There are three places the NDIS money is coming from:

First, existing money spent by state and territory governments on disability services is now going into the National Disability Insurance Scheme.

Second, funds for the NDIS come from the increase in the Medicare levy that occurred in July 2014 from 1.5 per cent to 2 per cent.

Finally, any NDIS funding not offset by the above sources must come from general budget revenue or borrowings.