In April, the federal government announced a major reset of the National Disability Insurance Scheme (NDIS). According to the Mental Health Coordinating Council (MHCC), the reform package includes clearer eligibility requirements, a shift away from diagnosis-based access, and functional-capacity assessments. These changes will have significant implications for how people with disability, including those with psychosocial disability, engage with support systems.
The central proposed change is a shift from access based on diagnosis to ‘functional capacity’. For new entrants to the scheme, eligibility requirements will be tightened based on functional impairment rather than diagnosis, with all current participants subject to reassessment over time.
This change will have impacts on a cohort that is already facing declining access. The Australian Psychosocial Alliance has reported a 62 per cent fall in NDIS approval rates for psychosocial disability over five years, with only one in four applications approved.
This reflects the reality that people with psychosocial support needs are already experiencing reduced access to support.
The reforms also propose moving psychosocial supports to new ‘Foundational Supports’ delivered outside the NDIS. This will carry significant risks if undertaken prematurely or without clear safeguards – if people lose NDIS access before the replacement system is built and operating, they may be left with no support at all.
The scale of unmet need underlines the potential impact of the proposed changes. An estimated 500,000 Australians have unmet psychosocial needs, and around 230,500 people assessed with severe mental illness have no adequate access to support through any program.
Flourish Australia supports MHCC’s call on the government to:
● protect continuity of support for existing participants until a rebuilt system is established and fully operational
● take urgent action with state and territory governments to develop and deliver psychosocial supports through Foundational Supports for people outside the NDIS
● ensure any new system is co-designed with people with lived experience, carers and the mental health sector.
Psychosocial supports are not optional extras – they are essential to living well in the community.
About Flourish Australia
Flourish Australia is community mental health service and registered NDIS provider that specialises in providing tailored peer-led support. This includes assistance with day-to-day living, employment, housing and more. To find out more about how we can help, contact us on 1300 779 270 or here.
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