The Tasmanian Government has announced it has signed up to the full National Disability Insurance Scheme (NDIS), and will be funded from proceeds from the recently announced Medicare levy increase.

"The National Disability Insurance Scheme stands with Medicare as the most critical reform this country has seen in decades,” Premier Lara Giddings said.

"The NDIS provides a safety net that ensures vulnerable people in our community are given the care and equipment they need and deserve.

"This scheme will not only provide direct relief to those living with disability but also to their families and carers, who up until now have shouldered the emotional and financial burden of caring for their loved ones."

State Minister for Human Services, Cassy O’Connor, said that the investment from both State and Federal Governments would see significant improvement in the quality of life for Tasmanian’s living with a disability.

“Every decision we make in our support and reform of the disability services sector is aimed at empowering Tasmanians living with disability by giving them the flexibility to choose the services and support they need,” Ms O’Connor said.

“It will greatly enhance the level of support available for Tasmanians living with disability, and help them lead independent, productive lives as valued members of our community.”

Ms Giddings welcomed the Federal Government's decision to increase the Medicare levy by 0.5 per cent to help fund the scheme.

"The levy will help offset the substantial costs to the state of funding the full NDIS, however the State Government will still be funding close to half the total cost of the scheme.

The first stage of the NDIS will start in Tasmania in July this year, supporting around 1000 young Tasmanians with disability aged between 15-24.

From July 2016 other eligible Tasmanians with disability will start to get support through the NDIS, and the scheme will be fully implemented in Tasmania by July 2019.

Around 10,600 Tasmanians with disability are expected to benefit from the full NDIS.