Treasurer Jim Chalmers has warned that states face missing out on billions of dollars in federal hospital funding should they refuse to support the Albanese Government on its National Disability Insurance Scheme reforms. Source: The Australian.
Health and Disability Minister Mark Butler’s announcement that NDIS eligibility would change by mid-2027 and a new $2 billion program for autistic children would be created was met with shock and outrage from state governments.
The NSW Labor Government said the announcement represented a “significant change” to an in-principle deal to reform the NDIS agreed upon in national cabinet in 2023, with Premier Chris Minns saying he would not sign “a blank cheque” to the Commonwealth as part of the newly announced policy.
Dr Chalmers yesterday reminded premiers that the national health reform agreement, which would see the Commonwealth pay states billions in hospital funding, was intrinsically tied to the NDIS reform package.
“There are billions and billions of dollars tied up in (those deals) and so we’ve been trying to progress both … at once for good reason because there are swings and roundabouts for both of us,” he told the ABC.
“As always, with Commonwealth-state financial relationships, there is a bit of back and forth about how we deliver.”
When asked whether he was suggesting the states would not receive the hospital funding if they didn’t support the Government’s NDIS policies, Dr Chalmers would not rule it out. “Well, that’s the ongoing discussions that we’ve been having,” he said.
“Whether it’s treasurers, health ministers, NDIS ministers, leaders – (they) have been having this discussion since the deal was struck.”
While Mr Butler announced the Commonwealth would forge ahead with its plans to cut the annual growth of the NDIS to as low as 4 per cent a year, he said the states would need to play a critical role in providing the services outside of the scheme.
Labor on Wednesday said it would pay $2 billion to set up the Thriving Kids program, designed to service autistic children no longer eligible for the NDIS after changes come into force in July 2027, but Mr Butler said he expected states to “match” that funding.
FULL STORY
Support NDIS change or risk billions in hospital funding, states told (By Sarah Ison, The Australian)
