Victoria has become the fourth Australian state to sign up for the federal government's disability care plan, agreeing to a full rollout of the scheme by 2020.
The deal means that all jurisdictions except Western Australia, Queensland and the Northern Territory have agreed to be part of the scheme.
New Zealanders in Australia claim the scheme discriminates against them because they are not classified as permanent visa holders.
Although living and working in Australia, New Zealanders have a special category visa which cuts their access to social security and despite them paying for the scheme they are not entitled to it.
The Australian federal government will spend $A2.6 billion to establish the scheme, while the state government will contribute $A2.5 billion, AAP reports.
Under the deal, Victoria will also receive $A244 million a year from 2019-20, to be funded by an increase to the Medicare levy.
The Barwon region will begin a trial of the scheme from July this year, with the rollout across the state to be completed before 2019-20. Victorian Premier Denis Napthine said an estimated 100,000 Victorians would benefit.