Ahead of the final day of a snap inquiry into broad reforms aimed at reducing the cost of the $56 billion support program, the head of disability provider Aruma said adjustments were needed to avoid putting unnecessary strain on disabled Australians.
Under the proposed changes, the government plans to move about 160,000 people off the scheme and onto other yet-to-be-built supports to be run by the states.
All participants' eligibility will be re-assessed based on how much their disability impacts their day-to-day life. Aruma said it broadly supported the changes but the re-assessment was unnecessary, particularly for those with lifelong disability, children in out-of-home care and people receiving supported independent living.
"For all three cohorts, subjecting participants to a comprehensive functional capacity assessment serves no purpose. Their disability is established, permanent and not in dispute," the provider's submission reads.
"For (people with a lifelong disability living in the community), a full functional capacity reassessment is clinically unnecessary and potentially harmful."
Aruma's chief executive is Martin Laverty, who helped design the NDIS and was an inaugural director of the National Disability Insurance Agency.
The company also raised concerns about sweeping powers which allow the minister responsible for the scheme to set funding and staffing levels for specific supports under the NDIS, while reducing participants' rights to appeal.
Aruma is among a number of providers, advocacy groups and government agencies - including the health department, National Disability Insurance Agency, NDIS Commission and Department of Social Services - scheduled to give evidence on the final day of a snap inquiry into the overhaul.
On Wednesday, agencies responsible for tackling fraud in the NDIS said requirements for stricter record keeping and provisions allowing authorities to intervene sooner would help them crack down on dodgy providers.
"Before we started this journey, you could submit a claim with no ABN at all, no text description, no evidence at all, just a dollar value, and potentially that claim would be paid. In fact, in all bar a few cases per day, that claim would be paid," the scheme's integrity chief John Dardo told the inquiry.
But advocates warned the changes would leave many disabled Australians without the support they need to work and socialise.
"When disabled people die as a direct result of this bill - and they will - their blood will be on your hands," said actor and disability advocate Hannah Diviney, who has cerebral palsy and uses a wheelchair.
"How do I know people will die? Because you have made it impossible for them to live in so many ways.
The government hopes to pass the changes into law before parliament rises for the winter break in July.
