Prime Minister Malcolm Turnbull has described a disability services funding agreement struck with the NSW government as an expression of love and respect.
The state is the first to officially sign up to the full rollout of the National Disability Insurance Scheme.
Mr Turnbull says the guarantee of long-term funding shows love for NDIS participants who deserve and rely on essential services.
"The love that people with disabilities - the most vulnerable people in our community - the love that they deserve from all of us in this great national enterprise," he told reporters on the NSW Central Coast.
The NSW government has agreed its annual funding contribution to the NDIS, which exceeds $3 billion in 2018-19, will be escalated by four per cent a year to keep pace with population and price increases.
The Commonwealth will pay the balance of NDIS costs in NSW, under an agreement to take effect from July 1.
NSW Premier Gladys Berejiklian said the deal would ensure people with disability had greater choice and control over their lives.
"It is extremely humbling today to be able to do this, because not only does it secure the funding, but it also makes sure that the transition continues to be as smooth as possible," Ms Berejiklian said.
"This will change lives for the better into the future."
More than 84,000 people in NSW are already tapping into the NDIS, which is expected to eventually support about 140,000 people with disability in the state.
Social Services Minister Dan Tehan said the NSW government had provided a blueprint for the other states and territories.
"Negotiations with South Australia and Victoria are going extremely well. I look forward to also increasing the pace of those negotiations with the other states and territories," Mr Tehan said.
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