Daniel Andrews demands care fund payback

Victoria is owed millions of dollars raised by the Medicare Levy increase, which it says was promised by Tony Abbott.

Daniel Andrews has written to Malcolm Turnbull demanding money from the Disability Care Australia Fund.

Victoria is owed tens of millions of dollars raised by the increase in the Medicare Levy which it says was promised by Tony Abbott before his government was rolled, adding another layer to a national squabble that threatens the $22 billion disability insurance scheme.

Victorian Premier Daniel ­Andrews has written to Malcolm Turnbull following Friday’s icy disability ministers meeting demanding money from the Disability Care Australia Fund but rejecting an offer to share more of the financial risk of cost overruns.

Victoria was to have received at least $44 million from the DCAF fund in 2016-17, $45.6m the next year and $129.7m in 2018-19.

“The Victorian government’s strong commitment to the scheme is evidenced by our willingness to quickly reach agreement on transition arrangements with the commonwealth to give certainty to clients (and) the sector,” Mr ­Andrews wrote.

“Victoria did so on the understanding that it would receive its DCAF funding in accordance with parameters agreed with the former prime minister and the payment schedule in my previous letter to you.

“Victoria will not accept a greater share of the risk of scheme cost overruns … in exchange for full access to its DCAF funding from 2016-17 onwards.”

A spokesman for federal Social Services Minister Christian Porter told The Australian there could be “no unilateral” action by the commonwealth on the program.

“It would be counter-­productive if one state is able to hold the efficient running of the scheme to ransom by exercising an effective power of veto over minor ­administrative matters,’’ he said.

“The proposed changes to governance will not enable the commonwealth to change scheme design, eligibility requirements or the definition of reasonable and necessary supports. Claims to the contrary are completely false.”

West Australian Disability Services Minister Helen Morton said WA had no problem with taking a 50:50 split on cost overruns, if it was given control of their scheme.

“The biggest risk in governance changes for WA would be if the commonwealth would be able to implement scheme rules that the state would then have to ­adhere to, given we want a state-administered rollout,” Ms Morton said.

Although WA has not agreed to roll out the NDIS in full but is trialling the scheme next to its own state-run system, Ms Morton said she was ready to make a decision on the future without promised evaluations.