Qld deal moves full NDIS step closer

Julia Gillard is closer to getting a nation-wide deal on disability care, as WA are yet to sign on. Source: AAP

QUEENSLAND is ready to sign up to federal Labor's national disability care scheme, leaving Western Australia the only state not yet on board.

Prime Minister Julia Gillard and Queensland Liberal National Premier Campbell Newman will announce details of the long-term funding deal in Brisbane on Wednesday.

But sources have told AAP the state won't follow its peers in having a launch site.

The deal will put pressure on WA to sign up to a funding agreement this year and give Ms Gillard more political ammunition when parliament returns next week to sort out legislation to raise the Medicare universal health levy to pay for the scheme.

Mr Newman says changes made to DisabilityCare Australia, as the former NDIS scheme will be known, mean he can sign up to it.

"Queensland is primed and ready for full rollout of the NDIS," he told the Queensland Media Club on Tuesday.

"It is in itself a pragmatic revolution that services are delivered to people who need them the most."

Ms Gillard's spokesman told AAP the prime minister "looks forward to finalising a historic agreement to deliver better disability services for Queensland".

Queensland has committed $860 million to the scheme over the four years between 2014/15 and 2018/19 and would receive another $200 million from a hike in the Medicare levy to two per cent, from 1.5 per cent.

The latest Newspoll showed 78 per cent voter support for DisabilityCare but there was no boost for the federal government, which trails the coalition 44-56 on two-party terms.

Ms Gillard's standing as preferred prime minister received a small lift, up two points to 37 per cent, but Opposition Leader Tony Abbott maintains a five-point lead.

Treasurer Wayne Swan, who's putting the final touches on next Tuesday's budget, confirmed the government faced a $17 billion shortfall in revenues since the 2012 budget.

He also axed plans to increase the rate of Family Tax Benefit Part A by as much as $300 a year for families with one child and $600 for those with two or more children.

Mr Swan described the decision as "difficult, but responsible".

The increase was meant to be covered by mining tax revenue, which is now estimated at just $800 million in the current year instead of a forecast $2 billion.

The treasurer applauded the Reserve Bank's decision to cut the cash rate to 2.75 per cent, their lowest level on record.

He reassured voters that the cut did not mean the economy was on the wane.

"We have solid growth, we have low unemployment, we have a strong investment pipeline, we have strong public finances, we have contained inflation, and we have low interest rates," he said.

Shadow treasurer Joe Hockey said rates had been cut because the Reserve Bank felt the economy was being mismanaged.

He told a business forum in Sydney the "cupboard is bare" and there would be no room for big spending promises during the election campaign.

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