Feasibility of Starting Up a Business Targeting Disabilities (Data)

Starting a new business can be both daunting and exciting. There are tons of practical things to consider; including: market size, location, size of business, quality control and so on. Investing in the NDIS sector is no different. In this article, we look at various statistics that prospective investors in Australia’s disability market should consider.


NDIS Roll-out and Market Growth

Any prospective investor in the NDIS sector needs to be aware of the extent of coverage by the scheme in various Australian states and territories.According to the 2018 to 2019 budget, NDIS spending is designated to rise from $7.8 billion to almost $24 billion in the 2021 to 2022 period.

A recent report by COAG Disability Reform Council indicates that NDIS roll-out is on track to cover all eligible Australians by 2020 – which estimates put at more than 460,000. As of June 2018, NDIS was deemed fully operational in New South Wales, Australian Capital Territory and South Wales. The figure below is courtesy of the COAG report. It shows the proportion of each State/Territory population who are able to seek access to the NDIS, if eligible.


Directorati Pty published a report in mid-December 2017 titled, “Small Business NDIS Experience Report”. It surveyed existing NDIS providers and the service group they work in. Of the several service groups identified by the NDIS, most providers seemed to be drawn to the “Improved Daily Living Skills” service group as you can see from the figure below (courtesy of Directorati Pty Ltd.)


Since the market is still growing, the figure above can help you identify service groups to invest in.

Growing Client Confidence in the Scheme

As someone looking to invest in this sector, it is important that you understand the public’s confidence in the scheme.

A September 2018 report by Health Dispatch Australia, demonstrated that the confidence in NDIS is surging steadily. As of end of June 2018, the NDIS reported that the number of participants it supports stood at 183,965 Australians – representing a 13% increase compared to the previous chapter. Out of these participants, more than 55,000 had never received any government support before the NDIS. Health Dispatch also notes that 71% of the scheme’s participants aged 25 and over, say the scheme has improved their quality of daily living activities while 88% rated their experience positively.

What about Providers?

Like any business sector, a growing market attracts more suppliers; or in this case, providers. As of end of June, the number of providers in the marketplace was 17,000; which represents a 17% rise compared to the prior quarter.

As you can see from the graph below (courtesy of COAG Disability Reform Council), the number of participants has been growing rapidly since the scheme’s inception.

Parting Shot

From a business standpoint, the numbers are encouraging; however, the sector is still young and there is a lot of room for improvement. With continue government and stakeholders’ support, the NDIS marketplace is poised to become very vibrant, diverse, stable and prospective – offering tons of opportunities for both existing and new providers.

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