25 May 2018
Australians with a disability, their families and their carers will be better off under a landmark agreement reached today between the Commonwealth and New South Wales Governments. 
The arrangement ensures the full rollout of the National Disability Insurance Scheme (NDIS) in NSW -  the first state to officially sign up to the full scheme. 
It will deliver certainty on the long-term arrangements for the NDIS, and represents an important step in ensuring the financial sustainability of the NDIS in the future. 
The agreement announced today reflects the Australian and New South Wales Governments’ shared responsibility for the NDIS and locks in arrangements for both governments to make ongoing, up-front funding contributions to the scheme. 
This is a significant milestone in the delivery of one of the most important social reforms in our nation’s history. It places people at the centre of the system, and gives them choice and control over the services they receive.  
This is all part of the Government’s plan for a stronger economy - delivering essential services that Australians rely on. 
Today’s agreement is a fair deal, and aligns with the 2017 Productivity Commission Review of NDIS Costs. As the Productivity Commission recommended: 
  • The NSW Government has agreed that its annual funding contribution to the NDIS, which exceeds $3 billion in 2018-19, will be escalated by 4 per cent per year to keep pace with population and price increases;
  • The Australian Government will pay the balance of NDIS costs in NSW, providing certainty that the NDIS will remain fully funded into the future;
  • The two governments have committed to use shared funding to establish a NDIS reserve from 1 July 2019, to provide greater flexibility to manage the sustainability of the NDIS. 
The agreement will enable NSW to access $3.1 billion of DisabilityCare Australia Fund payments between 2018-19 and 2023-24. 
Securing the agreement means more certainty for disability service providers in NSW. The NDIS is strengthening our economy and guaranteeing essential services by creating tens of thousands of new jobs and boosting opportunities for businesses across the country. 
Over 84,000 people in NSW are already benefiting from the NDIS, including more than 16,000 people who had not previously accessed government-funded specialist disability supports. The NDIS is expected to eventually support around 140,000 people with disability in NSW. 
The Australian Government is committed to finalising agreements for NDIS full scheme arrangements with each state and territory, improving the lives of around 460,000 people with disability across Australia. 
The NDIS full scheme agreement for NSW will take effect from 1 July 2018.