Title: Addressing the Structural Causes of NDIS Challenges Prepared for: Community and Media Comment Purpose: To outline the core drivers of cost blowouts, poor outcomes, and system failure within the NDIS, and to explain where current reform proposals must focus to resolve these issues. Summary Current public discourse and proposed reforms for the National Disability Insurance Scheme (NDIS) focus heavily on regulation, provider compliance, and legislative change. This briefing paper argues that these measures fail to address the fundamental causes of escalating costs, safeguarding failures, and declining trust in the system. The primary contributors to these issues are the removal of professional judgement, local decision-making, and case management; the abandonment of checks and balances; and the over-reliance on standardised, individualised funding models. Without addressing these structural and operational failings, further regulatory reform risks entrenching—not resolving—the problems. Background and Context The NDIS was designed to build independence, personal capability, and long-term sustainability of supports. Historically, disability services operated through integrated local systems that balanced professional case management, community-based supports, and accountability mechanisms. Over time, the system has shifted toward centralisation, automation, and administrative control. This shift has coincided with budget blowouts, increased reports of abuse and neglect, and widespread dissatisfaction among participants, providers, and staff. Key Issues Identified 1. Removal of Professional Judgement and Case Management Funding and planning decisions once made by qualified professionals with local knowledge are now largely driven by algorithms and remote processes. This has resulted in over-funding and over-servicing in some cases, grossly under-funded plans in others, and significant inconsistency across participants with similar needs. Professional case management, which previously adjusted supports as people built independence, has largely disappeared.