State and territory governments have agreed to work with the Commonwealth to build a centralised data hub that will seek to create "a more complete picture of the life experiences" of people with disabilities and improve policy, spending and services.
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Governments and the disability community will co-govern the National Disability Data Asset, which will include information on employment, health, education and support services.
The government has promised there will be strong ethical oversight and privacy protections for the data asset.
Social Services Minister Amanda Rishworth said the data asset will create "a more complete picture" of the experiences, needs and goals of Australians with disability.
"We will have a strong national evidence base that will inform smarter policy, better services and supports, and improved outcomes in areas like employment, health and education," she said.
"The lives of people with disability will be improved by this asset."
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Every state and territory will receive up to $1.36 million as part of the $68.3 million initiative to help deliver the data.
National Disability Insurance Scheme Minister Bill Shorten said people with disability have been "integral in the design of the asset", which will help more effective investment to better support people with disability.
"This is really important work and will revolutionise the way we support Australians with disability," he said.
The government said the data asset will be integral to fulfilling Australia's Disability Strategy 2021-31 commitments.
The first data analysis is to be released next year, with the asset expected to be fully operational in 2026.