NATIONAL DISABILITY SERVICES VICTORIA

STATE BUDGET SUBMISSION

2017 - 2018

Executive Summary

National Disability Services (NDS) is the peak body in Victoriaand Australia for non-government disability service providers. NDS has more than 200 members in Victoria and more than 1,100members nationally. NDS provides information and networking opportunities to its members and policy advice to State, Territory and Commonwealth governments. We have a diverse and vibrant membership, comprised of small, medium and larger service providers supporting thousands of people with disability. Our members collectively provide the full range of disability services - from accommodation support, respite and therapy to community access and employment. Our members employ over 8,000 people in Victoria alone and are supported by countless volunteers in delivering vital services to Victorians with disability.

NDS is committed to improving the disability service system to ensure it better supports people with disability, families and their carers, and to building a more inclusive community. NDS has advocated strongly over a number of years for the introduction of a National Disability Insurance Scheme (NDIS) and is now supporting service providers across Victoria as they transition to the new Scheme.

Summary of broad priority areas and key recommendations:

Continued focus, commitment and investment required to realise the potential of NDIS and achieve the aims of the National Disability Strategy

Recommendation 1:Increase disability services investment to $2.5 billion per year by 2019-20 in line with the NDIS BilateralAgreement with the Commonwealth Government.

Recommendation 2: Increase funding for implementation of the 2017-2020 State Disability Plan.

Recommendation 3: Continue long term funding of existing Information, Linkages and Capacity (ILC) type services which may not fit the NDIS funding model, yet make a valuable contribution to Victoria’s social capital.

Recommendation 4: In conjunction with the National Disability Insurance Agency (NDIA) and the sector, co-design and implement a strategy to mitigate the risk of disability market failure in identified areas of ‘thin’ markets.

Build a strong not for profit disability sector

Recommendation 5: Continue the Victorian Government’s investment in sector transition by committing to future funding of $5M per annum for each financial year from 2017-18 through to 2019-20, to enable NDS to assist not for profit service providers to successfully transition to NDIS.

Recommendation 6:Provide an indexation rate for funded disability services of 3.5% during the NDIS transition period.

Recommendation 7: Create a structural adjustment fund to assist not for profit disability services to transition their employees to industrial arrangements in line with the Modern Award provisions which underpin NDIS prices.

Recommendation 8: Resource appropriately the smooth and adequately funded transition of the current government disability workforce and capital assets to the not for profit sector.

Recommendation 9:Invest $500,000to enable NDS to continue development and promotion of the successful Zero Tolerance program targeting disability abuse.

Recommendation 10: Under Victoria’s Social Enterprise Strategy initiative, fund the establishment of a Disability Enterprise Procurement Program for $200,000pa over three years.

Develop and fund a Disability Housing Strategy

Recommendation 11:Develop and fund a long term targeted Disability Housing Strategy within the broader Victorian Housing Strategy to address the housing needs of people with disabilities within the NDIS context at scale.

By funding and implementing these policies, Victoria will be well-positioned to support a successful transition to the NDIS; to ensure that, over time, people with disability, their families and carers are able to access high quality specialist and mainstream services; and that not for profit (NFP) disability service providers will continue play a key role in a vibrant, sustainable and outcomes-focused community sector.

Preparing for Year Two of full scheme NDIS Rollout: an overview

NDIS is creating immense disruptive change for Victoria’s disability services sector

Victoria has embarked on rollout of a potentially world class disability services system, the National Disability Insurance Scheme (NDIS). The Schemeoffers the promise of delivering substantially moreservices to people with disability, services that better suit theirneedsand which are provided in flexible, responsive and innovative ways. The Scheme’s focus on community and economic engagement foreshadows NDIS participants being able to participate more fully in community and economic life. Insurance principles underpinning the NDIS will support a more prudent and targeted allocation of public resources based on a long-term (lifetime) economic view. Investment in early intervention and funding growth will ensure that appropriate specialist disability support will complement and enhance independence and natural supports, whilst reducing overall Scheme costs. These developments along with the move to a more competitive, market-based approach, driven by the individual choices of people with disability, are creating immense disruption for disability services and driving wholesale transformation.

Early rollout of the scheme has been bumpy, and dogged with significant problems relating to the NDISmyplace portal, under-developed systems and new and sometimes poor quality planning processes. Despite these hurdles, the Scheme continues to offer real hope of better services and better lives for people with disability. Moving forward will require the continued commitment and sustained energy of all key players in this momentous change, who will need to continue working together to address emerging issues and realise the potential of the Scheme. This is particularly the case, given that 2017-18 and 2018-19 will see 7 and then 5 new NDIS roll-out sites, in addition to 4 roll-out sites which will have been established by the end of 2016-17.

A strong and diverse not for profit disability services sector will support choice and control for Victorians with disability

NDIS poses significant risks as well as opportunities for existing not for profit (NFPs) services which, along with government services, dominate service provision at present. Existing NFP services represent a repository of deep expertise, experience, employers of a skilled and qualified workforce, and valuable contributors of social capital to our community.This has been built on the back of long term Victoria government funding and leadership, in addition to local philanthropy and business acumen. Maintenance of a strong, viable and diverse not for profit disability sectorwill not only provide people with disability choice, but contribute to the diversity and richness of our social capital and connections across the state, benefiting the whole Victorian community.

NFP disability organisations are now facing immense challenges to achieve financial viability within a competitive market, with lean NDIS prices and demands for new skills and processes and management agility.

The Government’s commitment to investment in the Sector Transition Fund therefore continues to be absolutely imperative to support transition. The Victorian government needs to build on this laudable commitment to a strong NFP sector through strategic use of other levers within its control. For example, decisions on the details of any future tender processes relating to outsourcing of government service provision can, for example, place weight on the creation of social capital such as volunteer networks and deep community connections.

The government can also provide practical support for the NFP disabilitysector through its funding for the sector and related arrangements. NDS understands that direct Victoriangovernment funding will continue for many organisations through the NDIS rollout period, and possibly beyond. A commitment to adequate indexation of 3.5% of State funded disability services will enable services to meet inflation costs.

A commitment to ‘lighter touch’ regulation, as demonstrated recently by the NSW government in its approach to the acquittal of funding by registered providers, will also allow services to focus their energies into assisting smoothtransition for clients. Negotiation of continued VMIA insurance coverage will further assist organisations at this time of challenge and disruptive change. Funding and promotion of the Zero Tolerance program tackling disability abuse with a human rights based approach will also strengthen the Victorian sector.

Continuing Responsibility of the Victorian Government

NDS has welcomed the leadership demonstrated by the Victorian government during the first year of rollout. We have been actively supportive of, and engaged in, the consultative framework established by the Department of Premier and Cabinet, under the leadership of Ministers Foleyand Jennings, to oversee Victorian transition. Such initiatives need to continue during the next 2 financial years. The Victorian Government has an ongoing responsibility to all Victorians with a disability, including those eligible to become NDIS participants and those reliant on the NDIA’s Information Linkages and Capacity building funding stream (not yet implemented in Victoria) and mainstream services.

The development of the new disability system under the NDIS is having major repercussions, and is impacting on an array of mainstream services, creating gaps and disjuncts at the interface with theseservices. This is apparent in relation to education, health, justice, transport, housing and all community services. In the past, state funded disability services have sometimes extended beyond their traditional remit, and provided services at these interfaces. This is not occurring under the NDIS, which is clear as to the limits of its responsibility for disability related supports. In order to ensure people do not ‘fall between the gaps’ between service systems, there needs to be active policy work within and across all mainstream services, potentially supported by the provision of additional funding, to ensure smooth connections between the systems. NDS is happy to contribute to such work, whichwill require significant government leadership and oversight.

The Victorian State Disability Plan2017-20 outlines ambitious but achievable aims for creation of an inclusive community. NDS is keen to see the governance structure for the Plan’s implementation includingoversight from a Central Agency to ensure that all elements of government, across infrastructure, planning, transport, health, education and so on, are directed to step up to the goals articulated in the plan. Only with cross-government commitment to implementation will the Plan be successful in creating an inclusive community.

Ongoing responsibility for disability housing

A major area of continuing responsibility for the Victorian government lies in the provision of housing for people with disabilities. Many individuals experiencing significant disability and supported by the NDIS are likely to have low incomes and be unable to afford or access affordable housing in the private sector, particularly given the dire shortages of such housing across the State. The NDIS will assist a portion of high need participants with an SDA allocation within their packages; however this will only be included in the plans of approximately 6% of participants. This leaves the other 94% of NDIS participants looking to social housing and other forms of affordable housing to meet their needs.

The SDA funding offers government a potentially one off opportunity to redevelop some of the existing traditional community residential units located on large blocks close to local amenities and transport. Some of these properties could be developed into mixed units (perhaps with a mix of social and privately owned units) that support more contemporary models of support provision and promote greater social integration. The recent welcome announcements by the Victorian government of additional funds for social housing could perhaps augment such developments.

The government has access to a range of levers to address the shortage of disability housing, including stamp duty exemptions, planning approvalsand/or initiation of public private development partnerships. Key to addressing this issue will be development of a long term plan for disability housing in Victoria, within the context of the new Victorian Housing Strategy, Plan Melbourne 2050 and funding commitments, with consideration of a range of innovative funding models which result in properties and homes which reflect contemporary models of disability support and the NDIS context.

This Budget Submission outlines a number of recommendations from NDS which we consider will address the priority needs of people with disabilities and not for profit disability service providers in this time of NDIS transition.

Priority 1: Continued focus, commitment and investment required to realise the potential of NDIS and achieve the aims of the National Disability Strategy

The NDIS represents a tremendous opportunity to improve the quality of life of Victorians with severe and permanent disability – however, even after full scheme transition is complete, the Victorian Government will have an ongoing role to ensure that Victoria is an inclusive community for those one in five Victorians with disability. Melbourne is often lauded as the world's most liveable city, however many Victorians with disability have neither shared in this high standard of living nor been able to participate fully in our community, economically or socially.

NDS has welcomed the Victorian government’s strong commitment to the NDIS. The NDIS funding model, with its focus on choice and control, insurance principles, market competition and individualised funding packages is transforming the lives of many people with a disability. NDIS will, over time, eliminate the waiting lists, extreme resource constraints and deep inequities which have characterised the existing disability service system. Once the NDIS has been fully rolled out, 105,000 Victorians with disability will receive NDIS funded supports, including 27,000 more Victorians than are currently receiving support.

Victorian contribution to NDIS Funding

A critical element of this support relates to funding of NDIS. Under the Bilateral Agreement between the Commonwealth and Victoria, $5.1 billion p.a. is to be allocated to disability services from 2019-20 onwards. NDS recommends the State Government abide by its bi-lateral commitment, and increase disability funding to $2.5 billion per year by 2019-20.

Recommendation 1: Increase disability services investment to $2.5 billion per year by 2019-20 in line with the NDIS agreement with the Commonwealth Government

National Disability Strategy and Victorian State Disability Plan

The NDIS alone will not transform the lives of people with disability. Rather achievement of the National Disability Strategy 2010-20[i], endorsed by all Australian Governments, provides a comprehensive framework for achieving an inclusive nation. Achievement of outcomes under this Strategy is contingent on, and essential for, successful implementation of the NDIS. Inclusive transport, technology, justice, housing, health and education systems are imperative for a viable NDIS that has the capacity to increase the social and economic participation of people with disability.

NDS has welcomed the release of the State Disability Plan 2017 - 2020 (SDP)[ii]. The Plan sets out an array of laudable and wide ranging commitments which will potentially deliver on the vision outlined in the National Disability Strategy and "support people with a disability to live satisfying everyday lives." It includes an emphasis on combatting discrimination, housing and promotion of universal design, improving access to public transport, investment in advocacy and inclusive schools, and thepromotion of employment of people with disabilities.

The challenge will be ensuring sustained investment and effective implementation of the many actions outlined in the Plan. The initial investment of $3.3M will need to be built on over the next four years to drive deep structural and program changes across the infrastructure and systems of our society. This work is particularly critical as disability services are transformed to meet the challenges of NDIS rollout.

A further challenge will be ensuring the governance of the Plan is directed from the highest levels of government, with the force to drive change across departments and responsibilities which lie beyond the remit of DHHS.

The NDS Submission to the State Plan outlined a number of specific initiatives NDS has identified as critical to creation of an inclusive community. It is recommended that strong central leadership and appropriate funding be allocated to implementation of each of these, under the framework of the State Plan implementation.

Key initiatives identified by NDS in its State Plan submission included:

  • Community Education to tackle discrimination: A community education campaign to tackle disability discrimination.
  • Strong, Independent disability advocacy: Funding to ensure that strong, independent advocacy organisations (with a distinction between advocacy and carer support groups) are able to assist and support all Victorians with disability, whether or not they are NDIS participants. This would include a particular focus on supporting people with intellectual disability to build a network of self-advocacy groups across the State.
  • Accessible infrastructure and buildings: A requirement that all new community infrastructure meet contemporary Australian standards for access; that all new commercial, retail and residential construction comply with minimum standards for universal design; and adoption of universal design principles across new housing stock;
  • Funding of a substantial increase in Changing Places accessible toilets program to ensure that social, recreational and community activities are more accessible for Victorians with disabilities.
  • Development of a Disability Housing Strategy: including plans to facilitate new disability housing development through direct funding for new housing, the provision of Government-owned land towards new developments, and use of the planning scheme to require developers to ensure a proportion of new housing is available for people with a disability.
  • Transport:require public transport infrastructure to be compliant with the Disability Discrimination Act; and extend the taxi subsidy scheme to ride sharing schemes.
  • Legal and citizenship rights: Increase funding of Legal Aid in recognition of the increased representation of people with a disability in the legal system; and target any increased funding for prisons to better meet the needs of the many prisoners with disability.
  • Employment:implement relevant recommendations of the AHRC’s Willing to Work Inquiry[iii]; implement a social procurement program to support the employment of people with disabilities; and require all Victorian government departments to work towards meeting diversity targets which require at least doubling of direct employment of people with disabilities into the public service.
Recommendation 2: Increase funding for implementation of the 2017-2020 State Disability Plan

Targeted strategies to address emerging concerns with NDIS rollout

The NDIS Implementation Taskforce and its various working groups, and the allocation of NDIS responsibilities to various Victorian Government departments are all playing valuable roles in identifying issues and strategies to address emerging concerns around the NDIS rollout.

There are, however, elements of the NDIS model which have implications in Victoria and which will require Victoriangovernment action and investment if NDIS transition is tobe successful in the longer term.