The ACT is the only jurisdiction to explicitly support keeping services provided by sex workers as part of the National Disability Insurance Scheme, although other state ministers have indicated to the federal government they won't support a push to remove the services.
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Federal minister responsible for the scheme Stuart Robert has been on a mission to remove services from sex workers from the scheme since a Federal Court decision last year ruled specialised sex worker services should be included.
But since the states and territories have indicated they wouldn't agree to the changes, something required under the scheme's structure, Mr Robert has said he will move to define "reasonable and necessary" in federal legislation to exclude the services.
In response to the block by the ACT, Mr Robert has said "if the states and territories wish to fund prostitutes, they can pay for it themselves".
The minister wants the changes to also ban other services like spa treatments or building jetties at the end of people's property for kayaking.
"We have to draw rules about what is reasonable and necessary because the community expects us to do that," he said.
He urged Labor and crossbench senators to support the amendments in the Senate.
"I hope they'll understand that no government has ever funded prostitution before ever that we can find in the history of the Commonwealth," Mr Robert said.
"We shouldn't be starting now."
The ACT's position on the matter is longstanding, and support for keeping sex services in the NDIS was passed by the Assembly back in 2019. At the time Health Minister Rachel Stephen-Smith said "it is clear that the Commonwealth is taking a moral position, not one based on concerns about fiscal sustainability".
In 2019, the Administrative Appeals Tribunal found in favour of a female NDIS participant in her 40s who sought funding for specialised sex services under her plan. The National Disability Insurance Agency vowed to fight the decision, but the Federal Court backed the Tribunal in 2020. The Court found the NDIS Act "does not expressly exclude such activities from being funded supports".
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ACT Minister for Disability Emma Davidson said the changes proposed by Mr Robert are not in line with the fundamental principles of the NDIS "to enable people with disability to live an ordinary life, with choice and control over their reasonable and necessary supports".
"The ACT government supports the human rights of people with disabilities to be the decision makers about their bodies and their lives.
"We support decision-making about services and supports being made by the person with disabilities in consultation with their healthcare provider and carers."
Greens spokesman on disability issues Jordon Steele-John said the move was a smokescreen for a wider power grab by the government over the NDIS.
"If a disabled person who is a participant of the NDIS can show that a support or a service they wish to include in their plan is reasonable or necessary, then the scheme is working as it should," Senator Steele-John said.
"It is the very antithesis of the scheme for the Minister have the power to veto - based on his own moral beliefs - the kind of services and supports a disabled person might need in their plan."
- With AAP