Key Takeaways:
- The NDIS eligibility rates for people with psychosocial disabilities have decreased significantly, from 78-86% to 25% in 2024-25.
- A new psychosocial disability scheme, called the National Psychosocial Disability Program, is proposed to cater to 230,000 Australians.
- The program would include a new healthcare role, "support facilitator," to work one-on-one with people with psychosocial disabilities and provide $3000 funding per person to meet short-term needs.
- The program aims to help people recover and prevent them from needing more intensive disability support, addressing a major flaw in the NDIS model.
- The proposed program would cost $2.6 billion in 2030-31, equivalent to about one-quarter of projected NDIS payments to people with a primary psychosocial disability.
Introduction to the Issue
The National Disability Insurance Scheme (NDIS) has been facing significant challenges in providing support to people with psychosocial disabilities. The eligibility rates for these individuals have plummeted from 78-86% in the scheme’s first three years to a mere 25% in 2024-25. This has resulted in many people with moderate support needs being left in a state of limbo, unable to access the necessary support and services. The Australian mental health and disability system is plagued by significant inequities, which have led to a lack of adequate support for those who need it most.
The Proposed Solution
To address this issue, the Grattan Report recommends the establishment of a new psychosocial disability scheme, called the National Psychosocial Disability Program. This program would cater to approximately 230,000 Australians and provide a more comprehensive and recovery-oriented approach to supporting individuals with psychosocial disabilities. The program would introduce a new healthcare role, known as "support facilitator," who would work one-on-one with about 20 people at a time, providing $3000 funding per person to meet short-term needs such as specialist medical assessments or one-off cleaning services. The support facilitator would also guide individuals towards community participation programs, peer support, and recovery colleges.
The Role of Support Facilitators
The support facilitator role is central to the proposed program, as it would provide a personalized and flexible approach to supporting individuals with psychosocial disabilities. These health workers would be empowered to distribute funding to meet the unique needs of each individual, rather than being constrained by rigid funding models. The support facilitator would work closely with existing Primary Health Networks to coordinate services, which would be offered for three years at a time, with the flexibility to fluctuate based on need. This approach would enable individuals to receive the support they need to recover and prevent them from requiring more intensive disability support in the future.
Addressing the Flaws of the NDIS Model
One of the major flaws of the NDIS model is that it requires individuals with mental illnesses to deteriorate before they can receive support, and they lose access to support if they recover. The proposed National Psychosocial Disability Program aims to address this issue by providing a recovery-oriented approach that focuses on preventing the need for more intensive disability support. By redirecting approximately $2.2 billion per year, equivalent to about one-quarter of projected NDIS payments to people with a primary psychosocial disability, the program could provide ambitious and comprehensive support to those who need it most.
Progress and Challenges
Despite the promising proposal, progress on the new psychosocial disability scheme has stalled due to overlapping responsibilities, contested roles, and fiscal constraints. Health and Disability Minister Mark Butler has acknowledged the challenges, but remains committed to finding a solution. The federal government has already taken over the design of a new children’s disability system, called Thriving Kids, but the new psychosocial disability scheme has not progressed as premiers remain torn over the budget commitment. Butler has stated that negotiations are ongoing and productive, with another full-day negotiation meeting scheduled, and all governments are working hard to get it right in the interests of citizens.
Conclusion and Future Directions
In conclusion, the proposed National Psychosocial Disability Program offers a promising solution to the significant inequities in Australia’s mental health and disability system. By introducing a new healthcare role, support facilitator, and providing a recovery-oriented approach, the program could help individuals with psychosocial disabilities recover and prevent them from needing more intensive disability support. While progress has been slow, the commitment from governments to find a solution is evident, and it is essential that they continue to work together to address the flaws of the NDIS model and provide comprehensive support to those who need it most.

