What does the NDIS replace?
In 2011 the Productivity Commission (PC) described the existing disability system as ‘underfunded, unfair, fragmented and inefficient’ and failed to provide essential supports and services to a majority of people with significant disability. The Productivity Commission recommended the existing system be replaced with a unified national scheme to fund long-term, high-quality care and support for all Australians who experience significant disability. The federal government subsequently began working with states and territories to establish the NDIS.
The insurance scheme model aims to replace a large percentage of the existing disability system at state, territory and federal levels across Australia. Prior to the full implementation of the NDIS the National Disability Agreement (PDF) articulates the responsibilities of levels of government in relation to the provision of disability services and meeting the objectives of the Agreement.
The Agreement articulates that the state and territory governments are responsible for the provision of specialist disability services. These services include accommodation support; respite; community access; community supports such as therapy and early intervention; advocacy; and information services for people with disability.
The Commonwealth Government has responsibility for employment services for people with disability and provision of funding to support states and territories to achieve the objectives as outlined in the National Disability Agreement.
Source - Parliamentary Library NDIS Quick Guides