The National Disability Insurance Scheme (NDIS) will be in the Blue Mountains region from July 1 for children aged 17 and under - a year ahead of schedule.
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The NDIS is being introduced in this region as part of an early rollout of the scheme, after being trialled in several sites, including the Hunter.
The federal and NSW governments signed the agreement to begin the early rollout of NDIS in the Nepean/Blue Mountains area at a forum in Penrith on May 19. It was attended by more than 150 representatives from more than 50 local organisations that work with children with disabilities.
Organisers of the scheme say NDIS will initially help young people, their families and carers to get ready for the scheme through community engagement forums and assistance with access and planning.
From September, up to 2000 children will gradually phase into the scheme, receiving individual plans. The focus is on early intervention, with a view to helping them attend mainstream schools.
Federal Member for Macquarie, Louise Markus, said the announcement was "great news for families in the Hawkesbury and the Blue Mountains who will get the support they need".
"This scheme will make a real difference in the lives of local children and families, which is why I'm so pleased that the 2015 Budget committed $20 million to bringing the NDIS to Greater Western Sydney," she said.
Federal assistant minister for Social Services, Mitch Fifield said: "We know this is a high-needs area when it comes to early intervention services for children with disability, which is why it's great we're able to rollout the scheme a year ahead of schedule here."
Labor spokeswoman for Macquarie, Susan Templeman, said that while the continued rollout of the NDIS beyond the first trial sites was welcome, the concerns of those working in the sector must be listened to.
"Labor created the NDIS to transform the way people with disability access the support and care they have waited so long for.
"Done right, the NDIS is also an important economic and social reform that will create jobs and unlock the potential of thousands of people with disability and their carers but it will only work if the lessons of the Hunter trial are applied in the Blue Mountains."
Meanwhile the union has also expressed concerns about the scheme.
Thane Pearce from the Public Service Association of NSW (PSA) said they have "grave fears for the proposed roll out of the NDIS in western Sydney and the Blue Mountains".
"The trial has not yet finished in the Hunter and until issues are fixed, rolling out elsewhere could disadvantage those with disabilities that might benefit from the scheme," Mr Thane said.
He added "the rollout ... is about cutting public services, deleting jobs and the loss of specialist services".
"The privatisation of disability services will lead to a workforce and service delivery crisis in our region".
A motion of no confidence was passed by PSA Penrith delegates after the Baird Government announced in March the early rollout of the NDIS in the Nepean and Blue Mountains.
The early roll-out also relates to the Hawkesbury, Lithgow and Penrith areas. It should be rolled out across NSW from 2016.
Existing national and state-based services and supports will continue until eligible people start their plan with the NDIS. To access the NDIS people must be: aged 17 years and under and have an impairment or condition likely to be permanent and stops them from doing everyday things for themselves, need support now that will reduce their need for support in the future, or be aged under six with developmental delay.