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The report, Towards a Fair Go, says a levy might be watered down but less so than allocations from general revenue.

''But it's important because for too long Australians with disabilities haven't received adequate levels of support and this reform is long overdue.''

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The levy would raise $6.6 billion a year in addition to the $6.2 billion already provided by state and federal governments to help about 360,000 Australians under 65 who have permanent, severe or profound disability.

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''You would end up with a disability scheme that would get diluted over time even if it were fully funded at introduction,'' he said. ''Either eligibility rules would be tightened or generosity reduced.''

AUSTRALIANS would pay an average $15 a week to fund a national disability insurance scheme under a new proposal to be released today.

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Per Capita's executive director, David Hetherington said it was unlikely sufficient funds would be allocated from general revenue given the many demands on the budget.

''Given the heated debate over the flood levy, mining super profit tax and carbon tax, it will be a challenging proposition for government to embrace,'' he said.

in contrast to the commission's recommendation that a national disability insurance scheme be funded out of general revenue.

The Productivity Commission's report, being considered by the federal government, said $6.5 billion would be needed but its scheme excluded the small group injured in medical accidents, criminal assaults and falls who are covered in the alternative proposal.

It would provide them with access to care, therapy, equipment, home and vehicle alterations, and respite.

Under Per Capita's scheme, the levy would be set by an independent commission to cover the expected liabilities. The government would be free to change the level of support and care it wished to provide but would give three years' notice.

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levy would be paid by all taxpayers with incomes more than $18,488. A couple with two children in a single income household of $40,000 would pay $3 a week; on $75,000 it would pay $19; and $30 on $120,000.

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15 tax levy to fund disability insurance

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The 1.3 per cent disability levy is suggested by independent think tank Per Capita in the first analysis since the Productivity Commission released a major report this month.

Mr Hetherington said the introduction of a levy would require great commitment.

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