Commonwealth of Australia Explanatory Memoranda

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NATIONAL DISABILITY INSURANCE SCHEME AMENDMENT BILL 2016

                       2013-2014-2015-2016




   THE PARLIAMENT OF THE COMMONWEALTH OF AUSTRALIA




                 HOUSE OF REPRESENTATIVES




NATIONAL DISABILITY INSURANCE SCHEME AMENDMENT BILL 2016




                 EXPLANATORY MEMORANDUM




                  (Circulated by the authority of the
     Minister for Social Services, the Hon Christian Porter MP)
    NATIONAL DISABILITY INSURANCE SCHEME AMENDMENT BILL 2016


OUTLINE

The National Disability Insurance Scheme (the NDIS) was established by the
National Disability Insurance Scheme Act 2013 (the NDIS Act). The NDIS Act also
establishes the National Disability Insurance Scheme Launch Transition Agency
(the Agency) to administer the NDIS, and provides for a Board to ensure the proper,
efficient and effective performance of the Agency's functions, and to determine the
objectives, strategies and policies of the Agency.

This Bill will increase the maximum number of Board members of the Agency from
nine to 12 members, including the Chair, and changes the quorum arrangements for
Board meetings so it is clear that a quorum is the majority of members of the Board.

The current size of the Board does not allow for the diversity and strength required of
a Board managing a rapid increase in NDIS participants, as will occur during
transition to the full scheme over the period 1 July 2016 to 30 June 2019.

Financial impact statement

This measure will cost $0.8 million over the forward estimates.


STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

The statement of compatibility with human rights appears at the end of this
explanatory memorandum.
    NATIONAL DISABILITY INSURANCE SCHEME AMENDMENT BILL 2016


NOTES ON CLAUSES

Clause 1 sets out how the new Act is to be cited - that is, as the National Disability
Insurance Scheme Amendment Act 2016.

Clause 2 provides a table setting out the commencement arrangements for the
various provisions in the new Act.

Clause 3 provides that the Act specified in the Schedule is amended or repealed as
set out in that Schedule.




                                          1
                            Schedule 1 - Amendments


                                     Summary

This Schedule amends the National Disability Insurance Scheme Act 2013
(the NDIS Act) to allow for up to 11 members to be appointed to the Board of the
National Disability Insurance Scheme Launch Transition Agency (the Agency),
and to change the quorum arrangements for Board meetings so it is clear that a
quorum is the majority of members of the Board.

                                   Background

The Council of Australian Governments agreed in April 2015 that there was a need
to strengthen the governance arrangements of the Board of the Agency. This is to
ensure the Board is best equipped to administer the challenges associated with
managing the transition of the National Disability Insurance Scheme to the full
scheme.

                           Explanation of the changes

Amendments to the NDIS Act

Item 1 amends section 126 by increasing the number of Board members the Minister
has the power to appoint from eight to up to 11 members, in addition to the Chair.

As provided by section 127, the Minister must seek the support of all the states and
territories to appoint a Board member other than the Chair, and be satisfied that the
appointment is supported by the Commonwealth, states and territories. The Minister
must consult states and territories about the appointment of the Chair.

Item 2 makes a consequential amendment to subsection 138(1) to change the
quorum requirements from five members of the Board to a majority of members of
the Board.




                                         2
            STATEMENT OF COMPATIBILITY WITH HUMAN RIGHTS

                    Prepared in accordance with Part 3 of the
                  Human Rights (Parliamentary Scrutiny) Act 2011

          National Disability Insurance Scheme Amendment Bill 2016

This Bill is compatible with the human rights and freedoms recognised or declared in
                 the international instruments listed in section 3 of the
                   Human Rights (Parliamentary Scrutiny) Act 2011.

Overview of the Bill

This Bill will increase the maximum number of Board members of the National
Disability Insurance Scheme Launch Transition Agency from nine to 12 members,
including the Chair, and to change the quorum arrangements for Board meetings so
it is clear that a quorum is the majority of members of the Board.

The current size of the Board does not allow for the diversity and strength required of
a Board managing a rapid increase in National Disability Insurance Scheme
participants, as will occur during transition to the full scheme over the period
1 July 2016 to 30 June 2019.

As currently provided, the Minister must seek the support of all the states and
territories to appoint a Board member other than the Chair, and be satisfied that the
appointment is supported by the Commonwealth, states and territories. The Minister
must consult states and territories about the appointment of the Chair.

Human rights implications

This Bill does not engage any of the applicable rights or freedoms.

Conclusion

This Bill is compatible with human rights as it does not raise any human rights
issues.




         [Circulated by the authority of the Minister for Social Services,
                          the Hon Christian Porter MP]

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