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wikiThe scheme is entirely publicly funded: recipients do not purchase or contribute to an insurance policy. The scheme is not means-tested. The word 'insurance' refers to the scheme's use of proactive insurance principles[clarification needed] to manage long-term financial sustainability.
NDIS funding is independent of the Disability Support Pension and Medicare, Australia's universal health care insurance scheme. NDIS legislation draws a distinction between health care and disability supports, only the latter being within the remit of the NDIS. In addition to funding for individuals, the scheme funded some general 'information, linkages, and capacity building' (ILC) programs until mid-2020, when ILC programs moved to the Department of Social Services.
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The 2013 Australian federal budget committed $14.3 billion to the NDIS, to be paid for by increasing the Medicare levy by 0.5%.[29] As of May 2013, the Australian Government estimated the disability sector in Australia would need to double to meet the needs of the NDIS.[30] The first part of the scheme rolled out on 1 July 2013.[31] It was initially known as "DisabilityCare Australia" and commenced only in South Australia, Tasmania, the Hunter Region in New South Wales and the Barwon region of Victoria. The NDIS then commenced in the Australian Capital Territory (ACT) in July 2014. The Medicare levy increased from 1.5% to 2% on 1 July 2014, to fund the NDIS.[32]
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