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Reforms will be delayed - but are likely to be more significant
Health Minister Mark Butler has confirmed all major health funding agreements — including the multi-year hospital deal and NDIS reforms — will not be finalised until the end of the year.
Butler acknowledged the rollout of foundational supports for Australians with disability will not begin on July 1, as previously suggested. Some observers have pointed to this as a positive, suggesting it indicates the new ministers are determined to iron out a umber of problems embedded into the current reform proposals.
The Minister specifically clarified that final decisions on foundational supports — a key element of NDIS reform — are now being intertwined with broader hospital funding negotiations and will be resolved “over the course of the rest of this year.”
“This is a job lot,” Butler said, referring to the NDIS reform rules, foundational supports, and the multi-year public hospital funding agreement. “There’s obviously quite a deal of work to go on all three components.”
This suggests a more significant reform of the overall health system is being considered. This would provide better healthcare and support more generally, while restricting the NDIS to those with significant and long-term disability.
This delay is likely to frustrate, if not surprise disability advocates and peak bodies. Some broad outline of policy detail had been expected within weeks.
Instead, Butler indicated a slower timetable would be adopted, citing the newly restructured ministerial responsibilities that place both the NDIS and foundational supports under his portfolio — a shift that, he argued, creates a “single point of contact” for states and territories.
Clarity on foundational supports — also known as tier 2 supports for people ineligible for the NDIS — remains elusive. Butler reiterated that no changes are being made to core NDIS eligibility, but reforms will extend assistance to a broader population through foundational programs, echoing the December NDIS Review’s recommendations.
Disability, Democracy, and ADHD Access
Butler also fielded questions on other health and disability matters, including the alarming spike in informal votes among aged care and disability residents. He acknowledged the issue, describing voting access as a critical democratic right, and called for a review of support provided by the Australian Electoral Commission.
Finally, in response to widespread ADHD treatment delays and costs, Butler praised recent state efforts to expand GP prescribing authority and revealed he has requested a briefing from his department to explore national harmonisation. “There’s great opportunity for us to work together as jurisdictions,” he said.
Advocacy and ADHD Access
Butler also fielded questions on other health and disability matters, including the alarming spike in informal votes among aged care and disability residents. He acknowledged the issue, describing voting access as a critical democratic right, and called for a review of support provided by the Australian Electoral Commission.
Finally, in response to widespread ADHD treatment delays and costs, Butler praised recent state efforts to expand GP prescribing authority and revealed he has requested a briefing from his department to explore national harmonisation. “There’s great opportunity for us to work together as jurisdictions,” he said.
NDIS Centralised Under Butler
The transfer of NDIS responsibility to Butler’s department is already reshaping how governments negotiate disability policy. While Bill Shorten previously oversaw the NDIS as a standalone portfolio, Butler now holds both the “Minister for Disability” and “Minister for the NDIS” titles, a subtle shift that reflects structural consolidation at the federal level.
This new arrangement was intended to expedite foundational support rollout. Butler’s comments yesterday suggested, however, that the new Ministers have decided some re-working of the new arrangements is still required.
Initial comments from analysts suggested that this reflects a detemination of the new ministers, Butler and Macallister, to ensure they are adequately comfortable with the long-term direction of the NDIS settings.
“The problem is that these foundational supports are required now,” one said, before adding a caveat. “On the other hand, any sign that changes are being properly considered before being introduced is very good.”
Hospital Crisis Looms, But No Bailout for Healthscope
Unsurprisingly most of the press conference focused on the sudden receivership of Healthscope, Australia’s second-largest private hospital operator. With 19,000 staff and 650,000 annual patients, Healthscope’s instability poses a direct threat to continuity of care — especially if private hospital closures push more people into public systems.
Butler said a Commonwealth Bank–led funding package would keep the hospitals running for several months. However, he ruled out any public bailout, underscoring that the now-defunct ownership — a Canadian private equity firm — must bear responsibility.
“The owners of this company will not receive a taxpayer bailout,” Butler said firmly.
Still, he promised close oversight of the sales process and demanded assurances from Healthscope’s leadership that existing surgeries and patient bookings would proceed as planned.
This article was first published by Ability News on May 27th 2025. Republished with permission. Read the original article here.