New research has cast doubt on the capacity of a significant proportion of disability organisations to meet expected demand under the National Disability Insurance Scheme while a separate report has raised the risk of “critical market failure” as the program rolls out across Australia.
A Curtin University study of 180 disability groups found 15 per cent recorded a loss in the previous financial year while 42 per cent were generating a profit of less than three per cent.
Lead author David Gilchrist said the low profit margins and inability to raise cash reserves would leave some organisations facing financial collapse as the $22 billion NDIS is implemented over the next three years.
“The advent of the NDIS will put them under further pressure leading to significant sustainability issues in the medium term if we don’t do something to mitigate those problems,” he said.
Source: The Sydney Morning Herald