NDIS Reform Rules out Funding Prostitution, Tarot Card Readings, Crypto

The National Disability Insurance Scheme NDIS logo is seen at the head office in Canberra, June 22, 2022. (AAP Image/Mick Tsikas)

Prostitution, tarot card reading, and Japan trips have one thing in common—they will no longer be funded under the National Disability Insurance Scheme (NDIS).

This change came as part of Labor’s upcoming reforms to rein in the scheme, which is expected to spiral to $50 billion (US$33.7 billion) by 2025/26—higher than the annual Medicare bill.

The program’s minister, Bill Shorten, on July 7 revealed that some people have used the NDIS funding to claim prostitution, cryptocurrency, steam rooms, and a Japan trip for 20 people as part of their personal budget.

The inclusion of prostitution in the NDIS funding came following a court case in 2020, in which the ruling stated the NDIS Act “does not expressly exclude such activities from being funded supports.”

But the new legislation will explicitly rule these out, and NDIS recipient can only “get funding for things that are reasonable and necessary,” which will be decided by the head of the agency, he said.

“We will rule it out. It’s just not a sustainable proposition. It doesn’t pass the test, does it?” Mr. Shorten told Sky News on July 7.

But he added that most people are “doing the right thing.”

“Part of me sort of groans whenever I’ve got to go through some of the rubbish that some people are claiming, because that’s not what most people are doing. But the reality is that periodically, the AAT or the courts will roll the agency who make the decisions,” he said.

“We want to be able to belt and brace what you can spend money on.”

Mr. Shorten blamed the Coalition and the Greens for delaying the reforms, saying the actuary of the scheme has estimated this to cost taxpayers and NDIS recipients $1 billion.

“The Liberals, inexplicably, need another eight weeks after the 12 weeks we’ve already had to decide if we should be allowed to fund clairvoyants, tarot cards, cryptocurrency—stuff which was never intended by anyone,” he said.

We Tried To Fix It: Nationals MP

Nationals Party MP Barnaby Joyce argued the Coalition did make an effort to fix the issue before.

“I agree 100 percent that the sooner this is fixed the better, because … you don’t want to pay for someone to have a wild all night between the sheets on the taxpayer’s ticket, when it actually comes with a bill,” he told Sunrise on July 8.

“We’d be prepared to go further, really tighten it up because this is way out of what they call the financial envelope. It’s costing the taxpayer way too much.”

The reform will come under the Albanese government’s Getting the NDIS Back on Track bill, which would require participants to undergo revamped needs-based assessments to get on the scheme.

“The proposed amendments will mean some changes in the way money is allocated and spent by individuals in the NDIS, and clarification over whether someone will receive NDIS funding until the age of 65 or receive NDIS funding for some years of early intervention into their disability only,” the bill noted.

Treasurer Jim Chalmers said the federal government has engaged with the states and territories to make sure that the scheme can “deliver for the people it was designed to serve.”

He added that funding of the disability scheme will continue to grow but the state and federal governments, as well as everyone associated with the scheme, have a “responsibility to make sure that we’re getting value for money.”