‘Rip Band-Aid off’: Shorten’s warning to states

NDIS Minister Bill Shorten says that while he is willing to compromise with state and territory governments on achieving reform to the National Disability Insurance Scheme, he is prepared to “rip the Band-Aid off” and force them into providing “less-intensive” foundational supports.

While giving his address at the National Press Club on Tuesday, Mr Shorten conceded states had yet to support proposed changes to the scheme; however, he said negotiations had been “fruitful”.

“I will do everything I can to make the states feel they can support it, which they don’t at this point,” he said.

“The states’ fundamental fear is that somehow they’re going to get lumped with (many people) on the NDIS, (that’s) not right.

“Our legislation will, I think, decrease the cost curve, which is great, and I think it’ll tighten up things which need tightening up.”

However, he warned that if needed, the government would “rip the Band-Aid off” and force states to take on the extra responsibilities.

“I will walk a long way to try and bring them on-board, but at the end of the day, people with disability are more important than any particular level of government, so if we have to rip the Band-Aid off, we will,” he said.

As the Commonwealth is attempting to curb the scheme’s ballooning costs by $14.4bn over four years, and rein in its growth to $1.5bn a year, states will be required to provide more services, known as “foundational support”.

However, state and territory jurisdictions have issued concerns they haven’t been given enough detail around what these services will include and the funding splits between the states and federal government.

While Mr Shorten refused to say which jurisdictions supported, or didn’t support, the NDIS reforms, he said he was open to meeting his state counterparts “halfway”.

“We are determined to reform the scheme. We get one chance at this. This is a sliding door moment of politics,” he said.

“I will do just about everything to try and convince the states to like what we’re doing, and I will compromise.”

As Mr Shorten worked to allay bubbling discontent among states and territories, the legislation to push through the reforms has stalled in the Senate, where the government lacks a majority.

While the Greens have largely opposed the Bill in its current form, Mr Shorten said the government was holding “constructive” negotiations with the Coalition and would “carefully” work to include some proposed amendments.

Speaking at the National Press Club on Tuesday, Mr Shorten also announced a new “gold-standard” government digital ID program, Trust Exchange (TEx), due to be launched by the end of the year.

The program will allow people to store their personal documents and credentials on their myGov wallet and share that information through a QR code.

Mr Shorten also flagged he wanted to work with his state and territory colleagues to allow federal credentials (like Medicare, and Commonwealth concession cards) to be stored in state-based wallets, like Service NSW.

“Government services need to deliver for all Australians to enhance trust, with reliability, capability, integrity and, of course, compassion,” he said.

“Understanding someone’s eligibility for the disability support pension can’t be reduced to something as uncomplicated as ordering from Amazon, but we need to make convenience and ease an ambition in any service.”