The proposed changes to the National Disability Insurance Scheme (NDIS) are set to significantly reshape the program, which is currently costing over $50 billion annually. Health Minister Mark Butler aims to streamline expenditures by reducing the average annual plan cost from $31,000 to approximately $26,000, which is estimated to eliminate around 160,000 recipients from the program.
With the NDIS originally intended to support about 410,000 Australians with significant and permanent disabilities, the current participant count has skyrocketed to over 750,000. The overhaul aims to bring this number down to 600,000 by introducing new assessments and altering eligibility requirements.
The new changes will include the following key modifications:
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Introduction of New Eligibility Assessments: Instead of relying solely on a diagnosis, eligibility will be evaluated through functional assessments, with a new tool set to be implemented by January 2028.
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Plan Reassessments and Budget Cuts: The frequency of reassessments will decrease, and budgets for community participation will be cut.
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Fund Management Adjustments: Participants will no longer be able to roll over unspent funds, potentially impacting their available resources.
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Provider Registration Changes: There will be an expansion of mandatory registration categories for providers, targeting higher-risk activities, which may see some unregistered providers required to register.
- Fraud Mitigation: The government will take steps to mitigate fraud and non-compliance that have cost the scheme billions.
The newly proposed eligibility criteria mean that many individuals with lower support needs, including children with “mild to moderate” autism, may no longer qualify for the NDIS. Instead, they might be redirected to the developing “Thriving Kids” program, which is still in its infancy and has already seen resistance from states like Queensland.
Additionally, the reforms will likely affect support workers, as reduced funding could limit the services participants can afford.
These changes will commence at the earliest in July, following the introduction of the National Disability Insurance Scheme Amendment Bill after the 2026-27 Budget is presented in May. The government has indicated that further reforms may also be introduced as part of ongoing efforts to secure the sustainability of the NDIS for future generations.