NDIS creates jobs boom in Victoria
The Commonwealth Government has today announced up to 18,100 new jobs are expected to be created in Victoria in the next three years as a result of the National Disability Insurance Scheme (NDIS), moving to full roll-out in 2019-20.
In addition to the surge in jobs, estimated to be between 14,850 and 18,100, it is expected that the disability services market in Victoria will grow from approximately $2.6 billion to $5.1 billion in the same period.
The information, released today, comes from the latest Market Position Statement (MPS) by the National Disability Insurance Agency (NDIA), designed to inform current and prospective providers, and market stakeholders more broadly, of the opportunities the NDIS will create in Victoria in the coming years.
Minister for Social Services, Christian Porter, said the NDIS presented huge opportunities for Victoria to develop a competitive and innovative market that would see more jobs and significant financial investment.
“What this will look like on the ground is a 76 per cent boost to the disability services workforce and an additional $2.5 billion worth of expenditure into the local market,” Mr Porter said.
“The Victorian market for disability supports is estimated to increase by about 35 per cent from 78,000 people to 105,000 in 2019. This will mean increased demand for quality, value-for-money services, new products and technologies, increased jobs and strong economic growth right across the state.
“It is expected that there will be up to 2,950 new jobs created in Southern Melbourne, up to 2,150 in Bayside Peninsula and up to 2,050 in Brimbank Melton.”
The NDIS market will expand dramatically in coming years within the existing sector and with new entrants, not only in terms of services that are currently being delivered, but also innovative and different types of services.
“Developing the market will take time, but we’ve already seen it start to respond and grow,” Mr Porter said.
“While there were about 650 registered service providers in Victoria at the end of last year, there are around 630 additional providers with registrations in progress. Some of these providers offer innovative and different types of services typically not associated with the disability sector such as fitness and sports, financial services, ICT, trades and builders.”
This is the second MPS in a series being developed by the NDIA that will be expanded and developed as the Scheme’s evidence base grows. It takes a high-level look at Victoria, with a focus on the North East Melbourne area.
North East Melbourne would be one of the first areas to transition into the NDIS from 1 July, with the increase in the number of people accessing supports highest in Whittlesea (growing from 2650 to 3400 people) and Darebin (growing from 1950 to 2550 people).
Assistant Minister for Disability Services Jane Prentice said the total value of the market in North East Melbourne would be approximately $490 million, which represents 9,900 participants and an estimated growth of $210 million in services.
“One of the features of the North East Melbourne area is its diversity – 35 per cent of people are from a culturally and linguistically diverse (CALD) background, compared to 28 per cent across Victoria,” Mrs Prentice said.
“This presents a unique opportunity for providers to develop culturally responsive support offerings to meet the needs of the local community.
“Provider readiness feedback has been positive, with almost half the providers the NDIA has spoken to in the North East Melbourne area having strong growth intentions and around a third having experience operating under the NDIS in the Barwon trial site.
“The MPS aims to share information about the emerging NDIS in the marketplace, allowing providers to better understand areas of expected demand growth and the characteristics of particular markets,” Mrs Prentice said.
“It will assist providers to make business decisions about how they can adapt to and grow within the new system.”
Market Position Statements for other jurisdictions will be published in the coming months. A copy of the Victorian Market Position Statement is available at http://www.ndis.gov.au/market-position-statements
Background information
Current and future workforce in Victoria
| Service region |
Current Workforce |
Estimated Required Workforce |
|---|---|---|
|
FTE range |
FTE range |
|
|
Barwon |
950 – 1,150 |
1,900 – 2,350 |
|
Bayside Peninsula |
2,800 – 3,400 |
4,050 – 4,950 |
|
Brimbank Melton |
800 – 950 |
2,350 – 2,850 |
|
Central Highlands |
800 – 950 |
1,500 – 1,850 |
|
Goulburn |
550 – 700 |
1,150 – 1,400 |
|
Hume Moreland |
1,150 – 1,450 |
2,500 – 3,000 |
|
Inner East Melbourne |
2,150 – 2,650 |
2,500 – 3,050 |
|
Inner Gippsland |
750 – 900 |
1,500 – 1,850 |
|
Loddon |
950 – 1,200 |
1,750 – 2,100 |
|
Mallee |
400 – 450 |
750 – 900 |
|
North East Melbourne |
2,150 – 2,600 |
3,300 – 4,050 |
|
Outer East Melbourne |
1,700 – 2,050 |
2,400 – 2,950 |
|
Outer Gippsland |
300 – 400 |
750 – 950 |
|
Ovens Murray |
650 – 800 |
850 – 1,050 |
|
Southern Melbourne |
1,050 – 1,300 |
3,300 – 4,000 |
|
Western District |
800 – 1,000 |
1,200 – 1,450 |
|
Western Melbourne |
1,600 – 1,950 |
2,650 – 3,250 |
|
Total |
19,550 – 23,900 |
34,400 – 42,000 |
Source: Scheme Actuary
Current and estimated demand – disability clients and cost
| Service region |
Participants |
Cost ($ millions) |
||||||
|---|---|---|---|---|---|---|---|---|
|
Current |
Full Scheme |
Growth # |
Growth % |
Current |
Full Scheme |
Growth # |
Growth % |
|
|
Barwon |
4,100 |
5,900 |
1,800 |
44% |
120 |
280 |
160 |
133% |
|
Bayside Peninsula |
10,800 |
12,300 |
1,500 |
14% |
360 |
590 |
230 |
64% |
|
Brimbank Melton |
3,700 |
7,100 |
3,400 |
92% |
100 |
350 |
250 |
250% |
|
Central Highlands |
3,100 |
4,600 |
1,500 |
48% |
100 |
220 |
120 |
120% |
|
Goulburn |
2,500 |
3,500 |
1,000 |
40% |
80 |
170 |
90 |
113% |
|
Hume Moreland |
4,600 |
7,500 |
2,900 |
63% |
150 |
370 |
220 |
147% |
|
Inner East Melbourne |
7,600 |
7,700 |
100 |
1% |
280 |
360 |
80 |
29% |
|
Inner Gippsland |
3,300 |
4,600 |
1,300 |
39% |
100 |
220 |
120 |
120% |
|
Loddon |
4,000 |
5,300 |
1,300 |
33% |
130 |
260 |
130 |
100% |
|
Mallee |
1,700 |
2,200 |
500 |
29% |
50 |
110 |
60 |
120% |
|
North East Melbourne |
7,600 |
9,900 |
2,300 |
30% |
280 |
490 |
210 |
75% |
|
Outer East Melbourne |
5,700 |
7,700 |
2,000 |
35% |
220 |
350 |
130 |
59% |
|
Outer Gippsland |
1,500 |
2,300 |
800 |
53% |
40 |
110 |
70 |
175% |
|
Ovens Murray |
2,600 |
2,700 |
100 |
4% |
90 |
130 |
40 |
44% |
|
Southern Melbourne |
5,100 |
10,200 |
5,100 |
100% |
140 |
490 |
350 |
250% |
|
Western District |
3,200 |
3,500 |
300 |
9% |
110 |
180 |
70 |
64% |
|
Western Melbourne |
7,000 |
8,300 |
1,300 |
19% |
210 |
400 |
190 |
90% |
|
Total |
78,000 |
105,300 |
27,300 |
35% |
2,550 |
5,080 |
2,530 |
99% |
Source: Scheme Actuary – estimates of demand based on bilateral agreements