DisabilityCare Australia Fund

The DisabilityCare Australia Fund (DCAF) was established on 1 July 2014 by the DisabilityCare Australia Fund Act 2013 External Site (DCAF Act). Its purpose is to enhance the Commonwealth's ability to reimburse State and Territory, and Commonwealth Governments for expenditure incurred in relation to the National Disability Insurance Scheme.

For information on the National Disability Insurance Scheme, refer to either the Department of Social Services External Site or the National Disability Insurance Agency External Site.

Legislation

The DCAF Act gives effect to the following:

  • Establishment of Government bodies: National Disability Insurance Agency (NDIA); 
    • NDIA is an independent statutory agency, with the purpose of implementing the National Disability Insurance Scheme.
  • Investment Mandate: the responsible Ministers are required to issue an Investment Mandate (detailed below).
  • Crediting amounts to the DCAF: the Treasurer will determine amounts to credit the DCAF. From 1 July 2014, credits to the DCAF will consist of the Medical levy increase of half a percentage point, from 1.5 to 2 per cent. For information on the credits, refer to the Investment Performance and Financials webpage.
  • Debiting amounts from the DCAF: the Finance Minister can debit from the DCAF for the purposes of reimbursing State and Territory, and Commonwealth Governments for expenditure incurred in relation to the National Disability Insurance Scheme.

Investment Mandate

The responsible Ministers provided the Future Fund Board of Guardians (Future Fund Board) with strategic investment guidance through a written direction in respect to the DCAF. This is a legislative instrument that is not subject to disallowance.

The DisabilityCare Australia Fund Investment Mandate Directions 2014 came into effect from 1 July 2014. It requires the Future Fund Board to adopt a benchmark return "equal to the Australian three-month bank bill swap rate +0.3 per cent per annum calculated on a rolling 12-month basis (net of fees)". It also directs the Future Fund Board to invest in such a way as to minimise the probability of capital losses over a 12-month horizon.

Contact information for this page: Funds and Superannuation Branch

Last updated: 12 October 2017