Australia's National Disability Insurance Scheme has grown far beyond sustainable levels due to fundamental design flaws that have allowed unlimited access without clear boundaries, according to a new report from the Grattan Institute released Monday.
The scheme, described as "the largest social reform since Medicare was introduced," requires immediate restructuring to prevent fiscal collapse, said Dr. Sam Bennett, co-author of the "Saving the NDIS Report" and Disability Program Director at the Grattan Institute.
"Right from the outset, so once the scheme was introduced, many more people came in than were expected, particularly in the younger age groups," Bennett told Sky News Afternoon Agenda. "Very few of them leave, despite the fact that the NDIS was supposed to have an early intervention approach that was time-limited for many of those children."
The explosive growth stems from two primary factors: an unprecedented influx of participants and rapidly expanding individual funding plans once people enter the system. Children represent the fastest-growing demographic, creating long-term financial commitments that threaten the scheme's viability.
Bennett attributed the crisis to design defects embedded from the program's inception. "We put that down to design flaws that have been baked into the NDIS from the outset," she said. "It simply hasn't been clear enough, the scope of its liabilities and the clarity of the criteria by which you gain access to the scheme just haven't worked well enough."
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