Mr Bonyhady is a former senior executive in the funds management industry – running one of the largest funds management operations in the country - and a former Treasury official but would not meet the particular criteria set down.

Other board members have experience in motor accident insurance systems and disability services but not necessarily at board level.

It is understood that the board only found out about the ad – placed in Friday's Financial Review - by happenstance late on Thursday night.

They were then contacted by an official in the NDIS agency who told them they would each be contacted by the Department of Social Services "to discuss the process". But none had been contacted by Friday morning. Mr Bonyhady is in Sweden at a Carers conference.

Disabilities Minister Mitch Fifield said the terms of all existing board members were due to expire next August. He said a natural process of reappointment was under way and the chairman had been advised about six weeks ago.

"Let's be clear the board is not being spilled," Mr Fifield told reporters in Melbourne on Friday.

"What we're seeking to do is to have a board that is a mix of current members and also new members," he said.

"This is an extremely important project. We're moving from the trial phase of the scheme to full national roll-out. And it's important that we take the opportunity to make sure that we have the best possible board with the right skill sets."


Mr Fifield accused Labor of spreading "baseless lies" by suggesting there was something odd or untoward occurring in relation to the board while questioning the government's commitment to the full roll out of the NDIS.

He also praised existing directors and invited them to reapply.

"The chairman has done a sensational job," he said.

"It would be fair to say that the NDIS probably would not have come to fruition if not for the work of Bruce Bonyhady as chair and also John Walsh, who was a board member who's been one of the intellectual drivers behind the initial concept of the NDIS."

Government sources insist that the board is not being sacked and the ads have just been placed because the current director's terms expire in the middle of next year.

"So we need a process for board appointments", a source said. "Each jurisdiction [the NDIS is a joint project with the states and territories] has agreed to a process involving a search firm to come up with a short list which all jurisdictions will consider. Any board appointments need the support of jurisdictions."

The sources say current board members are "welcome to apply" and suggest there will be a balance between new and existing board members in the interests of continuity.

They argue that the criteria list for experience in the ad is specified in the act and applied to the first appointments but there seems to have been a suggestion emerging on Friday morning that the ad should was poorly worded and should only have listed the required board experience as a possible inclusion.


Opposition disability spokeswoman Jenny Macklin said the move "will jeopardise the full implementation of the NDIS".

"The current board has been responsible for its successful launch. The latest quarterly report showed now successful the trials have been and this just shows the Abbott Government has zero commitment to people with disabilities".

Ramping up the pressure on the government on the issue, Opposition Leader Bill Shorten and Ms Macklin subsequently accused the government of "threatening the rollout of the NDIS on time and in full as promise"

"Today's move further erodes the confidence of people with disability and their carers in this government's capacity and will to deliver the NDIS on time and in full", they said.

"Currently, the Board of the NDIS, including the Chair, is made up nominees from each of the states, and is representative of people with disability.

"To maintain the NDIS as a truly national scheme, the NDIS board must be reflective of the jurisdictions that are involved. Above all, the NDIS Board must continue to include people with disability, the architects and beneficiaries of the NDIS."

"Today's effort from Tony Abbott is just the latest attempt to erode the voice, advocacy and support for people with disability. Instead of getting on with the rollout of this transformative scheme, Tony Abbott is focussed on getting jobs for his mates in big business."

The disability sector has become very wary of the government, despite its professed commitment to it, after the sacking of the Human Rights Disability Commissioner Graeme Innes, cuts to the Disability Support Pension and the cuts to disability services and supports over the last two years.


Agreements with states and territories for the escalation of the scheme from trial sites to full coverage were due to be signed last month but have been the subject of continuing delay. The first of these agreements - with NSW - has been delayed for reasons that are unclear for several weeks. There had been a widespread expectation that Prime Minister Tony Abbott and NSW Premier Mike Baird would sign the deal this week.

The government has been trying for some time to persuade some NDIS board members to leave early, arguing this will allow a gradual transition of board members, rather than a complete changeover.

Sources within the NDIS said on Friday the board was responsible for safe guarding the NDIS and ensuring that it is delivered on time and on budget.

"To date the NDIA Board has done exactly that. The scheme is on time, on budget and achieving a high level of client satisfaction.

"The current Board has demonstrated a deep understanding of the Scheme and its sustainability. Lived experience of disability is critical to the good governance and success of the Scheme. Two members of the current Board are people with disability and a further four members have lived experiences of disability.

"To now seek a wholesale clean-out of the Board, by primarily seeking non-executive directors with big company experience, risks the future success of the NDIS."

Current board members and qualifications