Representational image of a paralyzed woman in a wheelchair.
Representational image of a paralyzed woman in a wheelchair.

In a bid to rein in the soaring costs, the National Disability Insurance Scheme (NDIS) minister, Bill Shorten, has warned states that the government will "rip the Band-Aid off" to enforce reforms that will lead to "less-intensive" foundational support.

In a National Press Club address Tuesday, Shorten expressed willingness to work with states and territories to reform the nation's disability scheme, News.com reported. He added the negotiations with the states have been "fruitful," even though they haven't supported the changes proposed by the federal government.

"I will do everything I can to make the states feel they can support it, which they don't at this point," he said.

Even as he was willing to collaborate, Shorten said he was prepared to take bold actions to address the challenges that come his way.

His plans to rein in costs had hit a snag in June when the Coalition and the Greens formed an unlikely alliance and opted to launch a further investigation into the scheme's proposed reforms, rather than proceeding with the legislation.

"The states' fundamental fear is that somehow they're going to get lumped with (many people) on the NDIS, (that's) not right. ... Our legislation will, I think, decrease the cost curve, which is great, and I think it'll tighten up things which need tightening up."

Acknowledging the ongoing resistance from state governments, who fear being swamped by responsibilities and a lack of funding, Shorten emphasized that the proposed reforms aim to reduce costs by AU$14.4 billion over four years and limit annual growth to AU$1.5 billion, while pushing states to provide more foundational support services.

"I will walk a long way to try and bring them on-board, but at the end of the day, people with disability are more important than any particular level of government, so if we have to rip the Band-Aid off, we will," he said, per The Advocate.

Shorten's comments came as state and territory governments continue to worry they haven't received clear details about what these foundational support services will entail and how funding responsibilities will be split between them and the federal government.