Investment

Summary report regard to PC’s proposal of NDIS and NIIS

On 10 August 2011, the Gillard Labor Government announced its commitment to commence working with all states and territories on measures to develop the groundwork for a National Disability Insurance Scheme. As can be seen, a brand new DI (disability insurance) environment is going to be developed. For us to keep in pace with the industry, we have to examine the new scheme thoroughly in order to identify the opportunities as well as the threats.

First of all, what is the NDIS? Based on the Executive summary from the Productivity commission report, the NDIS is like Medicare, it provides insurance cover for all Australians in the event of significant disability. However, it only proposes to fund long term, tailored, high quality care and support, not income. Specifically, the support includes “Aids and appliances and home and vehicle modifications, Community access supports，Respite，Specialist accommodation support，Domestic assistance，Transport assistance，Supported employment services and specialist transition to work programs，Therapies，Local area coordination and development，Crisis/emergency support and Guide dogs and assistance dogs.” The NDIS not only provide services and supports to all the Australian permanent residents who acquire a disability meeting the scheme’s criteria, but also offer information and guidance about choosing the most effective care and support groups. Nevertheless, such a big reform is going to cost about AUD$13.5 billion per annum, and the full-scale will be rollout in a few regions in mid-2014.

Secondly, the Final Report concluded that “the current disability support system is underfunded, unfair, fragmented, and inefficient.” Therefore, how will the NDIS overcome the present system’s problem? “Underfunded” is in the first place, NDIS will be funded through National Disability Insurance Premium Fund, in which is provided by the more efficient and sustainable taxes. The...