NDIS funding comes from three places:

1. Redirected state funding: money that state and territory governments previously spent on their own disability services now flows into the NDIS.
2. The Medicare levy: the levy was increased from 1.5% to 2% in 2014, with the increase helping fund the NDIS.
3. General government revenue: the remainder comes from the federal budget.

In other words, the NDIS is funded the way Medicare is: by all of us, as a shared national scheme. It's not welfare and it's not charity, it's insurance that any Australian might one day need, which is exactly why it isn't means tested.