The release of NDS’s 2024 State of the Disability Sector Report underscores the challenging crossroads faced by the sector today. As unveiled on December 9 at the Executive Leaders Conference in Adelaide, the report reflects deepening concerns among disability service providers, amid reforms yet to take shape.
Last year's findings illuminate a stark reality: nearly 50% of organisations reported financial losses in the 2023–24 period, an alarming rise from 34% the previous year. Established providers, including prominent names in the disability space, bear the brunt of these financial difficulties. Years of slim margins have left many providers on precarious ground, with 21% contemplating exiting the sector entirely.
Central to the challenges are the ongoing inadequacies in NDIS pricing. A staggering 80% of respondents fear that current price structures make delivering services unsustainable, highlighting the need for urgent adjustments to account for service quality and complexity.
Despite these struggles, the sector demonstrates resilience. While 88% of respondents describe worsening operating conditions, 51% expressed aspirations to expand. Yet, growth remains elusive, with 81% having declined opportunities to offer new services due to constraints.
Michael Perusco, CEO of NDS, emphasised the critical need for swift action to prevent closures of high-quality services that cater to individuals with complex needs.
“The closure of such services would significantly limit options for people with disabilities, leaving many without essential support,” he warned.
Looking ahead, the report points to innovation, equitable funding, and workforce development as the cornerstones of recovery. It also calls for a streamlined and cost-effective universal registration system, alongside better communication on upcoming reforms to facilitate provider planning.
The 11th instalment of this annual report remains an unparalleled resource, chronicling the evolution of the sector since the inception of NDIS. It draws insights from 397 diverse respondents, offering a comprehensive perspective on the challenges and opportunities ahead.
For those invested in the future of disability services, the full report is available on the NDS website, including accessible formats. This pivotal document serves as both a call to action and a roadmap for sustainability in a sector striving to meet the needs of some of the most vulnerable members of our community.
Source: NDS.ORG.AU, NDS State of the Disability Sector Report