In August, the Prime Minister released the Productivity Commission’s final report on Disability Care and Support – the most significant report on the disability services system in decades. The Productivity Commission (PC) found that the current system is unfair, underfunded, fragmented and provides too little choice to people with disability and their families. The system requires fundamental reform. The report recommends the establishment of a National Disability Insurance Scheme (NDIS), which would fund support services for around 410,000 Australians with significant disability and be governed by a Commonwealth statutory authority – the National Disability Insurance Agency (NDIA).

The system proposed would be nationally consistent, far better resourced than the current system and give increased choice to people with disability and their families. It would effectively be an insurance scheme for all Australians, in the event that individuals or their family members acquire or a born with a significant disability.

Funding for the new scheme would need to be about double the current outlay for the disability sector, increasing from around $7 billion annually to almost $14 billion. The NDIS would not be means tested and co-payments would not apply. Importantly, however, the Productivity Commission concludes from its detailed economic analysis that the benefits of the NDIS ‘would significantly outweigh the costs’ and that ‘the funding of the scheme is feasible and manageable’.

The PC recommends that the scheme be rolled out in stages, beginning in mid-2014 in selected areas (regional launch sites). By 2015-16, it should cover all regions in Australia for the highest priority groups and be implemented in its entirety by mid-2019.

The NDIS would be complemented by a no-fault National Injury Insurance Scheme (NIIS) which would provide fully-funded care and support for all cases of catastrophic injury.

While there are important details still to be negotiated and determined, the reform vision set out in the Productivity Commission’s report has received the endorsement of the Federal Government and the Council of Australian Governments, which has established a Select Council for Disability Reform consisting of the Treasurers and Disability Ministers from all jurisdictions. The NDIS has also received support from the Federal Opposition and the Independents.

Importantly, there is public support for an NDIS, with polls indicating the support of almost two-thirds of the population. A successful public campaign has run in parallel with the development of the PC report. Years of frustration with the disability services system (given voice through several national reports) led to the formation of an alliance between the Australian Federation of Disability Organisations, Carers Australia and National Disability Services—called the National Disability and Carers Alliance. This Alliance initiated a major campaign—Every Australian Counts—to improve how people with disability are supported across Australia.

Seventy-five thousand people have pledged their support for the campaign and more than 1,000 people attended a conference in March about the NDIS organised by the Alliance. A high point this year was the Disabilities, with more than 40,000 people – including MPs – attending 900 events around Australia. A program of visiting MPs around the country in their electoral offices has been very successful. Presenting them with a positive message – that they could make a difference to the lives of local constituents living with disability and their families by supporting an NDIS – distinguished this campaign form many others.

While the campaign for an NDIS has achieved much, there is a steep road ahead to ensure that the disability sector is prepared for transformational change and that all governments make the commitments required to implement the NDIS successfully.

The National Disability Strategy

The NDIS can be thought of as the central pillar of the National Disability Strategy – a ten-year, whole-of-government plan that aims to improve the quality of life of Australians with disability, their families and carers. It represents a commitment by all levels of government to give practical effect to the rights and social inclusion articulated in the United Nations Convention on the Rights of Persons with Disabilities, which Australia ratified in 2008. Never before has there been a plan such as the National Disability Strategy which has been signed by the heads of all Australian governments.

The Strategy was formally endorsed by COAG on 13 February 2011. This high-level endorsement should encourage government agencies to give serious consideration to how their policies, procedures and practices can be responsive to disability issues.

The strategy identifies six key policy areas:

• Inclusive and accessible communities
• Rights protection, justice and legislation
• Economic security
• Personal and community support
• Learning and skills
• Health and wellbeing

An implementation plan will be presented to COAG in early 2012.

The Government’s Workforce Participation Agenda

The Australian Government is focused on enhancing national productivity through the increased employment of people of workforce age. This group includes a significant number of people in receipt of the Disability Support Pension (DSP) who are not actively seeking employment, but may want to participate in the workforce if given the opportunity and support.

There is a social and economic imperative to increase the employment rate of people with disability. Their labour force participation rate is 29 percentage points lower than for people without disability – a figure that has remained unchanged for almost a decade. Underemployment remains a key problem, with around one-third of employees with disability who work less than 15 hours a week indicating they would like to work more hours.

There are currently over 800,000 people in receipt of the DSP and the number of recipients is increasing at its greatest rate since 2003. The DSP is almost $100 per week higher than Newstart Allowance and has less stringent work activity tests. Less than 9 percent of DSP recipients report earnings from employment and there are financial disincentives to DSP recipients seeking employment. These disincentives include high marginal tax rates, loss of benefit income and loss of the Pensioner Concession Card.

It represents a poor use of Australia’s human capital for so many people of working age to be disengaged from the workforce. While there is no simple or quick policy solution (many OECD countries are grappling with similar issues), there are steps which could be taken to increase workforce participation of people with disability.

The Australian Government could set an example in its employment practices. But the employment rate of people with disability in the Australian Public Service (APS) has fallen steadily over the past decade. The Public Service Commission is looking at ways of trying to reverse this trend. APS agencies can now by-pass the usual recruitment and selection process – which can be insurmountable for some job seekers with disability – if the job seeker is supported by a Disability Employment Service. However, in 2010 only 36 percent of APS agencies had a relationship with an organisation which specialises in disability employment support. All government agencies should establish such a relationship.

Disability Employment Services (DES)

Disability Employment Services are funded by DEEWR to provide placement and support services to people with disability seeking employment in the mainstream labour market. Both public and private sector organisations can utilise the services of these specialist providers which are able to offer advice, incentives and other types of assistance to employers.

DES is a mainstream employment program serving a wide-range of jobseekers and employees. The program supports around 45,000 people in jobs and is assisting around 95,000 people to find work.

The program has two main streams, one assisting jobseekers with disability or other conditions who need the assistance of a DES, but would be unlikely to need ongoing workplace support; and the other for people with a permanent disability who need ongoing workplace support.

Employers can access useful assistance through DES providers including financial support and incentives such as workplace modifications, assistive technology, mental health and first aid training, disability and deafness awareness training, Auslan interpreting and wage subsidies.

Employer surveys confirm that workers with disability are considered to be reliable and loyal employees. Employers that use DES providers also express high levels of satisfaction with the services they provide.

Australian Disability Enterprises

Australian Disability Enterprises (ADEs) are businesses which employ people with severe disability (supported employees) who are generally not suited to working in mainstream businesses. There are over 200 organisations funded by FaHCSIA to provide supported employment for around 20,000 people with disability in more than 600 ADEs across the country. There is currently a limit (or cap) on the number of funded places in ADEs. In order to increase employment opportunities for people with severe disability, this cap should ideally be lifted.

Supported employees are paid pro-rata wages based on the National minimum wage as set out in the Supported Employment Services Award 2010. Supported employees undergo a transparent assessment to determine their productivity and skills, which also determines their pro-rata wage rate. The assessments are conducted using one of 30 recognised wage assessment tools identified in the Award. Over 95 per cent of supported employees also receive the Disability Support Pension.

The Australian Government has recognised the unique and valuable role of ADEs by implementing a tendering exemption in the Commonwealth Procurement Guidelines. Commonwealth agencies should seek to utilise this exemption where possible as ADEs provide a wide range of quality goods and services at a competitive price. By utilising the exemption, agencies can bypass the need to conduct a tender exercise and support the employment of people with disability. Most of the State and Territory governments have implemented similar tendering exemptions.

The business activities of ADEs are tailored to allow for the skills and support needs of their employees. Many of these business activities are labour intensive and, in most cases, would be fully automated in a mainstream business. Many ADEs are involved in the production and distribution of some of the Australia’s most well-known goods including products from Lindt, Johnson & Johnson, Coca Cola Amatil, Qantas, Bluescope Steel, Woolworths, Coles and JB Hi Fi.

The details of every ADE in the country can be accessed via the website: www.australiandisabilityenterprises.com.au.

Ken Baker

Chief Executive

National Disability Services

NDS is the national peak body for disability services, representing around 700 non-government organisations across Australia.

Dr Ken Baker is the Chief Executive of National Disability Services (NDS), the peak association for non-government disability services. In that role he provides  information, representation and policy advice.

He has worked in areas of social policy and public affairs for more than 20 years and received a Centenary Medal for contributing to disability services development. He is a member of the National People with Disabilities and Carer Council, the National Mental Health and Disability Strategy Advisory Committee and the National Disability Workforce Reference Group. He lives in Canberra.

With a membership of 700 non-government organisations, NDS promotes and improves services which support people with disability to participate in all domains of life.