(image via Northern Beaches Council)
The Federal Government has moved to close a $55 billion gap in funding for Australia’s National Disability Insurance Scheme.
In his Budget Speech, Federal Treasurer Scott Morrison announced that the funding gap of $55.7 billion which existed over the next ten years would be closed by legislating to increase the Medicare Levy by 0.5 percentage points in two years’ time.
Under the plan, the Medicare Levy will be raised from two percent now to two and a half percent on 1 July 2019.
Money raised will be placed within the NDIS Savings Fund and will be protected to meet the needs of the NDIS scheme, which at its peak will support around 460,000 people at an annual cost of approximately $21 billion.
The increase will raise $3.55 billion in revenue from the first year, rising to $4.25 billion by 2021.
The government will also provide:
- $209 million to establish an NDIS Quality and Safeguards Commission to oversee the quality of NDIS providers and enforce the rights of participants.
- $33 million over three years to help service providers within the disability and aged care sectors to expand their workforce.
- $80 million for Australians with mental illness such as severe depression, eating disorders, schizophrenia and post-natal depression resulting in a psychosocial disability, including those who had been at risk of losing their services during the transition to the NDIS.
Whilst Morrison’s move to delay the implementation of the Medicare Levy rise is no doubt partially motivated by a desire to potentially delay this increase until after the 2019 election, he argues that the delay will mean the increase is more effectively matched with the timing of increased NDIS payments and would provide the government with further time in which to demonstrate the scheme’s value.
He says responsibility to ensure the viability of the program rests with all Australians.
“To ensure the NDIS is fully funded we will legislate to increase the Medicare Levy by 0.5 percentage points in two years’ time, when the extra bills start coming in,” Morrison said.
“This will also provide further time to explain to Australians what the NDIS will deliver.
“Even if we are not impacted directly, this is all our responsibility.
“Our decision to increase the Levy reflects the fact that all Australians have a role to play.”
Disability People’s Organisations Australia Director Therese Sands welcomed the commitment to fully fund the NDIS but hit out at welfare changes announced in the budget.
Under these changes, mutual obligation requirements will be strengthened so that those who fail to meet their responsibilities in terms of failing to attend appointments or accepting suitable employment will face escalating penalties ranging from reduced to cancelled payments.
Under the changes, being impacted by drug or alcohol will no longer be accepted as an excuse for repeat offenders in terms of why they were unable to meet mutual obligation requirements.
A modest drug testing trial will also be introduced for 5,000 new welfare recipients, with those who test positive being placed on the Cashless Debit Card for welfare payments and be subjected to further tests as well as possible referral for treatment.
Welfare would also be denied for those with a disability which is caused solely by their own substance abuse.
Sands said the increase in mutual obligations was harsh and unfair, whilst the expanded use of the welfare card would be demeaning for those to whom it applied.
