States, Territories Agree to Pay More to Soften Ballooning NDIS Costs

With the cost of Australia’s National Disability Insurance Scheme (NDIS) growing at an unsustainable 14 percent a year, the federal government hopes to contain its growth to 8 percent. That means the “contribution escalation rates” of state and territory governments will increase from 4 percent to be in line with the actual scheme’s growth, now capped at 8 percent. The decision came out of a National Cabinet meeting on Dec. 6—a gathering of state and territory leaders with Prime Minister Anthony Albanese. The leaders also agreed to jointly design additional “foundational supports” for the NDIS. The Commonwealth will pay the remainder of the scheme’s growth, starting from July 2028. Without the intervention, the cost of the NDIS could start to erode other parts of the federal budget....