Statement 1: Budget Overview (Continued)
DisabilityCare Australia
The Government will provide $14.3 billion in additional funding over seven years from 2012‑13 to move to full implementation of DisabilityCare Australia (the national disability insurance scheme) by 1 July 2019. This includes the launch funding of $2.4 billion up to 1 July 2019, and new funding of $1.9 billion for transition to the full scheme over the first five years, $3.8 billion in 2017‑18 and $6.2 billion in 2018‑19. The Government will provide a total of $19.3 billion to DisabilityCare Australia over seven years from 2012‑13, inclusive of the redirection of existing disability funding.
DisabilityCare Australia will establish a national disability support system across Australia for people with significant and permanent disability to be jointly funded by Commonwealth, State and Territory governments. It will provide people with disability with choice and control over their support services and enhance their opportunities for social and economic participation.
Launch of DisabilityCare Australia
Building on the Government's commitment in the 2012‑13 Budget, DisabilityCare Australia will launch in four locations from 1 July 2013 and two locations from 1 July 2014.
The launch phase of DisabilityCare Australia will provide eligible participants with reasonable and necessary support tailored to their individual circumstances in South Australia (for children aged 0‑14 years), Tasmania (for young adults aged 15‑24 years), the Hunter region in New South Wales and the Barwon area of Victoria from 1 July 2013; and in the Australian Capital Territory and the Barkly region in the Northern Territory from 1 July 2014.
Over the three year launch phase from 2013‑14, around 26,000 people will benefit from DisabilityCare Australia.
Nationwide rollout of DisabilityCare Australia
Seven States and Territories have agreed to fully implement DisabilityCare Australia — New South Wales, Victoria, South Australia, Tasmania, Queensland, the Australian Capital Territory and the Northern Territory.
DisabilityCare Australia will provide full coverage in the Australian Capital Territory by 1 July 2016, in New South Wales, South Australia by 1 July 2018 and in Victoria, Tasmania, Queensland and the Northern Territory from 1 July 2019. The Government is committed to ongoing negotiations regarding full implementation of DisabilityCare Australia across the country to ensure that all Australians with significant and permanent disability receive the support they need. Once DisabilityCare Australia is fully implemented from 1 July 2019, around 460,000 people with significant and permanent disability will receive the support they need.
The Government will also provide general assistance to people with disability who are not eligible for an individual package of support, but who still experience barriers to social and economic participation.
Funding for the roll out of DisabilityCare Australia
DisabilityCare Australia will require a strong and stable funding stream to provide certainty and security. The Government will increase the Medicare levy by half a percentage point from 1.5 to 2 per cent of taxable income from 1 July 2014. This increase in the Medicare levy is expected to raise $20.4 billion between 2014‑15 and 2018‑19.
The money raised from the increase in the Medicare levy will be placed into a DisabilityCare Australia Fund (the Fund) for 10 years which will only be drawn upon to fund the additional costs of delivering DisabilityCare Australia. A fixed amount of the money flowing into the Fund each year will be set aside for the States and Territories. This amount will be $825 million in 2014‑15 (one quarter of the money estimated to be raised in that year). The annual amount allocated to the fund will be grown in future years by 3.5 per cent per year. Over 10 years, the States and Territories will be allocated a total of $9.7 billion.
DisabilityCare Australia is fully offset to 2023‑24 and beyond.
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