NSW's first female Premier, and the now federal Senator took a swipe at the government's $1.6 billion "saving" on the National Disability Insurance Scheme announced in the budget last week.

READ MORE: Shoalhaven likely to be hard hit by NDIS budget underspend

"It is farcical to imagine there is an underspend in disability services because the demand is not there," Ms Keneally said.

"We could go around the room and find a number of people with unmet needs."

She said the slow rollout of funds was just the tip of the iceberg.

"I heard from dozens of families, carers and service providers in Gilmore about unmet need, red tape, and a real lack of support," Ms Keneally said via Twitter.

"They are quite unimpressed with a Liberal projected surplus built off the back of a NDIS underspend."

Flagstaff CEO Roy Rodgers was not reserved in his criticism of the NDIS at the forum.

He said service providers were "drowning" in red tape.

"We are finding every year we no sooner we finish an annual plan, then we have to enter that again," Mr Rodgers said.

"A second-year plan is coming up, and we're getting asked, 'Has this person got a disability?' Well yeah, they've had a disability for the past 25 years. What's changed?

"'We can't find the paperwork, sorry.' Well just go and talk to the person. We have to do this year on year on year.

"All we want to do is provide a great service and a great life for the person in our community.

"The way we have to do the plans is nonsense, we should be doing plans in a way that gets set. If the person's circumstances change, then yeah, put a review in. We're all running around like chooks with our heads cut off trying to sort out problems for our participants...and we don't get to provide the right amount of support."