Federal officials will make the case for major changes to the $50 billion National Disability Insurance Scheme at a meeting with their state counterparts, with the reforms expected to form the centrepiece of Treasurer Jim Chalmers’ budget savings.
Ahead of a major speech outlining efforts to cut the spiralling cost of the support program, Health Minister Mark Butler will team with Dr Chalmers to brief state treasurers on Labor’s plans.
The virtual meeting on Tuesday is designed to be a “heads up” for state treasurers before the changes are announced publicly.
The states have a financial interest in getting the massive disability scheme on a more even financial keel, Prime Minister Anthony Albanese said.
“The states agreed, as part of the health funding agreements, that they would contribute up to eight per cent of the growth,” he told the ABC’s 7.30 program on Monday night.
“So they have a stake in making sure that this system is sustainable.”
Mr Albanese insisted he was “not talking about cuts”, but wanted to crack down on waste and manipulation by dodgy operators.
“I want to see an Australia where every Australian is proud of the NDIS,” he said.
The planned disability overhaul would be the most important part of the government’s savings to be handed down in the federal budget on May 12, Dr Chalmers told reporters on Monday.
Opposition Leader Angus Taylor has flagged a willingness to work with the government to bring down the cost of the scheme.
Liberal frontbencher Andrew Bragg said Labor should consider means-testing – where a person’s income is used to determine how much they pay for government services – to reduce NDIS spending.
“I think it’s crazy that we have programs that aren’t means-tested,” he told ABC News.
“I think in general, we need to see more means-testing across the board.”
Mr Albanese has ruled out means-testing the NDIS.
Mr Butler is expected to use his address to the National Press Club on Wednesday to outline details of his plan to reduce the growth in NDIS costs from about 10 per cent to the government’s target of five to six per cent.
Greens leader Larissa Waters said the push to cut disability spending was revolting and urged the government to instead offset the scheme’s cost by increasing taxes on gas companies.
“It is the wrong call to deprive disabled people and their families of support while you let the greedy gas companies not pay their fair share of tax,” she told reporters.
“What is wrong with this government that they can’t see the moral failing in that decision?”
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