NDIS may be funded by tax rise if Senate blocks omnibus saving bill, Mathias Cormann warns
Updated
The Federal Government has floated the prospect of raising taxes to help pay for the National Disability Insurance Scheme (NDIS), should the Senate continue to block its omnibus saving bill.
Key points:
- Omnibus bill rolls nearly $4bn in saving measures into one bill
- Scott Morrison pledges to divert $3bn from the bill to NDIS
- Labor rejects claims they left NDIS unfunded while in office
The warning from Finance Minister Mathias Cormann comes amid a political fight over the funding of the $22 billion scheme, with the Coalition accusing Labor of leaving a multi-billion dollar budget black hole.
"If the Labor Party continues to stand in the way of fixing the budget mess they left behind, then there comes a day when the only way you can repair the budget is through tax increases," Mr Cormann said.
The omnibus bill rolls nearly $4 billion in saving measures into the one bill, including changes to child care, family payments and paid parental leave.
Treasurer Scott Morrison has pledged to divert $3 billion of savings from the bill to the NDIS, but the Nick Xenophon Team remains opposed to the bill amid concerns from disability groups.
Prime Minister Malcolm Turnbull said the prospect of raising taxes to pay for the NDIS was "a penetrating glimpse of the obvious".
"We have a solemn obligation to the nation, to our children and our grandchildren, to live within our means," he said.
"The NDIS is currently short of money — Labor left it unfunded.
"It was another Labor promise, which we all support, but we've got to find the money to pay for it."
Mr Turnbull said Opposition Leader Bill Shorten suffered a "triple train wreck" of an interview on the ABC's AM program this morning and could not outline his plan for the NDIS.
"He was unable to say how the NDIS would be paid for … and he acknowledged he had no way of paying for that," he said.
Labor rejects funding shortfall claim
Labor politicians have repeatedly rejected claims they left the NDIS underfunded while in office.
Labor established the NDIS and is determined to not only defend its legacy but counter Coalition claims that it left the scheme only partially funded.
Once the NDIS is fully operational it will be one of the biggest government-funded programs after Medicare.
Mr Shorten said the former Labor government did have a plan to fund the NDIS despite claims it was not specifically outlined in the 2013 budget.
"Back in 2013, the NDIS was fully funded and now the Government says it's not fully funded," he said.
"I was there in 2013 when [then minister for families] Jenny Macklin outlined that we'd increase the Medicare levy and we would make other savings."
Ms Macklin, now shadow minister for families, said the suggestion that Labor left the NDIS with a funding shortfall was "totally false".
"It's yet another effort by this Government, an appalling effort by this Government, to play politics with the lives of people who are the most disadvantaged people in this country," she said.
Turnbull not against linking omnibus bill and NDIS
Mr Turnbull said he had no problem linking the savings from the omnibus bill with the NDIS — a move Senator Nick Xenophon described as a "sledgehammer" negotiation tactic.
"What the Treasurer is doing is pointing out the incredibly important factor that this big program, the National Disability Insurance Scheme, this big program is currently short of money," Mr Turnbull said.
Mr Shorten added: "He said it was mischief, it was opportunism and it was wrong — I don't think I could improve on Kurt's [Fearnley] statement."
Disability People Organisation Australia chief executive Therese Sands said she did not support funding the NDIS through cuts to other social services.
"We are shocked and troubled about this announcement from Treasurer Scott Morrison that once again links cuts to social security with funding for the NDIS," she said.
Topics: government-and-politics, federal-government, tax, australia
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