By Rebel News | Created at 2025-03-25 23:51:29 | Updated at 2025-03-30 07:11:43
4 days ago
The National Disability Insurance Scheme (NDIS) has become one of the biggest financial burdens on the federal budget, with costs projected to surpass $60 billion within the next five years.
The latest budget figures reveal that NDIS spending will reach $52 billion in 2025, overtaking the defence budget, which is set at $51 billion. By 2029, the scheme’s cost is forecast to hit $64 billion—outstripping both defence and education, which are projected to cost $61 billion and $60 billion, respectively.
According to the federal budget for 2025-26, the NDIS has recorded the second-highest growth rate among major government expenses, trailing only interest payments on national debt.
With the program’s costs escalating, the government is under increasing pressure to rein in spending and ensure its long-term sustainability.
Treasurer Jim Chalmers addressed the issue in his budget speech, arguing that the government had implemented necessary reforms. “This budget builds on the progress we’ve made, together. It’s a plan to help with the cost of living – with two new tax cuts,” he said.
The budget papers confirm that social security and welfare now account for 37 per cent of total government spending. “The increase in expenses is largely due to the government’s ongoing investment in assistance to people with disability,” the papers state.
These costs include the NDIS, the Disability Support Pension, and aged care funding.
Despite government assurances that it has kept NDIS growth within its target of eight per cent per year, concerns persist over waste and fraud in the system. The government has estimated that fraudulent claims alone cost taxpayers around $2 billion annually.
The soaring cost of the NDIS comes as Australians continue to struggle with cost-of-living pressures. The federal budget’s response includes tax cuts that will provide just $5 per week in relief for workers next year.
Chalmers claimed the government’s tax measures would “make a difference,” but experts and critics remain unconvinced, pointing to rising energy prices, skyrocketing rents, and mortgage stress as major economic challenges.
