The Productivity Commission will consider the introduction of a social insurance scheme to cover long-term care and support for the disabled.

Prime Minister Kevin Rudd unveiled the proposal last week among a wider reform agenda for national disability services.

“For far too long, people with disability in this country have had to battle for the right to live their life to its full potential,” he told the National Disability Awards ceremony in Canberra.

Recent figures reveal about 2.3 million Australians will have a high level of disability by 2030.

A Productivity Commission inquiry will examine whether a no-fault social insurance approach would fit with existing health, aged care, income support and injury insurance systems.

An initial feasibility study will determine if such a scheme is economically practical while an expert panel will assist the inquiry.

The commission will report to the Federal Government in July 2011.