Govt now ties childcare to NDIS funding

The Turnbull government is piling more pressure on the Senate to pass its childcare subsidy overhaul by using accompanying welfare cuts to help pay for the national disability insurance scheme. Treasurer Scott Morrison on Monday announced the second prong of the government's strategy to pass an omnibus bill through parliament, saying the $3 billion in welfare cuts above what's needed to pay for extra childcare fee subsidies will go to the NDIS. It means there will be about $5 billion quarantined specifically for the scheme by the end of 2020. "(The bill's) passage will result in more funding for child care for hard-working Australians and their families and provide even greater assurance about the future of the NDIS," Mr Morrison told reporters on Monday. The government has tied its overhaul of childcare subsidies to 16 welfare cuts, including phasing out the annual Family Tax Benefit supplement but increasing the fortnightly payment by about $20, and forcing under-25s off the dole and on to the lower youth allowance. The total bill is expected to save more than $5 billion while the extra childcare subsidies will cost about $1.6 billion. The government informed Senate crossbenchers, Labor and the Greens about its new plans for the rest of those savings on Monday.

NSW has signed a long-term deal with the federal government to roll out the NDIS. Source: AAP