Disability scheme promises honoured

THE Coalition has kept the NDIS funding and timeline as promised.

Tony Abbott at the opening of the National Disability Insurance Agency headquarters in Geelong last month.

THE Coalition kept the National Disability Insurance Scheme funding and timeline as promised in the federal budget and allowed more than $44 million to remain in place that would have been removed under a botched application of an efficiency dividend.

The administrative error, made under the previous Labor government, would have applied not just to the National Disability Insurance Agency but also to ­support packages for people with disabilities.

Joe Hockey did not mention the landmark insurance scheme in his speech last night and, in reality, there was little room to change its delivery schedule or funding envelope in this budget cycle.

The trial locations over the next few years have all been signed and committed to by every state and territory and any decision to delay the full rollout, due in 2019, won’t be made until after the scheme’s board considers a report from KPMG later in the year.

The scheme is still billed as a “contingent liability” with an “unquantifiable” impact on the budget bottom line into the future.

The NDIS expenses were expected to grow “substantially” over the forward estimates, “reflecting the increase in numbers of people with disabilities entering the scheme as it moves towards full coverage”.

The government estimated a total of $17.4 billion in expenses over the forward estimates and would contribute $8.4bn, beginning with $408m in the coming financial year and rising to $5.2bn in 2017-18.

The DisabilityCare Australia Fund will begin in July, filled with funds raised from the half a percentage point rise in the Medicare levy. In 2014-15, $825m will be made available to states and territories with NDIS trials.

It emerged in the budget that the former Labor government had included a disadvantage clause in its negotiations with the states and territories to ensure the smaller states — South Australia, Tasmania and the ACT — were not worse off after the Commonwealth Grants Commission 2015 Methodology Review, due in February. The review, which would determine how disability services are treated for GST distribution purposes, will decide whether NDIS funds are included or not.

The former government committed to provide “temporary, untied financial assistance to some jurisdictions that expect to have their GST entitlements adversely affected”.

Budget documents did not specify the nature of the risk but said it would not become apparent until after the review.

The government would not be liable for any potential costs before 2016-17.

The Coalition also provided $900,000 over four years to establish and run a Disability and Carers Industry Advisory ­Council, co-chaired by a “respected industry expert” and Assistant Social Services Minister Mitch ­Fifield.

It will provide advice to the government on proposed legislation and policies affecting the disability and carer sectors.

Prime Minister Tony Abbott previously announced new NDIS trials would begin in Western Australia, the Northern Territory and the ACT in July.