• Table of Contents
• Disability Investment Group
• Executive Summary
• National Disability Insurance Scheme (NDIS) – A Possible Model
• Principal Recommendation
• Summary of Other Recommendations
• Section I
• Part 1: Experience of Disability in Australia
• Part 2: Need for Change
• Section II
• Part 3: Establishing a New National Disability Insurance Scheme
• Part 4: Ensuring Income Support is Adequate
• Part 5: Improving savings and taxation incentives for privately - funded services
• Section III
• Part 6: Providing More Housing for People with Disability
• Part 7: Offering Better Employment Opportunities
• Part 8: Building Research and Best Practice
• Appendices
• Appendix A
• Appendix B
• Appendix C
• Appendix D
• Appendix E
• Appendix F
• Appendix G
• Appendix H
• Appendix I
• Appendix J

The Way Forward – A New Disability Policy Framework For Australia

• Previous: Appendix A
• Next: Appendix C

Appendix B: Proposed Terms of Reference for a Feasibility Study of a National Disability Insurance Scheme

The Terms of Reference for a feasibility study of a National Disability Insurance Scheme should cover three principal areas:

• the policy framework, governance structure and prudential management of the scheme;
• scheme care and support management; and
• scheme assessment and review requirements.

Within each of these key areas there will be a number of matters to consider.

Policy Framework, Governance Structure and Prudential Management

• Policy framework (consider and further develop the three pillar policy framework recommended by the DIG);
• governance options (consider a range of governance options and their advantages/disadvantages, drawing on international and Australian experiences);
• cost modelling (develop a detailed demand and utilisation model, extending the work of the DIG and conducting a needs/gap analysis);
• revenue modelling (consider a range of options for funding the scheme, including alternative revenue sources, and develop projections based on a range of economic and demographic forecasts);
• data and research requirements (develop data collection requirements across different disability types and needs, so as to develop a strong evidence base to support scheme governance, to manage scheme utilisation and outcomes and to underwrite continuous improvements and efficiency gains);
• investment management (investigate investment management options, including potential links to the Future Fund and superannuation);
• insurance concepts (explore advantages of the insurance model of risk sharing, liability management and prudential oversight);
• State and Territory compensation scheme reform (consider and develop options for reform of state/territory-based compensation schemes to provide a consistent national and holistic insurance policy framework);
• law reform (consider reforms to State and Territory compensation laws to facilitate the introduction and operation of a NDIS);
• public/private schemes (consider the roles of the public and private sectors in the insurance and investment operations of the scheme); and
• transition (develop transition options for each State and Territory towards a nationally consistent approach, given different policy developments to date in each jurisdiction).

Scheme Care and Support Management

• Network development options (consider the required service provision network infrastructure requirements of the new scheme and develop options for transitions from the existing State structures);
• care and support requirements (for people with disability, their families and carers consider the types and range of services required, based on expected needs and demands);
• lifetime approach (investigate how best to take account of changing needs of people with disability and their families over their life course);
• individual planning and monitoring (consider how individual client potential can best be realised through personal planning, individualised services and outcome monitoring);
• labour force participation (consider arrangements to build employment opportunities for people with disability, their families and carers);
• case management (investigate insurance-type models of case management, care coordination and individual plan monitoring);
• service provider development (consider the industry structure and how service providers can be developed and strengthened as part of the new scheme to best meet its requirements); and
• workforce development (determine workforce needs to deliver expected outcomes and investigate options to develop and train this workforce).

Scheme Assessment and Review Requirements

• Needs assessment (establish the types and quantum of care and/or support requiring coverage and support by the scheme);
• expert panel engagement (assemble recognised experts on linking needs and demand to measurable outcomes to assist with scheme design and management);
• functional assessment (explore suitable classifications and instruments establishing eligibility and levels of care and support);
• needs management (explore operational issues related to assessments and utilisation of services, including feedback for claims management purposes);
• appeals and review mechanisms (explore issues around the nature of review and appeals, including the structures and experiences in similar schemes); and
• sensitivity testing (link different eligibility and entitlement options with service options and cost and liability modelling).

Stakeholder Engagement and Consultation

In addition to the key areas of review, the feasibility study will need to engage and consult with a wide range of stakeholders.

The key stakeholder groups should include:

• people with disability (peak advocacy bodies and individuals, whose needs and care are at the centre of the new support framework);
• National People with Disabilities and Carer Council;
• carers (peak bodies and carers representing the needs and interests of providers of unpaid care to people with disability);
• Commonwealth Government (the central agencies, including Prime Minister and Cabinet, Treasury and Finance, and the human services agencies, including Families, Housing, Community Services and Indigenous Affairs, Health and Ageing, and Education, Employment and Workplace Relations, as well as other agencies as appropriate);
• States and Territory Governments (the equivalent central and human services agencies to the Commonwealth, as well as State accident compensation, civil liability and health care liability authorities);
• other government enquiries (for example, the Henry Review of Australia's Future Tax System and the National Disability Strategy);
• service providers (peak bodies and agencies engaged in service delivery across the disability sector);
• multi-disciplinary specialist disability teams (doctors, physiotherapists, occupational therapists, speech therapists, disability care workers, case managers, etc); and
• academics and research groups (specialist research groups in disability).

Given the need for both wide and extensive engagement it will be necessary, at the initial stage, to develop a stakeholder engagement plan in order to determine with how and when it will be best to consult.

The feasibility study should be led by a specialist taskforce drawn from across government and including specialists from outside government and its work should be supported by a dedicated specialist secretariat.

• Previous: Appendix A
• Next: Appendix C

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