Treasurer
Queensland Government Minister for Trade and Investment 1 William St Brisbane Our Ref: 03224-2017 GPO Box 611 Brisbane Queensland 4001 Australia Telephone 07 3719 7200 Email treasurer@ministerial.qld.gov.au +9 SEP 2017 Website www.treasury.qld.gov.au ABN 90 856 020 239 Senate Standing Committees on Economics PO Box 6100 Parliament House CANBERRA ACT 2600 Dear Senators Medicare Levy Amendment (National Disability Insurance Scheme Funding) Bill 2017 | refer to the above-mentioned Bill which has been referred by the Senate to the Economics Legislation Committee (the Committee) for inquiry and report. | note the Bill proposes a 0.5 per cent increase to the Medicare Levy effective from 1 July 2019 to enable the Australian Government to meet its National Disability Insurance Scheme (NDIS) funding commitments. In considering the Bill, the Queensland Government suggests that the Committee has regard for the Australian Government’s responsibility for NDIS cost increases and the importance of certainty of funding for the NDIS. An increase to the Medicare levy is, in effect, an increase in personal income tax. At a time where wage growth nationally is restrained the increased levy can be expected to reduce the welfare of individuals and working families. Under existing funding arrangements the Australian Government has responsibility for NDIS costs overruns. The attached submission from the Queensland Government to the Productivity Commission’s (PC) NDIS position paper expresses the view it is reasonable for the Australian Government to meet these costs and risks because it has greater fiscal Capacity and power to raise revenue efficiently compared to states and territories (which are exposed to the risk of cost increases in mainstream services associated with NDIS implementation). Departure from current cost and risk sharing arrangements would also represent a further deviation from the funding approach originally envisaged for the NDIS by the PC in 20114, which proposed that the Australian Government be the sole funder of the NDIS.
The Queensland Government
The Queensland Government notes the intent of the Bill, as enunciated in the Federal Treasurer’s Second Reading Speech, which is to ensure the NDIS is fully funded for the long term. This reflects a general principle of the scheme set out in the National Disability Insurance Scheme Act 2013 that “People with disability and their families and carers should have certainty that people with disability will receive the care and support they need over their lifetime”. In order to provide this certainty - which is essential, the Australian Government must fund its share of the NDIS.
If you require further aes _ officers can contact Mr Po
Chief of Staff of my office on
| trust this information is of assistance to you.
Yours sincerely
HON. CURTIS PITT MP
Treasurer
Minister for Trade and Investment
Encl.