Jane Prentice (Ryan, Liberal Party, Assistant Minister for Social Services and Disability Services) Share this | Hansard source

I rise today to speak on the National Disability Insurance Scheme Savings Fund Special Account Bill. It is understandable if people listening in perhaps thought that this was about the omnibus bill from listening to the words of the previous speaker, the member for Jagajaga. However, this bill establishes the NDIS Savings Fund special account, which will help the government meet our financial obligations in relation to the NDIS and secure the funding future for NDIS.

I need not explain the importance that this government places on the success of the NDIS. However, unlike those opposite, we recognise the criticality of making sure the scheme is appropriately funded. Let me make it very, very clear: the Prime Minister and the coalition government are completely committed to the full funding of the NDIS. This bill is testament to the government's commitment to establishing a sound basis for the fully funded scheme. Indeed, the Australian government is committed to ensuring the success of the NDIS. People with a permanent significant disability, their carers, their families and thousands of disability service providers and their staff are dependent on a properly funded scheme.

As I have said before, the NDIS is a life changer for those eligible for the scheme. It will support a better life for around 460,000 Australians under the age of 65 with a permanent and significant disability through individualised and tailored packages of support of their choice. Since my appointment as the Assistant Minister for Social Services and Disability Services, I have met with more than 300 disability sector stakeholders all around Australia. Through these meetings I hear firsthand the opportunities and challenges facing people with a disability. As I move around Australia, speaking with stakeholder groups, I am regularly asked, 'What funding arrangements are in place for the NDIS and will those arrangements be good enough to support eligible people with disability?' More importantly, 'Is the NDIS sustainable, particularly as demands on the scheme increase?'

By 2019-20 the Commonwealth, state and territory governments will be jointly spending around $21.4 billion, with the Commonwealth contributing just over half of this amount. In 2019-20, when the NDIS reaches full scheme, funding from the federal government will come from three main sources: existing programs, the DisabilityCare Australia Fund and the repayment of Commonwealth funding to the states and territories for their existing specialist disability services. This totals around $7 billion.

Unfortunately, Labor failed to specifically set aside adequate funding, and any savings they said they were going use to support the NDIS went into consolidated revenue. Labor's actions have left us with a $4.1 billion funding gap each year. This will rise in future years. Once again, we see typically fiscally irresponsible Labor. That is why the passage of this bill is so important. It will help us identify savings and set those savings aside for the NDIS. The coalition is a responsible government. We are not want to fund this gap by increasing taxes. We do not want to fund this gap by borrowing more money. We do not want to fund this gap by charging a levy. Instead, we want to systematically and transparently identify savings and underspends to plug this gap and guarantee the future of the NDIS. I would also like to note that in November last year, the Senate Community Affairs Legislation Committee acknowledged the importance of this bill and subsequently recommended its passage. The passage of this bill will give me the ability to confidently respond to stakeholders and say 'Yes, the NDIS is sustainable, and yes, the NDIS is adequately funded.'

I appreciate the opportunity to meet many people with disability and their service providers, and to hear the stories they have to tell. I continue to be impressed when I hear stories about how the NDIS is making a real difference to people's lives. For example, I heard from a young man with a disability who had previously required assistance every morning to get ready for work, and then required someone to drive him to work. Later in the day, he needed the same support in reverse to get home. For this young man, the NDIS meant that he was able to have his car modified so that he could drive himself. Now, with increased confidence, he no longer wants assistance every morning and every afternoon. Not only does he drive himself to work but he now has freedom on the weekends to drive wherever he likes. This new-found freedom empowered him even further, to the point where he no longer needs any assistance. Mr Deputy Speaker, leading an independent life is taken for granted by many people. It is not until you experience the hardships faced by people with disabilities that you appreciate the small things, like driving yourself unassisted to and from work.

The return on a properly funded NDIS is invaluable, but that does not mean we do not need to take steps to ensure there are enough funds available to support it. It is true that the NDIS is having an impact on service providers. In some cases, it means a change to their business model. To me, this is a chance for innovation and a chance to do things better. I saw an example of this in Western Sydney, where a group of service providers banded together to establish a consortium, Disability MacArthur. They have thought outside the box and identified a more efficient and cost effective structure by cooperating together. They provide a range of services, all from the one location, sharing back-of-house overheads and expenses. Disability MacArthur has created a sort of menu of day plans and activities that NDIS participants can choose from according to their individual preferences. They can even include the transport to and from the activity. Not only is this an efficient way of maximizing the skills and qualifications of the staff but it also provides flexibility in balancing participants' needs and cost effectiveness of services. This is just one example of the innovation we are seeing across the sector.

Another important point to mention is the jobs that the NDIS is creating. We estimate that the NDIS will create more than 180,000 new jobs across Australia. More jobs means a better economy. But for this to happen, the NDIS must be properly funded.

Labor failed to properly fund the scheme when they had the opportunity. If they are serious about supporting the NDIS, they will support this bill now. Naturally, the growth of the NDIS and the growth of demands on its resources over time will be the greatest challenge to the scheme. As an advocate for this sector it concerns me that those opposite are unable to grasp even the most basic of economic principles: when the money runs out you cannot just keep spending.

The savings fund is a fiscally responsible, forward-thinking strategy. However, this is not a revolutionary concept. The Howard government established the Future Fund with the initial objective of financing the superannuation obligations of Commonwealth public servants. The NDIS must provide a level of certainty to maintain public confidence in the capacity of the scheme to fulfil the requirements of those who are reliant on it. This government would be abandoning our duty if we failed to secure the possible sources of revenue for the scheme. The coalition acknowledges the significant financial commitment required for the scheme to reach its maximum potential, and we are taking necessary steps to achieve this.

I have mentioned it before and I will mention it again: I am appalled at the economic havoc that drives the opposition—a drive to make a political point regardless of the facts—demonstrated by their failure to properly fund the NDIS when they left office in 2013. They produced a lovely, glossy 2013-14 budget document and they identified savings. Unfortunately, those savings were not specified. And, indeed, at the Senate estimates that year, when Treasury was asked whether these measures could be listed in detail, Treasury's response was no. So even Treasury could not identify where Labor had created these savings, and as I would suggest probably another one out of thin air—their magic pudding approach to economics. In fact, if you look back through their budget you will notice that supposedly they funded the NDIS from their surplus of $1.5 billion. Great, except that in the year they identified a $1.5 billion profit, or surplus, they actually delivered a deficit of $18.8 billion—another Swanny special.

The bottom line is they did not provide for NDIS into the future. This is the problem we have now. This government is serious about funding for NDIS, for securing the future and once again we see Shorten using the scare tactics on the most vulnerable people in the community. Prime Minister Malcolm Turnbull and the coalition government are committed to funding the full scheme.

Like my responsible colleagues, I am delighted to support this bill. By establishing a stable financial platform for the NDIS, we are demonstrating commitment to a scheme that is one of the most important social reforms seen for many years. I am particularly pleased that the fund will draw from underspends from the NDIS and other portfolio savings. As I demonstrated before with that young man with a car that was changed so that he could drive it, whilst that was an up-front expense, it has now over the longer term meant a lower cost to NDIS.

Over the next 10 years the NDIS Savings Fund Special Account will be able to receive credits, which will be available to fund the continuing operations of the NDIS. These savings accounts provide a secure mechanism to isolate and preserve these funds so they can be specifically directed to the NDIS. This means that money designated originally to be spent on this sector will remain within it.

I look forward to the successful passage of this bill and encourage those opposite to make the responsible choice to support it and to show their commitment to the full funding of NDIS. I commend this bill to the House.

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