Chalmers flags further NDIS 'savings' as talks with states loom; Viva Energy targets 90% Geelong output within weeks

Treasurer Jim Chalmers says further "savings" to the National Disability Insurance Scheme are on the table as the government seeks to slow its growth to about 5 per cent, and he is preparing to hold talks with the states on the path forward. Chalmers acknowledged state concerns about cost shifting but said governments were working in good faith on a sustainable future for the scheme.

He described the NDIS as central to Australia’s support system yet argued that escalating costs must be addressed, noting the program is not operating as Labor originally envisaged. He would not say whether the Commonwealth would provide additional funding to persuade states to join a proposal to move children with developmental delay or mild autism off the NDIS and into a new "Thriving Kids" program.

The treasurer also flagged heightened uncertainty ahead of the federal budget, saying inflation forecasts would be settled in the next week or two and would include "some discussion of the downside scenarios where this plays out even worse than we’re currently anticipating." He added the budget would not present more than one bottom line, stressing there is "an extraordinary amount of uncertainty" shaped by international developments.

"There’s an extraordinary amount of uncertainty in all of that, because it relies on decisions taken in Washington and Tehran and elsewhere," Chalmers said. "The Australian economy is in lots of ways hostage to those developments and those decisions." Separately, Viva Energy said it aims to restore more than 90 per cent of production at its Geelong refinery within "the next few weeks" after a blaze last week halted operations.

Chief executive Scott Wyatt said the company is investigating the cause of the fire, which broke out late on Wednesday and was extinguished after about 13 hours. Some residents criticised the company and emergency authorities for what they said was inadequate messaging about the severity of the incident.

Wyatt apologised for distress caused and said the company would prioritise safety as it ramps back up. He pledged that costs from lost production would not be passed on at the bowser and said Viva Energy does not expect disruptions to fuel availability or price increases for its customers as a result of the incident.

Senior government figures are considering contingency measures should fuel pressures persist, with options being weighed for managing food supply and other essential industries. Chalmers’ discussions with the states are set against this uncertain backdrop, with budget forecasts due to be finalised in the coming weeks and Viva Energy targeting a staged return to near-full output at Geelong.