Peter Dutton says Coalition would support NDIS cuts to pay for Aukus submarines

Peter Dutton has suggested the Coalition would offer bipartisan support for cuts to the national disability insurance scheme to keep it “sustainable” and pay for the Aukus nuclear submarine acquisition.

The former defence minister and opposition leader offered bipartisanship on budget savings ahead of Anthony Albanese announcing the submarine plan on Tuesday morning AEDT, with the UK prime minister, Rishi Sunak, and the US president, Joe Biden.

The Aukus plan to buy up to five Virginia class submarines before working jointly on a next-generation submarine with the UK is expected to cost hundreds of billions over several decades.

Asked if bipartisan support for Aukus would extend to giving the government leeway to make budget savings to pay for it, Dutton told ABC’s 7.30: “The short answer is yes.”

“In my budget in reply speech last October I said that we would work with the government if they had tough decisions to take, for example, keeping the NDIS sustainable.

“It’s an incredibly important program but it needs to be sustainable. And if the cost trajectory of that is going to result it in falling over, I think the government itself has pointed out that’s not sustainable.”

“So, if there are different ways in which we can provide support to the government, we’re happy to do that.”

Dutton noted spending for nuclear submarines was “over a long period of time”, into the 2050s and beyond, whereas the budget focused on “the next four years”.

“There will always be points of difference about where spending priorities lay and we will work through that.”

On Saturday, Albanese threw down the gauntlet to the opposition to back budget savings to pay for an increase in defence spending, promising that Labor “will” explain to the Australian public why it was worthwhile.

“That’s why some of, frankly, the juvenile response of the opposition to some of the fiscal matters that are before us deserves contempt,” Albanese told reporters in India.

The comments were a reference to the Coalition vowing to repeal Labor’s proposed reduction in tax concessions on super balances of over $3m, which the opposition branded an attack on middle Australia.

“Australia faces real challenges,” Albanese said. “We have said very clearly and explicitly that there are major pressures on expenditure, not just in defence, but in other areas as well.”

With more than half a million participants, the NDIS cost $35.8bn in 2022-23, making it the second largest social program after the pension.

The NDIS is set to cost more than $50bn by 2026, the second fastest growing element of the budget after interest payments.

Labor is reviewing the scheme, but has so far focused on the need to crack down on fraud rather than broader changes such as means-testing.