Updated: Sep 20, 2023
Key Points:
- Impressive Revenue Growth: Australia’s NDIS providers have experienced extraordinary revenue growth at an annual rate of 27.5% over five years, reaching $37.5 billion in 2022-23, primarily due to increased government funding.
- Future Expansion: The industry is expected to grow, with around 500,000 people receiving NDIS support by June 2023. Anticipated annual revenue growth of 4.7% through 2027-28 is set to reach $47.4 billion, aided by technological advancements.
- Core Services Driving Growth: Disability support workers offering core services like personal care, accommodation, and transport assistance have fuelled industry expansion, catering to a diverse range of needs.
- Challenges in Capacity Building: Capacity-building services, which aim to empower clients, have faced difficulties and seen their revenue share decline due to the rapid growth of core services.
- Promising Future Amid Challenges: Despite obstacles, the NDIS providers industry’s future looks promising, driven by government funding, technological advancements, and a growing participant base, as long as providers remain adaptable to clients evolving needs.
In recent years, Australia’s National Disability Insurance Scheme Providers industry has experienced an extraordinary surge in revenue, driven by increased government funding and a commitment to supporting individuals with disabilities. As funding arrangements continue to evolve and expand, this industry has become pivotal in providing essential services to disabled individuals nationwide. This blog post will explore the NDIS providers’ remarkable growth, current performance, and exciting prospects. This article delves into the remarkable growth, recent performance, and promising future of NDIS providers while highlighting the pivotal role that HCPA plays in assisting these providers in their journey.
A Revenue Boom
The National Disability Insurance Scheme (NDIS) has been a game-changer for disability service providers in Australia. Over the past five years, revenue for NDIS providers has witnessed an astonishing annual growth rate of 27.5%, culminating in a total revenue of $37.5 billion in 2022-23. This meteoric rise in income has significantly boosted profitability within the industry.
Notably, a substantial portion of this growth is attributed to increased funding rather than a surge in organic demand. The NDIS was deemed an essential service during the COVID-19 pandemic, further insulating it from economic fluctuations. The pandemic led to the Federal Government extending support by opening the National Medical Stockpile to NDIS providers.
HCPA is dedicated to supporting NDIS providers through their journey of growth and development. From registration and project management to purchasing SDA properties, we have comprehensive solutions that empower providers to navigate the industry’s complexities effectively.
A Bright Future Ahead
The NDIS providers’ industry is set to continue growing, albeit at a more moderate pace than the previous five years. As more individuals enrol in the NDIS, providers must adapt by diversifying and delivering services for an increasingly diverse range of disabilities. HCPA understands the importance of providing high-quality care and assists NDIS providers in preparing for this future growth.
By June 2023, it’s estimated that around 500,000 individuals will be receiving NDIS support. Technological advancements are poised to play a pivotal role in enhancing support for participants, particularly in assistive technology. Revenue for NDIS providers is expected to maintain an impressive average annual growth rate of 4.7% through 2027-28, ultimately reaching $47.4 billion.
Core Services: A Driving Force
Within the NDIS providers industry, core services have been a driving force behind its growth. Disability support workers offer essential assistance with daily activities tailored to each client’s unique needs. These services encompass personal care, domestic tasks, provision of everyday consumables, and short-term accommodation. Core services also extend to transport assistance and support for social participation, fostering independence. This segment has expanded over the past five years, reflecting the NDIS’s reach to more people with disabilities.
SDA – Specialist Disability Accommodation
The NDIA projects that SDA demand will increase from 22,900 participants in June 2022 to 36,700 in June 2042, at an average annual growth rate of 2.4%. This compares to annual growth in the Australian population of 1.2% per annum, growth in the number of NDIS participants of 5.7% per annum, and growth in the number of NDIS participants with Supported Independent Living supports of 5.6% per annum. The SDA demand projections include NDIS participants who are not receiving SDA support because they have yet to seek to retain that support in their plan. Demand for Melbourne-West is projected to grow by 152%. Click here to see the top 10 areas. HCPA’s expertise in SDA properties and compliance enables providers to create safe and accessible housing options for participants, contributing to their overall well-being.
Table 1: Top 10 SA4 Regions by Largest Absolute Growth in SDA Demand
Challenges in Capacity Building
While core services flourish, capacity-building services have faced challenges. These services aim to empower clients to achieve self-actualisation and greater independence. They encompass assistance in finding employment, behaviour management, personal training, dietary guidance, financial management training, and accommodation support. Unfortunately, this segment has declined as a revenue share in the last five years, as core services have outpaced their growth.
The National Disability Insurance Scheme Providers industry in Australia has reached new heights, driven by robust government funding and an unwavering commitment to enhancing the lives of individuals with disabilities. HCPA is a trusted partner in this journey, offering comprehensive solutions to support NDIS providers’ mission to empower individuals with disabilities. As the NDIS continues to evolve and expand, the industry must remain adaptable and responsive to the needs of its clients. With technological advancements and a growing participant base, the future of NDIS providers looks promising, ensuring that individuals with disabilities receive the support they deserve and thrive in society.
HCPA is an all-in-one solution for NDIS & SDA providers, supporting them with registration, project management, purchasing SDA properties, growth advisory and consulting. Contact us here or call 03 9084 7472 to learn how we can help you succeed.
SOURCES | IBISWorld ‘National Disability Insurance Scheme Providers in Australia’; NDIS ‘SDA Pricing Review – Final Report‘|
