NDIS commencement and Related Funding Laws

From 1 July 2013 the National Disability Insurance Scheme Act 2013 (No. 20 of 2013) (NDIS Act) has fully commenced. The Act establishes a framework for the National Disability Insurance Scheme (the NDIS) and the National Disability Insurance Scheme Launch Transition Agency (the Agency) enabling the scheme to be launched, and the Agency to operate from its launch, in five sites across Australia on 1 July 2013.

Purpose of NDIS and Legislation

The key purpose of the NDIS Act is to set out the process for a person becoming a participant in the NDIS allowing participants to develop a personal, goal-based plan with the Agency. The Acts also deals with  how reasonable and necessary supports will be assured to participants. Under the scheme participants are able to decide for themselves how to manage their care and support and choose how they want to manage their supports. The Act also provides that the Agency will be responsible for the provision of support to people with disability, their families and carers; for example, providing funding to individuals and organisations to help people with disability participate more fully in economic and social life.

The Act is to be independently reviewed after two years of operation and the first stage of the NDIS is expected to cost the Commonwealth one billion dollars over four years starting from 2012-13. Note: an important aspect of the NDIS Act's commencement is that it allows the NDIS rules to be made under the NDIS Act. The term NDIS rules is defined in the Act at section 9. The NDIS rules are legislative instruments which provide further detail on the operation of the NDIS; for example, specifying the methods for applying the access criteria under Chapter 3 of the Act.

Funding the NDIS and Related Legislation

The main piece of legislation providing for the funding of the NDIS is the DisabilityCare Australia Fund Act 2013 (No. 37 of 2013) which provides for the funding of "DisabilityCare Australia" the fund established by the NDIS Act. DisabilityCare Australia is to be funded by increasing the Medicare levy by half a percentage point to 1.5 percent, such revenue being placed into a special fund established by the DisabilityCare Australia Fund Act (DCAF). Some parts of this Act have already commenced as of May 2013 and on 1 July 2013, the remaing provisions are not set to commence until 1 July 2014.

Other Acts also amended and associated with the previous Act and the NDIS are the DisabilityCare Australia Fund (Consequential Amendments) Act 2013 (No. 86 of 2013) which is part of the package of Acts giving effect the establishment of a DCAF to hold the money coming from the increase to the Medicare levy. The Acts amended by this Act are as follows:

• COAG Reform Fund Act 2008 (No. 156 of 2008)

• Future Fund Act 2006 (No. 12 of 2006)

• Nation-building Funds Act 2008 (No. 154 of 2008)

Also there is related legislation which includes:

• Taxation (Trustee Beneficiary Non-disclosure Tax) (No. 2) Amendment (DisabilityCare Australia) Act 2013 (49 of 2013)

• Taxation (Trustee Beneficiary Non-discloser Tax) (No. 1) Amendment (DisabilityCare Australia) Act 2013 (48 of 2013)

• Superannuation (Excess Concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 (47 of 2013)

• Superannuation (Excess Non-concessional Contributions Tax) Amendment (DisabilityCare Australia) Act 2013 (46 of 2013)

• Superannuation (Excess Untaxed Roll-over Amounts Tax) Amendment (DisabilityCare Australia) Act 2013 (45 of 2013)

• National Disability Insurance Scheme Legislation Amendment Act 2013 (44 of 2013)

• Medicare Levy Amendment (DisabilityCare Australia) Act 2013 (43 of 2013)

• Income Tax (TFN Withholding Tax (ESS)) Amendment (DisabilityCare Australia) Act 2013 (42 of 2013)

• Income Tax Rates Amendment (DisabilityCare Australia) Act 2013 (41 of 2013)

• Income Tax (First Home Saver Accounts Misuse Tax) Amendment (DisabilityCare Australia) Act 2013 (40 of 2013)

• Fringe Benefits Tax Amendment (DisabilityCare Australia) Act 2013 (39 of 2013)

• Family Trust Distribution Tax (Primary Liability) Amendment (DisabilityCare Australia) Act 2013 (38 of 2013)

Sources: Legislative information researched from the Explanatory Memoranda and Bills and Acts as reproduced in TimeBase LawOne.

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