Frank Sheehan from Orange Community Supports talks NDIS price rise

Frank Sheehan is the manager of Orange Community Supports which provides day-to-day assistance to those living with a disability.

While he welcomed the increase, he said there were still issues that needed addressing.

"There is a lack of information being provided by the National Disability Insurance Agency to both participants within the scheme and to those who are providing services," he said.

"We get very little information from the NDIA on a regular basis."

He added that there was a "major under-utilisation" of funding due to a lack of disability support workers within the industry.

"One of the biggest reasons is a lack of staffing from all organisations, be they independent, for-profit organisations like myself or not-for-profit providers," he said.

"There's simply not enough people coming into the workplace, which leads to a gap in providing services to people who need them.

"That's probably the biggest concern that I have because that has the biggest impact on the participants in the scheme. If people are unable to find adequate services at all times, it means they can't fully utilise the funding they have available to spend."

One of the main reasons he gave for a shortage of staff was that the industry as a whole relies on either part-time or casual employees, rather than permanent full-time.

To receive NDIS funding, a person with a disability or their carer has to put in an application which can take around three months to process.

If they are given the green light, the individual will have a planning meeting with their area coordinator within NDIA where an NDIS plan is formulated. That plan attaches a monetary value to supporting a participant in the community.

From there, the participant or carer will seek out organisations and people within the community for that support. As the services are provided, that money is taken out of their NDIS plan.

A statement from NDIS Minister Bill Shorten said the increase took into account a range of factors, including the cost of providing support during the pandemic, investment in quality and safeguards, the Fair Work Commission's decision to raise the minimum wage 5.2 per cent and the introduction of new shift allowances.

Participant budgets will automatically increase to account for the new limits, the statement said.

The minister's statement said the changes had already been factored into the scheme's cost projections.

But Mr Sheehan said the plan was vague and could have a negative impact on the industry.

"I've got wages and employees to pay, as does every other organisation," he said.

"From our perspective, a pay rise is fantastic so that I can try and pass that on to my employees, but it's got to be balanced with how much that's going to impact a participant's ability to have money to spend from their NDIS plans. It's about trying to strike a balance.

"We don't know the direction the ALP is taking, parliament hasn't said that. We haven't' had Bill Shorten turn around and give any detail about what he's proposing and that detail has yet to hit parliament."

The NDIS publishes a new price guide ahead of the start of each financial year. It sets the maximum amount that can be charged for support and the increase will come into effect from July 1.

The scheme is forecast to cost almost $30 billion this financial year, growing to $44.5 billion in 2025-26.

As much as $514 million will also be made available to registered providers to help cover "significant" costs of keeping participants safe, including during the COVID-19 pandemic, following the release of the scheme's latest annual price review. That money pool will be made available to providers who support participants with daily living and community activities.

"Providers should be commended for improving rostering systems and reforming their business models to prioritise high quality support for participants and retain workers to reduce future cost by improving outcomes for participants," Mr Shorten said.

"This price review finally recognises the true cost of continuity of support, keeping participants safe and improving systems to drive productivity."

Mr Sheehan hoped that he and other NDIS service providers would soon get more detail about the funding plans.

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