‘Living not existing’ NDIS Opportunities & Challenges

“Disruptive Innovation” massive service system change Victorian NDIS rollout now announced Impending changes to HACC with transfer of younger people to NDIS NDIS will double investment in disability in Victoria, and expand provision of disability services to over 100,000 residents

“Disruptive Innovation” Transition to a nationally run scheme NDIS characterised by: Choice and Control for participants Emphasis on early intervention and lifetime approach to a person’s needs commitment to a social insurance approach, within the framework of a National Disability Strategy with its emphasis on community inclusion.

Disability Support System

Victorian NDIS rollout schedule On 16 September, the Cth, Vic and NSW agreed to full scheme roll-out arrangements. In Victoria transition arrangements will be: North East Melbourne from July 2016 Central Highlands from January 2017 Loddon from May 2017 Inner Gippsland, Ovens Murray and Western District from October 2017 Inner and Outer Eastern Melbourne from November 2017 Hume Moreland from March 2018 Southern Melbourne from September 2018 Brimbank Melton and Western Melbourne from October 2018 Goulburn, Mallee and Outer Gippsland from January 2019. Existing clients will progressively enter the scheme over a six-to-12 month period from the commencement of intake in each region. People on the Victorian Disability Support Register or the Early Childhood Intervention Services wait list who are regarded as ‘urgent’ cases will enter the scheme during the first two years of transition and ahead of schedule. The NDIA will streamline eligibility and intake for known clients of disability services. Local Area Coordinator functions will commence six months ahead of the scheduled phasing-in of clients. This is a welcome development in our view. In Victoria, by 2019-20 the NDIS will be providing supports to more than 100,000 participants, more than double the number currently receiving support under the Victorian disability system. Funding for Victorians with disability will be $5.1B per annum from that time, tripling the amount of funding for disability which is provided now.

Still awaiting … Victorian NDIS operational plan by December 2015 Clarity re accommodation issues by December 2015 Safeguards and QA Framework to be agreed by early 2016 Results of LAC tender ILC - Information Linkages & Capacity Building - commissioning details

Still awaiting … Greater clarity about how mental health services will fit within NDIS Roll out of a national disability workforce plan More detail of how the NDIA will address areas of thin markets, and the extent of market regulation

Coming Up Victorian government providing leadership, with new NDIS Taskforce NDS is rolling out an NDIS Transition program of information and capacity building Government program of information and transition support for communities

Challenges for local government Local governments face both challenges and opportunities, in regard to their roles as: Providers of direct services for people with disabilities Providers of ‘Information, Linkages and Capacity Building’ type services Local service coordination related roles

NDIS context for providers Organisational preparation Assessment of skills and capabilities and understanding of strengths and weaknesses Focus on strong local community connections Organisational efficiency improvements through financial modelling, cost control, and workplace innovation More say for participants greater diversity in services purchased greater flexibility in timing and type of supports less predicable patterns of demand Competition increasing clients as ‘customers’ & investment in relationship management processes New market entrants & some participants self managing supports cherry-picking of profitable services? Increased demand for services driving workforce growth and competition for high quality staff NDIA prices Lean pricing particularly loadings for supervision and non-client facing time L&D squeezed Funding in arrears after services have been delivered

NDIS Pricing Structure NDIA Efficient Price - standard Workforce Conversions Direct Support Staff Pay Rate $21.85 Annual Leave – including loading. $2.17 ($1.89 without loading). 20 days per FTE Personal Leave $0.43 5 days per FTE Long Service Leave Allowance $0.07 0.85 days per FTE Non-client facing rate (95% Client facing time). $1.29 13 days per FTE Total direct support staff rate. $25.82 WorkCover & super $3.49 Program mgt & admin $2.43 Corporate overhead + Profit Margin $4.97 Total costs $36.70 Prices are very lean. NDIA currently paying a transitional price, slightly above ‘an efficient price’. The pricing makes little allowance for overheads and non client facing time. Aligned to the Modern Award, which can make it difficult if using different industrial instruments.

For Service Providers NDIS presents large opportunities for growth, but hard decisions about the direction of growth. In making decisions, service providers need to consider: internal factors: their purpose, skills and capacity external factors: competition, workforce availability, consumer demand policy settings: prices, regulation, the NDIS implementation plan

ILC: Information, Linkages, Capacity Building ILC is for all people with a disability and their families, including but not limited to NDIS participants Currently, limited information about what and how ILC will be funded. 5 streams of services: Information, Linkages and Referrals Capacity building for mainstream services Community awareness and capacity building Individual capacity building Local area Coordination 5 proposed funding priority areas: Specialist or expert delivery Cohort focused delivery Multi-regional supports Remote/rural solutions Delivery by people with disability for people with disability

Local Communities Opportunity for local governments to play an active role in shaping NDIS transition within their communities Supporting smooth transition for: - People with disabilities and families; Workers; Service providers; Mainstream and other services Continuing to support social inclusion opportunities

The Scheme’s impact: one story ‘The Scheme has changed my life: it’s saved my marriage and my family. It’s providing my kids with the supports they need so they wake up happy in the morning, not throwing tantrums. I’ve been able to return to work and my wife has recently been able to as well. The way things are going, within 5 years, we expect to be able to start a business employing 10 people, knowing my children are going to be OK.’ Barwon participants’ Dad Sarah Fordyce Policy Manager NDS Victoria