Abbott Government faces NDIS budget blow-out of $400million

Opposition Leader Tony Abbott speaks to media at the CAboolture Netball Association.
Opposition Leader Tony Abbott speaks to media at the CAboolture Netball Association. Vicki Wood

THE Abbott government faces a budget blow-out of $400million on the National Disability Insurance Scheme as it seeks savings for the coming May budget.

Assistant Social Services Minister Senator Mitch Fifield said the NDIS budget was "underestimated" by nearly $400 million.

He said in the Senate the latest second-quarter results showed 921 people were not in the trial sites scheme - about half the target.

And despite individual package costs falling, they were still about 15% above the budgeted costs, at $40,466 per person.

Sen Fifield said the latest report's errors in the bilateral agreements for the scheme had led to the $400 million boom in the cost.

He also signalled potential delays in the national roll-out. "Errors of this sort are far more likely when a political timetable to achieve launch prior to an election is pursued, rather than the more prudent timetable recommended by the Productivity Commission," Sen Fifield said.

Total plan completions under the scheme also reached 2586, about half the targeted 4340 completed plans.

Topics:  abbott government national disability insurance scheme

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