BY OLI GOELDNER
Hunter disability service providers are warning the federal government's proposed changes to the NDIS are putting participants and the economy at "high risk".
The federal health minister has revealed around 160,000 people are expected to be cut from the disability insurance scheme.
The NDIS is estimated to cost the Albanese Government around $50 billion, with new eligibility rules set to slash the overall price tag.
With the changes, all NDIS providers will have to be registered, with digital tracking of their services to be put in place.
However, the CEO of Hunter-based organisation Connectability Australia, David Carey, said the plan was developed with little to no consultation in the sector.
"It's not a well thought through plan," he said.
"They didn't consult about why the reforms are needed and how best to do it to minimise the impact on people with a disability."
Data from the National Disability Services has revealed 73 per cent of providers are operating at a loss or barely breaking even.
Mr Carey said the changes will compound financial pressures further.
"We're going to see the job losses in other sectors as well," he added.
"It's almost recession-causing in the way its been thought out.
"There's no transition plan and justification for this as far as economic sense, as well as social sense to the community."
Alongside the planned cuts, the first payment of the Portable Long Service Leave levy is due this month, after being launched in July last year.
Under the levy, providers are required to absorb a 1.7 per cent additional cost without an increase in funding.
Contributions from employers are collected by the Long Service Corporation, who use the pooled money to pay long service leave to workers, even if they change employers.
Mr Carey reported his business, which employs around 500 staff, will have to come up with an extra $600,000 each year to pay the levy.
He said the levy, in conjunction with the cuts, is going to significantly impact families ability to afford proper care.
"What's happening now is you're going to see people that are virtual prisoners in their own home," he explained.
"Families will have to cease work or cut back work to look after their kids because we won't be able to do it on their behalf and have the time to enhance their lives, build skills and go out into the community."






