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Background and policy context



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1.2 Background and policy context:

Development of an efficient, effective market is essential to the success of the NDIS. A substantial proportion of existing service providers will face difficulties operating effectively in the new environment without significant transformation. Providers, long accustomed to block funding, require support to transition to business models that are responsive to individualised funding. They will need to diversify their service provision to meet the support requirements of NDIS participants. The disability services workforce will need to expand to supply an increased level of services funded by the NDIS.

Similarly, many people with disability and their families, accustomed to rationing and limited choice, will require support to become informed and engaged consumers able to drive change in the market.

The Commonwealth’s Sector Development Fund (SDF) responds to these challenges, aiming to support market, sector and workforce transition through activities that:



  • create an efficient, responsive and innovative market that meets the diverse needs of people with disability and their families

  • support people with disability to effectively exercise choice and control.

Tasmania has been successful in securing $3.23 million for four projects under the SDF. The four SDF projects to be funded in Tasmania are:

1. Capacity Building for Providers which comprises: the establishment of an Expert Panel to assist providers to operate effectively in the new NDIS market, especially those providing services in regional/rural/remote areas of the state; and funding activities that support the workforce to transition, with a focus on leadership, diversity and person-centred delivery.

2. Sector Workforce Development – promoting the disability sector as a career of choice and increasing supply and availability of the allied health workforce in regional/rural and remote areas of Tasmania.

3. Individual Capacity Building including: the development of resources (such as videos/podcasts/printed materials) that support people with disability to access mainstream and community services and improving access for providers and people with disability in regional rural and remote areas through use of audio-visual equipment.

4. Individual Capacity Building– assisting ‘hard to engage’ people with disability to participate in the NDIS through the development and implementation of engagement strategies designed to help them access the scheme.

The projects will contribute to the following SDF outcomes:



  • Outcome 1: Building community capacity and engagement

  • Outcome 2: Increasing individual capacity and increasing new forms of support

  • Outcome 3: Building disability sector capacity and service provider readiness

  • Outcome 4: Expansion and diversification of the workforce

  • Outcome 5: Building the evidence base

A Memorandum of Understanding (MoU) is in place between the Department and the Commonwealth.

The majority of funds will be dispersed to organisations/consortiums as grants through a Request for Proposal (RFP) process. Successful proponents from the RFP process will be contracted by the Department to manage and deliver agreed project outcomes.




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