Federal government set to fund 82pc of the NDIS

Increasing the states’ funding of the National Disability Insurance Scheme is ‘simply not within the capacity of state governments’, SA Premier Peter Malinauskas has said.

South Australian Premier Peter Malinauskas. Picture: NCA NewsWire / Emma Brasier

Increasing the states’ funding of the National Disability Insurance Scheme is “simply not within the capacity of state governments”, South Australian Premier Peter Malinauskas has said, after Anthony Albanese confirmed the commonwealth was on track to fund 82 per cent of the scheme within a decade.

Mr Malinauskas said that demands in healthcare across the country meant fronting up a greater contribution towards the NDIS was not possible for any state, “maybe with the exception of Western Australia”.

His comments sparked frustration in the west, with a WA government spokesman hitting back at the suggestion the resource-rich state could contribute funding where other jurisdictions could not.

“Western Australia already subsidises spending in other states through the GST deal,” he said. “We reject any suggestion that WA should absorb NDIS cost increases on behalf of other states.”

While originally envisaged as being funded through a 50/50 split between the states and the commonwealth, the costs of the NDIS are now largely covered by the federal government, which puts up 66 per cent of the necessary funding.

The Prime Minister on Friday said federal funding was on track to hit 82 per cent at the end of the decade, and the commonwealth was “not proposing to change that”.

It follows the Albanese government unveiling a $720m package ahead of the budget that it said would rein in the annual growth of the NDIS over time by making the scheme more efficient and cracking down on rampant price-gouging of NDIS participants by service providers.

The funding is hoped to halve the annual growth of the NDIS to 8 per cent by 2026, with Mr Albanese warning that, without such reform, the scheme would blow out to cost almost $100bn within 10 years.

But ACT Disability Minister Emma Davidson broke ranks from Chief Minister Andrew Barr to slam the federal government’s 8 per cent growth target, which she said was “offensive”.

“National cabinet’s decision on NDIS investment is heartbreaking,” Ms Davidson, a Greens MP, said in a video on her Facebook page. “Let me be very clear about this; the federal government wants to reduce costs in the NDIS, they’ve picked a target number and states and territories have been asked to agree … without discussion on the number the commonwealth picked.”

Mr Barr did not back his minister and said the ACT government “supports the goal of long-term sustainability for the scheme”.

“A sustainable growth trajectory for the NDIS will support ­equity and fairness for all Australians living with disability, including for those not eligible for the NDIS, and ensure that every dollar goes to those who need it most,” he said on Monday.

NDIS Minister Bill Shorten demanded Ms Davidson explain why she had broken ranks from Mr Barr. “The Chief Minister endorsed the communique, so Minister Davidson needs to explain why she is on a different page,” he said. “The NDIS is here to stay, it’s demand driven, but we do want to make sure that it’s run in the best interest of participants and every dollar gets to where it’s meant to.”

NSW Minister for Disability Inclusion Kate Washington said NSW would work with other states and the commonwealth “to secure the sustainability of the NDIS”.

“172,000 residents in NSW receive life-changing supports under the NDIS, and that number will continue to grow,” she said.

“The Minns Labor government is committed to fun­damentally improving disability inclusion.”