On 22 April 2026, Health Minister Mark Butler announced major reforms to the National Disability Insurance Scheme (NDIS).
The changes have been described as a 'reset' with the intention to refocus the scheme, reduce spending and ensure long-term sustainability.
While the reforms are wide-ranging, they will not take effect immediately and will be introduced gradually over time.
The Government will introduce the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill next month, then there will be a lot of debate and community consultation before we see any changes take effect.
Here's an explainer of the announcement and the key takeaways.
Why the 'reset'?
The NDIS was established to support people in Australia living with 'permanent and significant disability' 13 years ago.
Since then, its rapid growth has seen the scheme expand much faster than originally forecast. Spending increasing by 10-14 per cent per year.
Today, there are more than 750,000 participants and the scheme is estimated to cost around $70 billion by 2030.
"These reforms are about saving the National Disability Insurance Scheme itself," the Minister said, with the aim of reducing costs to around $55 billion.
Changes we know so far
NDIS participants
The government expects the number of NDIS participants to gradually reduce from around 750,000 to about 600,000 by 2030.
Access is likely to become more targeted on those with higher support needs.
For some NDIS participants with lower support needs, this may mean they are directed to services outside the NDIS instead of receiving a plan.
Eligibility rules will change
The way people qualify for the NDIS will shift over time.
Rather than a diagnosis (for example, Autism) evidence-based assessments will be introduced to determine how a person's disability impacts their everyday life, such as communication, mobility, and independence.
Eligibility changes are expected to roll out gradually over the next few years.
Growth and spending caps
The government plans to slow the growth of NDIS spending to protect its long-term future. Annual growth is expected to be capped at around 2 per cent.
Some areas of support and spending are expected to see reductions.
For example, funding for social and community participation is expected to be reduced to 2023 levels, with the average participant budget for this category decreasing from $31,000 to $26,000.
Stronger oversight of providers
The changes propose an increased provider oversight, including broader registration requirements and a new digital payment system to track how funds are used, based on evidence.
These changes are designed to improve quality, protect NDIS participants, promote consistency, and transparency, and reduce fraud or misuse.
New alternative support programs
While the NDIS is reducing in size, some additional support programs will be opening with the government announcing a $200m fund to rebuild capability among community organisations.
This may include state-based services or early intervention programs, particularly for children with milder developmental needs.
These supports are still being developed, so details will become clearer over time.
Plan changes
Over time, plans will become more standardised, more tightly managed, and more focused on higher support needs.
Changes may include:
- Standard assessments: Everyone may go through a similar assessment to determine how their disability affects daily life.
- Clearer budgets: Funding may be set rather than vary widely between people. Some funding categories - like social and community participation - may be reduced.
- Plan reassessments: reviews will be based on standard assessments and the criteria for unscheduled plan reassessments tightened.
- Unspent funds: The roll-over of unspent funds each year will stop.
- More consistency: people with similar needs are more likely to receive similar levels of support.
It's expected the new framework planning tool will not roll out until 1 April 2027.
What's next?
After the 2026-27 Budget is handed down in May, the Government will introduce a new law called the Securing the NDIS for Future Generations Bill.
The Government plans to work closely with the disability community, as well as state and territory leaders, to design these changes.
Stay tuned
These reforms are significant and focused on making the NDIS more sustainable, while continuing to support people with disability.
It's natural to have questions about how these changes will work in practice, including how transitions will happen and whether new supports will meet participants' needs.
For more information and updates, visit the Department of Health, Disability and Ageing's website.
This article is general in nature and based on publicly available information. Mable encourages you to make your own independent enquiries about how the reforms affect you. Third party links are for reference only and Mable is not responsible for any use of these links or the related content.
