Spend now to create long-term savings

BRUCE Bonyhady's message for governments: if you spend on the disability scheme now, you will save later, and save big.

BRUCE Bonyhady has one message for state and federal of governments: if you spend on the disability scheme now, you will save later, and save big.

The chairman of disability support organisation Yooralla has disabled children and has fought hard for the scheme. He says all options for its long-term funding should be on the table.

"Disability is a long-term issue and for too long we've treated it as a short-term issue and not funded it appropriately," Mr Bonyhady said.

He said if governments decided the existing tax take was not enough, they should look at the most efficient way of raising the additional revenue -- a levy or something else.

"The Productivity Commission looked at the levy idea," he said.

"It was not their preferred option but that's certainly an option."

Mr Bonyhady said disability should be one of the first things funded by governments, not the last.

"Within the existing tax base, it should be given a bigger priority," he said. "The thing that is disappointing here is the amount that is up for discussion -- $110 million over three years -- is not only tiny relative to total expenditures by the commonwealth and NSW and Victoria, but it can't be compared with the long-term fiscal benefits that will come from this scheme."

Without implementing the scheme, disability expenditure would rise to about $40 billion a year, he said.

"This scheme will therefore not just deliver social and economic benefits to people with disabilities, their families and carers and the nation, it will make disability fiscally sustainable."

He said the commonwealth had put $1bn on the table and if governments did a cost-benefit analysis on this, they would be "eager to find the extra funds now because the long-term payback, socially, economically and fiscally from this is huge".

In 2010, Mr Bonyhady received an Order of Australia for his service to people with disabilities, their families and carers, particularly as chairman of Yooralla, and to the community as a contributor to charitable organisations.