The outcome of the NDIA’s Annual Pricing Review is distressing and disappointing, and raises major questions about the future of quality disability service provision. In the face of comprehensive data on the dire situation for quality providers and the fragility of the sector, particularly in Victoria, the Review’s 3.19 per cent rise in participant pricing for 2024–25 for supports from disability support workers falls far short of what the sector needs to cover rising operational costs and undertake appropriate training, supervision and onboarding. 

Yet again, the prices set by the NDIA go nowhere near to covering increases in the costs of running a well-managed service. Compensation for wage increases is not enough when providers have seen costs rise in every other area of operations, such as utilities, rent, insurance and workers compensation. 

I am particularly concerned about the impact on those with more complex needs. I am hearing from numerous members who are reviewing their ability to continue support to such participants. Some are reconsidering whether to offer services to new participants with complex needs. I am aware that in the political discourse, particularly around provider registration, the voices of people with cognitive disability or with complex psychosocial needs are not prominent. The latest pricing appears to reinforce this bias.   

At our recent NDS Vic Conference, we heard from Professor Christine Bigby about the importance of active support and practice leadership in the delivery of quality services to people with intellectual disability. Yet this pricing decision undermines organisations trying to invest in the training and supervision that is critical to this approach. 

NDS has argued that the only way forward is pricing that is independent, transparent, fair and accountable. The federal budget commitment to draw on the expertise of the Independent Health and Aged Care Pricing Authority was a good start. But they must build on that to develop a better approach to setting NDIS prices, working with people with disability and the sector for transparent and independent NDIS pricing. We all want to see pricing that provides incentives for quality services, delivered by employers offering safe work with appropriate training and supervision. 

NDS Workforce Census 

NDS’s latest annual Workforce Census Report shows that, having stabilised in 2022, the sector’s workforce recruitment and retention problems have not eased. Providers face serious workforce pressures as they enter a long period of NDIS reform. 

Disability providers continue to depend heavily on casual support workers, who make up 37 per cent of the workforce. This reliance comes with a significant downside — high turnover rates. This year, turnover has increased to 24 per cent for casual staff and 16 per cent for permanent staff, resulting in nearly 16,500 employees cycling through the sector. Such instability affects the quality and continuity of care provided to people with disability. 

The Workforce Census estimates that staff turnover alone could be costing providers over $80 million, a conservative figure, highlighting the dire financial straits many face. Training, supervision and retention of highly skilled workers are underfunded in the model. The best use of funding to the scheme is ensuring that investments translate into high-quality services and value for government spending.  

SDA and restrictive practices changes 

Just a reminder that sections of the Victorian Disability and Social Services Regulation Amendment Act 2023 came into effect on 1 July. These are of particular interest for those providing SDA services and restrictive practices. This month, we held three information sessions covering all sections of the Act. You can watch the session recordings and read factsheets, summaries and analysis on our dedicated webpage.  

And finally, I would like to thank everyone who attended our Victorian State Conference on 19 June. It was great to see so many of you in person again, and the presenters and, in particular, the Provider Spotlights, gave insight into the state of the sector, as well as new and innovative approaches.