1. ‘Living not existing’ NDIS Opportunities & Challenges

2. “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

3. “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.

4. Disability Support System

5. 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 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.

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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.

12. 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

13. 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

14. 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

15. 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