Labor aims to reach an agreement on the Thriving Kids program ‘by the end of the year’

Key Concepts

• NDIS (National Disability Insurance Scheme): A government-funded scheme providing support to people with permanent and significant disabilities.
• Thriving Kids: A proposed new program aimed at providing foundational supports for younger children with developmental needs, potentially diverting them from the NDIS.
• Foundational Supports: Services and assistance provided to individuals, particularly young children, to help them develop and thrive.
• Provider Viability: The financial sustainability of organizations that deliver services within the NDIS.
• Royal Commission Implementation: The process of enacting recommendations from the Royal Commission into Violence, Abuse, Neglect, and Exploitation of People with Disability.
• Medicare System: Australia's universal healthcare system, which the Commonwealth government can leverage for certain support programs.
• First Ministers: The Prime Minister of Australia and the Premiers of each state and the Chief Minister of the Northern Territory.
• Cost Growth: The increase in the overall expenditure of the NDIS, driven by factors like participant numbers, service costs, and an aging population.
• NDIS Fraud: Illicit activities within the NDIS aimed at financial gain, requiring robust compliance and integrity measures.
• Net Zero: A target for reducing greenhouse gas emissions to a state where the amount of emitted carbon is balanced by the amount removed from the atmosphere.
• World Heritage: A designation by UNESCO for sites of outstanding universal value, such as the Daintree Rainforest.

NDIS Reform and Thriving Kids Program

The discussion centers on the ongoing reform of the National Disability Insurance Scheme (NDIS) and the development of a new program called "Thriving Kids." Minister for the NDIS, Jenny Mallister, addresses concerns raised about the progress of these reforms, particularly the perceived lack of clarity on the "Thriving Kids" initiative.

Thriving Kids: Purpose and Design

• Objective: The primary goal of "Thriving Kids" is to provide support to families with young children who require assistance but for whom the NDIS might not be the most appropriate or effective form of support.
• Rationale: Advice suggests that individualized, one-on-one NDIS packages may not always be ideal for young children. The program aims to offer supports in natural settings like childcare centers, schools, and health systems.
• Target Cohort: The focus is on identifying which cohorts of families and children would benefit most from these foundational supports.
• Implementation Timeline: Discussions are underway with states and territories, with the hope of concluding by the end of the year and initiating the rollout of "Thriving Kids" by mid-next year.
• Commonwealth Levers: The Commonwealth government is considering using levers within the Medicare system to facilitate the establishment of "Thriving Kids."

Negotiations with States and Territories

• Forum: The negotiation for "Thriving Kids" is occurring in a separate forum from the broader NDIS reform discussions, as agreed by First Ministers in 2023. This linked negotiation involves both health and disability matters.
• Progress: Officials are meeting regularly, but the process is described as taking a long time.
• State Concerns: Reports indicate that states nearly pulled out of a recent meeting, suggesting potential disagreements. Mallister acknowledges that states and territories have specific items they wish to discuss on the agenda.
• Funding Offer: The Commonwealth has put an offer of new money on the table, building on the 2023 First Ministers' agreement. This offer includes $2 billion from the Commonwealth, intended to be matched by states and territories.
• Shared Interest: Mallister emphasizes that both states and the Commonwealth have a shared interest in reaching an agreement to ensure fair funding for hospital systems and a well-functioning NDIS.

NDIS Eligibility and Access Arrangements

• No Pre-emptive Changes: Minister Butler has stated that changes to NDIS access arrangements will not be made until the "Thriving Kids" program is in place, to avoid participants falling between systems.
• Future Assessment: Any potential changes to access arrangements will be considered after assessing the supports and cohorts benefiting from "Thriving Kids."
• Distinction: The difference between a child with mild autism treated under "Thriving Kids" and one remaining on the NDIS is not yet fully defined but will depend on the program's design and eligibility criteria.

NDIS Sustainability and Growth Targets

The conversation addresses concerns about the rising costs of the NDIS and the government's strategy for managing its growth.

Growth Target

• Current Target: The NDIS is on track to meet the 8% growth target agreed upon by First Ministers in 2023.
• Medium-Term Ambition: Minister Butler has signaled a medium-term growth target of 5-6% to align with other similar social programs.
• Rationale for Target: This target is influenced by cost growth (price of services) and population growth, including the aging of the existing NDIS participant population who may require more support over time.
• Government's View: The government aims to bring the scheme back to its core purpose of supporting people with significant and permanent disabilities, suggesting that some expansion beyond this core purpose has occurred.
• Public Perception: The interviewer notes that many Australians would prefer to see the NDIS spend flatten or decrease, rather than rise to $100 billion.

NDIS Fraud and Compliance

• Previous Government's Approach: The previous government is described as "comically delinquent" in its approach to NDIS compliance, not requiring evidence of service before payment.
• Current Government's Actions: The current government has had to build compliance systems from the ground up, investing in staff and IT infrastructure.
• New Interventions: The government is planning new interventions to combat fraud and ensure the scheme operates with integrity. Legislation is being considered, with "all options on the table."
• Scheme Integrity: Australians value the NDIS and support people with disability but expect the scheme to be run fairly.

NDIS Workforce Growth

• Increased Staffing: The NDIS has seen significant growth in its workforce, with over 10,000 staff, nearly double the number when Labor took office.
• Rationale for Growth: This increase is attributed to the need for a workforce commensurate with the scheme's size to assess eligibility, monitor fraud, and manage the growing number of participants.
• Permanent Workforce: The government favors a permanent public service workforce over labor hire, believing it serves the scheme better for systematic operations.
• Cost Management: While acknowledging the cost of a larger workforce, the primary cost concern is the growing payments within the scheme itself, which the government aims to manage through growth targets.

Climate Change Policy and Energy Prices

The discussion briefly touches upon climate change policy and its impact on energy prices.

Net Zero Policy

• Coalition Division: Mallister criticizes the Liberal Party's division over energy policy, stating that in 10 years of government, they were unable to settle on a clear policy.
• Consequences: This policy division led to no clear plan to address the closure of coal power stations, resulting in real costs for the community.
• Uncertainty: The government questions the Liberal Party's stance on emissions reduction, noting the lack of clarity on their specific policy.

Energy Prices

• Cost of Living: Mallister acknowledges that energy prices are a concern for Australians and a focus for the government in addressing the cost of living.
• Government Support: The government has implemented measures like tax cuts and cheaper medicines.
• Energy Rebates: The Treasurer has indicated that energy rebates are not a permanent feature of the budget.

Social and Political Commentary

The interview also includes commentary on a protest and the passing of a former Labor figure.

Anti-Semitic Protest

• Condemnation: Mallister strongly condemns a rally described as offensive and targeting the "Jewish lobby." She states that such actions are the opposite of what it means to be Australian and of patriotism.
• Police Handling: She defers to the Police Commissioner's investigation into the handling of the protest.

Graeme Richardson's Passing

• Tribute: Mallister expresses sadness at the passing of Graeme Richardson, acknowledging his significant contributions to the Labor Party and his mentorship of many.
• Environmental Legacy: She highlights his strong interest in environmental issues and his "unassailable" legacy in inscribing the Daintree Rainforest into World Heritage.