Labor rejects NDIS funding shortfall

Labor has rejected suggestions it failed to provide the money needed to fund a fully ramped-up NDIS. (AAP)

Federal Labor says it would have been able to fund the commonwealth's share of the fully rolled-out national disability insurance scheme.

Federal Labor has rejected suggestions it failed to provide the money needed to fund a fully ramped-up national disability insurance scheme.

The NDIS, which finances support services for people with disabilities and their families, is forecast to cost about $22 billion annually once it is fully operational from 2020, with the cost divided between the commonwealth and the states.

Opposition disability reform spokeswoman Jenny Macklin says Labor proposed the commonwealth's share would be funded by means testing the private health insurance rebate, reforming retirement incomes and unspecified long-term structural savings.

Social Services Minister Christian Porter has said the government remains fully committed to implementing the NDIS and was working to provide the scheme with sustainable support from budget savings.

The main funding, the increase in the Medicare levy from 2 per cent to 2.5 per cent, and cuts to other disability programs will only cover its cost to 2016-17.

"We are not funding the NDIS gap from borrowings or by raising more income tax or any other general levy," Mr Porter told The Australian.

Ms Macklin said the government was misleading the Australian people by suggesting it can't afford the cost of the NDIS.

"It is a disgraceful attempt to undermine the scheme and increase uncertainty over its future," she said in a statement.

President of People with Disability Craig Wallace said it was always known the increased Medicare levy would not raise the full amount needed to fund the scheme.

"What I do think we're missing from some of the commentary though is actually taking into account the fact that the NDIS is going to be resulting in savings downstream as more people with disabilities enter the workforce," he told Sky News.

Source: AAP

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