Omnibus bill’s link to NDIS worries crossbenchers

There are new signs the government’s omnibus bill is in trouble amid concerns over its links to the NDIS.

There are new signs the government’s omnibus bill is in trouble amid concerns over its links to the National Disability Insurance Scheme, as David Leyonhjelm and Cory Bernardi warn against directing savings into “another extravagant spending program”.

The conservative crossbench senators saidthey had been open-minded about the bill, which saves $4.3 billion over the forward estimates, until the government made a surprise pledge to divert $3bn of its savings to the NDIS.

“They’ve presented the package, which was designed to save money for taxpayers,” the newly independent Senator Bernardi said.

“Since then they’ve said they’ll use savings to fund another extravagant spending program. That puts a different perspective on things. I want to save taxpayers money.”

Senator Leyonhjelm, who was thought to be the only crossbencher to support the bill, said a line needed to be drawn under the NDIS. “The NDIS is policy based on compassion; it’s a blank cheque. I think they were counting on my support and indeed they would’ve got it had they not said ‘We’re not going to put these savings into the bottom line’,” the Liberal Democrat said.

The Grattan Institute last night released a report arguing that a cut in the company tax rate before the budget recovered risked reducing future living standards.

The think-tank calls for a mix of alternative policies to encourage investment and infrastructure projects.

Criticism from Senators Bernardi and Leyonhjelm of the omnibus bill, which winds back Family Tax Benefit payments to pay for childcare reform, presents yet another dilemma for the government as it attempts to claw back savings while balancing a myriad of crossbench demands.

Nick Xenophon, who leads a crucial bloc of three Senate crossbenchers and one lower house MP, said he expected there would be meetings with the government on the legislation this week.

While he opposed the savings measures contained within the bill in the previous parliament - a number of which were from the contentious 2014 budget - he said his party was looking at them again “as a team”.

“There are three sets of fresh eyes in addition to my bleary eyes,” Senator Xenophon said.

“While we’re still talking (with the government) anything can happen.”

Senator Cormann signalled the government may have to come up with a Plan B to legislate savings but declared he was not prepared to “put up the white flag” and would persist to get as many of the measures through as possible.

“If we are not able to secure all of the spending reductions that are currently reflected in the bill then our intention would be, as we did with the first omnibus savings bill, to achieve the same savings by spending reductions in other parts of the budget,” Senator Cormann told Sky News’ Sunday Agenda program.

“These conversations are still live, they’re still ongoing.”