Key to the success of the NDIS transition is ensuring the long-term financial sustainability of the Scheme. The financial sustainability of the Scheme relies on the Scheme being able to support people with a disability to achieve social and economic outcomes in a way which represents value for money. To achieve these outcomes the NDIA needs to focus on quality plans for participants, and work with the market to implement these plans.
The NDIS is based on insurance principles. In particular, financial sustainability is monitored by considering emerging experience and comparing this experience with expectations. The insurance approach allows any differences between emerging experience and expectations to be identified quickly, and management responses put in place if required.
The financial sustainability of the Scheme is monitored by the Scheme Actuary, and the Annual Financial Sustainability report includes an assessment of the NDIS after the first year of full Scheme transition.
This Chapter provides a summary of: