift the financial burden and demand onto other systems, including the state healthcare system.

Funding for Thriving Kids

Part of the reform provides for transferring children under the age of nine with developmental delays or autism who have low or moderate support needs to the new Thriving Kids programme. The governments of South Australia and Australia have allocated A$230.3 million to this programme over five years, of which the state will provide A$135.5 million.

At the same time, Deloitte estimates that, under the previous NDIS trajectory, spending on this group of children in 2031 would have amounted to A$310 million. State authorities said they do not plan to increase their contribution to Thriving Kids. The first stage of the programme began in October, with full rollout planned by January 2028.