More jobs and productivity
By Dexter Duncan
In previous two articles, we covered the crisis that would unfold without NDIS and we outlined the change to a goal based reporting system needed for individualised plans. This article covers the 3rd Outcome of NDIS you probably didn’t know, namely the huge increase in jobs and productivity expected from funding the NDIS. (See part 1: Avoiding Crisis or part 2: Goal based reporting)
Outside the basic productivity increase expected from centralising the funding and support services into a nationally run model, a substantial increase in funding is planned over the next few years to increase the number of people supported and to increase the number of service options.
Total Australian Government funding for DisabiltyCare and other disability service (Source: The Treasury)
The chart above shows Federal funding increases including the first year after full national roll-out (2019-20), with the dollar amount of $11.7 Billion representing 53% of the total cost of running DisabilityCare Australia. When including the States and Territories, the total funding projected by 2019-20 is $22.2 Billion.
Folks living in city centres and heavily populated suburbs are expected to have more choice. Choice will drive competition and create new services. There is a risk that some regional areas will continue on bulk funding models due to lack of demand/supply of services, but the vast majority of people under the DisablityCare system will have more control and choice over how and when they obtain support.
Outcome 3: More Jobs
An increase in Medicare Levy pays for a good chunk of the new spending, which is used to increase funding per participant (when compared to today), while increasing the number of people supported. With more funding, more participants and more choice combined with a focus on independence and community outcomes, there are three areas of job and productivity growth expected:
- Growth for Professionals in disablity sector. Funding and career opportunities in disability sector are estimated to double upon full roll-out of NDIS. As many as 25,000 new employees are estimated for NSW, with 70,000 more jobs across Australia by 2018.
- Increase in employment for disabled. Catching up to the OECD and implementing reform for disabled sector means more disabled people in the workforce. The productivity commission estimates an additional 320,000 jobs by 2050 realising almost 1% increase in GDP “above the counterfactual level.”
- Many primary carers return to work. With additional support, the productivity and lifetime benefit will slowly be added to primary carers as they move to adding more part time hours or entering full time work. The Productivity Commission estimates increase of $1.5 billion annually in GDP.
Composition of funding for DisablityCare Australia in 2019-20 (Source: The Treasury)
As you can see, the DisabilityCare Australia roll-out intends to drive structural change in our economy, while providing better and more equitable outcomes for those that deserve a fair-go.
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1. Above Chart is from Price Waterhouse Coopers, “Disability expectations: Investing in a better life, a stronger Australia“,
2. The Productivity Commission, “Disablity Support Chapter 20: The Benefits of reform”
3. DisablityCare Australia, May 2013 Federal Budget paper, Source: The Treasury.
4. NSW National Disability Insurance Scheme fact sheet, October 2013.