Annual Report 2016-2017

5.Message from the Chief Executive Officer

I am pleased to have the opportunity to introduce myself and acknowledge the fourth Annual Report of the National Disability Insurance Agency (NDIA).

I am excited by the opportunity to lead the NDIA during this next important phase. I believe in the purpose of the NDIS – to improve the independence, economic and social outcomes for people with disability, their families and carers, and in turn make Australia a better place.

I am driven by my values and look forward to bringing my personal experiences and skills to the NDIA. I have worked for over 20 years in the financial services sector, most recently as Managing Director of BankWest.

I am motivated to lead a high-performing organisation where the experience of the customer, or participant, is at the centre of everything that we do.

I would like to acknowledge the work of the Chairman, Dr Helen Nugent AO and the Board in improving the experience of participants and providers, and managing the Scheme’s long-term financial sustainability.

The NDIA would not be where it is today without the significant contribution of inaugural CEO, Mr David Bowen. David has taken the NDIA from an idea to a national organisation. I would like to take this opportunity to thank him and mark his significant contribution to people with disability, their families and carers.

This fourth Annual Report of the NDIA looks back at the significant body of work which has occurred over the last 12 months to improve outcomes for people with disability, their families and carers. As new CEO, I am looking forward to the future – both the challenges and opportunities that lie ahead.

To participants, their families and carers, service providers, peak bodies and the Australian community - thank you for your ongoing support of the Scheme. I am confident that together we can make a significant difference to the lives of Australians. 

Mr Robert De Luca, Chief Executive Officer

6.About the NDIS

The National Disability Insurance Scheme (NDIS or the Scheme) is a new way of providing support for people with disability, their families and carers in Australia.

The Scheme represents a fundamental shift in the way supports are provided to, and funded for, Australians who have a significant and permanent disability. It represents a once-in-a-generation social and economic reform, and will better the lives of hundreds of thousands of participants, and their families and carers, through a focus on improved outcomes.

Over and above existing mainstream supports, the Scheme will provide all Australians under the age of 65 with significant and permanent disability (referred to as participants), with the reasonable and necessary supports they need to enjoy an ordinary life, and to participate in employment and the community.

Consistent with the Scheme’s participant-centric approach, funding for these supports will be determined by an assessment of their individual needs, goals and aspirations.

Participant choice and control is a core feature of the Scheme’s design. In this new market-based system, once reasonable and necessary supports are determined, participants are deeply involved in making decisions around how their funds are spent, and how their supports are delivered. Participants are able to choose and move between disability providers rather than having providers contracted for them. In this way, participants are empowered to own their goals and aspirations, and to have a say in how they attain improved social and economic outcomes.

Insurance, not welfare

The NDIS is a social insurance scheme. Building the economic, education and social participation of Australians with disability is the core focus of the NDIS. This means the Scheme is aimed at delivery of better outcomes for people with disability through an insurance approach that invests to produce a long-term social and economic dividend for the whole country.

It marks a deliberate departure from a welfare-based approach, where the costs of providing disability support were viewed through a short to medium-term lens. The Scheme is intended to improve outcomes for participants and produce long-term fiscal and economic gains for Australia.

The Scheme takes a lifetime approach to supporting people with disability, informed by actuarial analysis. This means expenditure is considered over the life of an individual, and Scheme sustainability is measured by calculating the total future cost of supports for participants.

This social insurance approach is based on early investment and intervention, which will improve outcomes later in life and will reduce long-term costs.

This insurance approach is underpinned by four principles:

7.Develop actuarial estimates of the reasonable and necessary support needs of the targeted population.

8.Focus on lifetime value for Scheme participants.

9.Invest in research and encourage innovation.

10.Support the development of community capability and social capital.

How the NDIS fits into the National Disability Strategy

The NDIS forms an important part of the Government’s National Disability Strategy 2010–2020, a 10-year policy framework for improving life for Australians with disability, their families and carers. The Strategy supports Australia’s commitments to the UN Convention on the Rights of Persons with Disabilities. It guides public policy across all levels of government and drives change in mainstream, specialist disability programs and services, and community infrastructure.

The specialist disability supports provided by the Scheme complement the mainstream services provided by Commonwealth and state and territory governments, including health, education, housing, transport and safety.

CASE STUDY:

How the NDIS works with other government services

Carl is an NDIS Participant and Project Officer at the Australian Federation of Disability Organisations (AFDO). As part of his role with AFDO, Carl runs workshops to support participants, families and carers in their NDIS transition.

“When I’m running workshops we talk lots about what the NDIS is responsible for, and what other systems of support are responsible for. It can be a tricky topic, but I try to tell everybody the NDIS can’t be responsible for everything,” Carl said.

“A couple of years ago I was on the Disability Support Pension provided by Centrelink. I have a full-time job now so I’m no longer getting any income support through Centrelink, but that’s okay, I would much rather have my full-time job.

“I mainly use public transport where possible. The NDIS shouldn’t have to pay to make trains and buses more accessible for people with disability. The same with taxis, they are private companies that make a profit, so the NDIS can’t and shouldn’t use our taxes to make them accessible.”