{"id":620320,"date":"2026-04-21T01:12:15","date_gmt":"2026-04-21T01:12:15","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/620320\/"},"modified":"2026-04-21T01:12:15","modified_gmt":"2026-04-21T01:12:15","slug":"labor-must-means-test-the-ndis-to-help-reel-in-the-ballooning-scheme-amps-chief-economist-shane-oliver-demands","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/620320\/","title":{"rendered":"Labor must means test the NDIS to help reel in the ballooning scheme, AMP&#8217;s chief economist Shane Oliver demands"},"content":{"rendered":"<p>Labor must means test the NDIS, a leading economist has demanded as the government looks to rein in the ballooning scheme.<\/p>\n<p>The Albanese government is considering ways to cap annual NDIS spending growth, which currently sits above 10 per cent, to about six per cent.<\/p>\n<p>Prime Minister Anthony Albanese ruled out means testing the disability program despite both the OECD and the IMF calling on the government to test the scheme.<\/p>\n<p>AMP\u2019s chief economist Shane Oliver said means testing the NDIS was crucial to limiting the size of the public sector.<\/p>\n<p>\u201cI think we probably need to look at welfare more generally, including the NDIS, but not just the NDIS to make sure that welfare spending is targeted to those who really need it,\u201d Mr Oliver told Sky News.<\/p>\n<p>\u201cSo that means more means testing as an area to look at.\u201d<\/p>\n<p>The NDIS\u2019 costs have more than doubled since 2021 and are predicted to hit $55.1 billion in 2026-27.<\/p>\n<p>One Nation leader Pauline Hanson said <a class=\"body-link\" href=\"https:\/\/www.skynews.com.au\/australia-news\/politics\/hanson-backs-meanstesting-for-out-of-control-ndis-as-labor-looks-to-tighten-budget-belt\/news-story\/b2b13e824f4adfbb2f0f8b5833055dfd\" rel=\"noopener nofollow\" target=\"_blank\" data-tgev=\"event119\" data-tgev-container=\"bodylink\" data-tgev-order=\"b2b13e824f4adfbb2f0f8b5833055dfd\" data-tgev-label=\"australia-news\" data-tgev-metric=\"ev\">the scheme \u201cwill not last\u201d<\/a> without means testing as pressure builds on the government to limit the program.<\/p>\n<p>\u201c(The NDIS) is out of control and the system will not last long unless we start reining it in,\u201d she told SkyNews.com.au earlier this month.<\/p>\n<p>\u201cYou\u2019ve got people on it who are quite well-to-do &#8230; someone\u2019s got to pull it back in.\u201d\u00a0\u00a0<\/p>\n<p>She criticised the comparison made between the NDIS and Australia&#8217;s free health system &#8211; which has been used to argue against means testing.\u00a0\u00a0<\/p>\n<p>\u201cThe NDIS is totally different &#8230; if you means test the aged care pension, why not this?\u201d she argued.<\/p>\n<p><img decoding=\"async\" class=\"poster-img\" src=\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/04\/62b40e71d0577e6c9a654a5ae8d77677.jpeg\" data-sctrack=\"op-poster-img\" alt=\"Former ACCC chair weighs in on NDIS means testing debate\" fetchpriority=\"high\"\/><\/p>\n<p>When explaining why Labor was opposed to means testing the NDIS, Mr Albanese argued for the program being universal.<\/p>\n<p>\u201cWe support the universality of the system,\u201d the Prime Minister told <a class=\"body-link\" href=\"https:\/\/www.afr.com\/policy\/economy\/albanese-rules-out-ndis-means-test-flags-housing-tax-overhaul-20260411-p5zn3h\" rel=\"noopener nofollow\" target=\"_blank\">The Australian Financial Review<\/a>.<\/p>\n<p>\u201cEligibility should be about people\u2019s disability and enabling them to fully participate in society.\u201d<\/p>\n<p>Treasurer Jim Chalmers on Monday said cuts to the scheme will be \u201ceasily the most important part of the savings package that we will present on budget night\u201d.<\/p>\n<p>\u201cThe NDIS is growing too fast for Australians to afford,\u201d Mr Chalmers told reporters.<\/p>\n<p>\u201cIt\u2019s about $49 billion this year. By the end of the forward estimates \u2013 not that far away \u2013 it\u2019s about $62 billion.\u201d<\/p>\n<p>Labor has attempted to rein in costs by launching a separate scheme called Thriving Kids with state governments to limit the number of children on the NDIS.<\/p>\n<p>Children with autism or who experience developmental delays make up about 44 per cent of the scheme\u2019s participants.<\/p>\n<p>The Thriving Kids program dedicates $4b over five years to support children aged eight and under with developmental delays or who have autism but have low-to-moderate support needs.<\/p>\n<p>This program will take them off the NDIS and is a return to community-based services that were more common before the scheme.<\/p>\n<p>Labor was urged to means-test the NDIS by the OECD in its 2026 Australian economic survey.<\/p>\n<p>It called for the government to cap spending growth at 5 per cent annually, while urging Labor to reconsider means testing.<\/p>\n<p>\u201cUnlike cash benefits, where Australia has a good record of cost control and efficiency, the NDIS and other in-kind benefit programs are not means-tested,\u201d the\u00a0<a class=\"body-link\" href=\"https:\/\/www.oecd.org\/content\/dam\/oecd\/en\/publications\/reports\/2026\/01\/oecd-economic-surveys-australia-2026_1b6f84bc\/d22a1efd-en.pdf\" rel=\"noopener nofollow\" target=\"_blank\">OECD said in its January report<\/a>.<\/p>\n<p>\u201cConsideration could be given to revisiting that approach, given the scale of cost pressures in the NDIS and the potential for the cost of other in-kind benefit programs to balloon.\u201d<\/p>\n<p>In a 2023 report the IMF said the\u00a0<a class=\"body-link\" href=\"https:\/\/www.imf.org\/-\/media\/files\/publications\/cr\/2023\/english\/1ausea2023001.pdf\" rel=\"noopener nofollow\" target=\"_blank\">NDIS&#8217; cost escalation should be brought under control.<\/a><\/p>\n<p>It suggested the government investigate incorporating &#8220;progressivity&#8221; into the program with cost-sharing or means-testing, &#8220;ensuring consistent and equitable access to the NDIS&#8221;.\u00a0<\/p>\n<p>Calls to means test the scheme come as the Albanese government faces the nation\u2019s debt ballooning past $1 trillion.<\/p>\n<p>Australia also stares down about 10 years of deficits, inspiring many economists to demand Labor find savings where possible.<\/p>\n","protected":false},"excerpt":{"rendered":"Labor must means test the NDIS, a leading economist has demanded as the government looks to rein in&hellip;\n","protected":false},"author":2,"featured_media":620321,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[2324,64,63,99,164,42086,1788,300804,228132,300805,5793,74732,5716],"class_list":{"0":"post-620320","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-anthony-albanese","9":"tag-au","10":"tag-australia","11":"tag-business","12":"tag-economy","13":"tag-jim-chalmers","14":"tag-labor","15":"tag-means-test-ndis","16":"tag-means-testing","17":"tag-means-testing-ndis","18":"tag-ndis","19":"tag-prime-minister-anthony-albanese","20":"tag-shane-oliver"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/620320","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=620320"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/620320\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/620321"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=620320"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=620320"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=620320"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}