About $3 billion will be put into the national disability insurance scheme as a result of welfare changes, Treasurer Scott Morrison has announced.
The $5.5 billion in savings from the welfare overhaul were going to be split between extra childcare spending and balancing the budget.
But Mr Morrison said they would now be debited to the NDIS special account to deliver “greater certainty” around the delivery of the scheme.
Mr Morrison told reporters there would be no impact on the budget’s cash balances as a result of the decision.
“It goes to budget repair. It is going to offset big spending of the government,” he said.
Social Services Minister Christian Porter said the revenue from the Medicare levy had unexpectedly come in at a higher level and two states – Queensland and Western Australia – had not drawn from the fund as quickly as anticipated.
Mr Morrison said if the Senate did not pass the welfare reforms it would now mean less money for the national disability insurance scheme.
if the Senate did not pass the welfare reforms it would now mean less money for the national disability insurance scheme.
Mr Porter admitted it was possible not all of the six measures in the omnibus bill would pass, but he hoped Monday’s announcement would spark a response from senators.
“We are going to take the case right up until the bill is passed,” he said.
“The time that you truly know whether you will get support on each and every measure is the time that the vote is taken. If we make savings in those areas, they will go on to pay for the NDIS.”