Recommendation 10.10 – Provider of last resort

What has been achieved to date

All governments support the policy intent of Disability Royal Commission Recommendation 10.10, which highlights the need for coordinated arrangements to ensure people with disability are not left without essential supports when provider or market failure occurs. This work is being progressed alongside recommendation 13 and Action 13.4 of the NDIS Review.

To date, the Australian Government has completed a desktop analysis to establish a shared understanding of the policy landscape and key considerations for Provider of Last Resort responses. Building on this work, governments are now engaging collaboratively through the Disability Reform Ministerial Council process to explore possible approaches to address failed and thin markets, particularly in remote and regional areas and for participants with complex needs or in crisis situations.

What the Disability Royal Commission said in the final report

The Australian Government should urgently engage with state and territory governments about funding and arrangements for a provider of last resort scheme. It should also consult with people with disability, disabled people’s organisations, disability representative organisations including member-led First Nations Community Controlled Organisations, and peak bodies about how such a scheme could operate.

The scheme should be designed to address:

• failed or thin markets, particularly for First Nations people with disability in remote or very remote areas, and consider the use of block funding to guarantee service provision in those communities
• access to services for
  • people in crisis situations
  • people at risk of losing their accommodation and disability services
  • people whose needs cannot be adequately met by existing services
• access to case management for people with disability at heightened risk of violence, abuse, neglect or exploitation
• clarity about which agency has the lead coordinating role.

The Australian Government should put forward a proposal for discussion to the Disability Reform Ministers Council in 2024.

Joint Government response July 2024

The Australian Government and state and territory governments acknowledge that there are gaps when an NDIS provider or the NDIS market fails which can prevent a person with disability in certain areas or with certain needs from accessing the supports and services they need, when they need them.

A provider of last resort scheme could be one mechanism to address failed and critically thin markets, particularly for First Nations people in remote communities, as well as regional and remote communities more broadly, and participants with complex needs. It could also be a mechanism to support people in crisis situations, such as those at risk of losing their accommodation, or access to disability supports.

All governments support the policy intent of this recommendation and are committed to working together through the Disability Reform Ministerial Council to consider reform options alongside Recommendation 13 and Action 13.4 of the NDIS Review, in consultation with people with disability, their families, carers, representative organisations, First Nations Community Controlled Organisations, peak bodies, and other key stakeholders.

More recommendations

View progress on other recommendations made by the Royal Commission.