Australia is failing more than 130,000 people with significant psychosocial disability – despite spending billions every year on the NDIS – a new Grattan Institute report finds.
Bridging the gap: Meeting the needs of Australians with psychosocial disability reveals that last year the NDIS provided nearly $6 billion to support about 66,000 people with psychosocial disability, but another 130,000 adults with the greatest needs got nothing – from the NDIS or the mental health system.
This gap is fuelling a growing problem. People without adequate support are more likely to be homeless, admitted to hospital, or have their needs escalate – adding pressure to systems already under strain.
The report shows that the gap can be closed without spending any more public money – by redirecting some NDIS funds to ensure Australians can get help whether they are in the scheme or not, and no matter where they live.
‘If you have psychosocial needs but you’ve been deemed ineligible for the NDIS, your access to support is a postcode lottery,’ says report lead author and Grattan Institute Disability Program Director Sam Bennett.
‘The services you can get to give you the best chance of a better life are patchy and underfunded – or non-existent.
‘Rebalancing the system so there are stronger recovery-oriented supports available inside and outside the NDIS would transform the lives of Australians with psychosocial disability and make better use of existing funds.
‘Our proposal is for an integrated system of psychosocial support – with the NDIS working alongside a broader range of non-NDIS services.’
The report recommends a four-pronged plan to bridge the current gap in support:
- Establish a new National Psychosocial Disability Program, outside the NDIS but funded within existing contributions to the scheme, to provide support for a further 130,000 adults with the most significant needs.
- Deliver consistent services nationwide, expanding access to individual support facilitation and a broader range of recovery-oriented psychosocial supports.
- Direct Primary Health Networks to lead regional planning, commissioning, and coordination, balancing national consistency with local flexibility.
- Make the federal, state, and territory governments jointly responsible – and accountable – for designing and delivering the program.
‘Together, these reforms would create a fairer and more effective system to better meet the needs of Australians with psychosocial disability – and all within the current NDIS budget envelope,’ says Dr Bennett.
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