The NDIS Sustainability Taskforce was not publicly announced but began work after the meeting between the prime minister, state premiers and health minister Mark Butler in January. Photograph: Mick Tsikas/AAPView image in fullscreenThe NDIS Sustainability Taskforce was not publicly announced but began work after the meeting between the prime minister, state premiers and health minister Mark Butler in January. Photograph: Mick Tsikas/AAPCuts to NDIS to be focus of Labor’s quietly launched ‘razor gang’ ahead of May budgetExclusive: Taskforce led by former Treasury official Anthea Long will advise on cost-cutting options for $52bn program
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Labor has quietly established a razor gang to drive budget savings in the national disability insurance scheme, as it works to further rein in costs ahead of next month’s federal budget.
An NDIS Sustainability Taskforce was established within the health department earlier this year, with instructions from the federal government and national cabinet to advise on cost-cutting options for the $52bn program.
Led by the former Treasury official Anthea Long, the taskforce was not publicly announced but began work after the 30 January meeting between Anthony Albanese, state premiers and the health minister, Mark Butler.
Read moreLong was formerly the first assistant secretary in Treasury’s social policy division and has previously held senior positions at the industry department and worked as an economist at the Productivity Commission.
The department already has functions for NDIS strategy and policy, governance and research.
Growth in NDIS spending was 10.3% last year, well above the federal government’s target rate of 8%, which Butler has described as “simply unsustainable” in the medium and long term.
Butler and the NDIS minister, Jenny McAllister, have indicated they are continuing to urgently try to bring spending growth down to between 5% and 6% annually.
NDIS changes are expected to be part of the May budget, which Albanese and the treasurer, Jim Chalmers, describe as Labor’s most ambitious yet, even as the war in Iran plays havoc with planning.
The NDIS was forecast to cost taxpayers $52bn this financial year, making it more expensive than big-ticket budget items including aged care and Medicare. On its current trajectory, the program could overtake spending on defence.
Without changes, NDIS spending had been due to soar past $63bn by 2028-29.
Butler’s office referred questions from Guardian Australia to the health department. A spokesperson said the taskforce was established at the same time as a deal to progress changes for children with autism and developmental delays, set to be provided through a new program called Thriving Kids.
“The taskforce is progressing work on delivering a sustainable NDIS for current and future generations of Australians with disability in line with the national cabinet commitment to target annual cost increases to 5 to 6%,” the spokesperson said.
Asked about possible savings from the NDIS this week, Albanese would not be drawn on the government’s plans.
The PM said the NDIS had “made an enormous difference to people’s lives and we need to remember that”.
“We want to make sure that it’s fit for purpose and that it’s sustainable and we’ll be working on the budget like we do on other items for that.”
Chalmers and the finance minister, Katy Gallagher, have put the public service on notice for significant cuts. Cabinet ministers and department and agency bosses have been asked to propose budget savings of as much as 5%, though cuts were not expected to be that steep.
The opposition leader, Angus Taylor, said this week the NDIS must use taxpayer money well, with dodgy operators and fraud drummed out.
“That means the NDIS needs to be run in a way where there isn’t fraud,” he told Sky News. “If there is fraud, and the signs are clear, strong signs that there has been fraud in the NDIS, we need to see it gone.”
As part of broader savings, the federal government and the states have agreed to spend $4bn on Thriving Kids, delivered through a 50/50 cost split. About $1.4bn of the federal contribution is expected to go directly to service delivery.
The program’s start date has been delayed to October.
