People with disabilities will be banned from paying for sex services through national insurance scheme funding under a Morrison government plan.
State and territory ministers from across the political divide have rejected a proposal to change to National Disability Insurance Scheme funding rules.
Government Services Minister Stuart Robert plans to define reasonable and necessary NDIS services under federal law.
"The Commonwealth will now make a principled decision because we don't believe taxpayers' money should be used for prostitution services," he told 2GB radio on Wednesday.
The move responds to a Federal Court ruling that found a woman with multiple sclerosis and other conditions was legally entitled to receive funding for sex therapy.
The ACT opposes banning sex services from the NDIS.
Some states have asked for more consultation while others indicated they were unlikely to support the federal government.
"Because I can't get agreement, I'm forced to legislate. If states and territories wish to fund prostitutes they can pay for it themselves," Mr Robert said.
The minister wants the changes to ban other services like spa treatments or building jetties at the end of people's property for kayaking.
"We have to draw rules about what is reasonable and necessary because the community expects us to do that," he said.
He urged Labor and crossbench senators to support the amendments in the Senate.
"I hope they'll understand that no government has ever funded prostitution before ever that we can find in the history of the Commonwealth," Mr Robert said.
"We shouldn't be starting now."
