With NDIS changes set to pass, here’s who bears the cost of making it ‘sustainable’
The government wants to cut $37.8 billion from the NDIS over 4 years. Much of this will come from tightening access to the scheme and reducing participants’ plans.
Legislation to tighten eligibility criteria for the National Disability Insurance Scheme (NDIS) may be passed as early as next week. The proposed bill, introduced in May and amended in July, aims to reduce NDIS spending by A$37.8 billion over four years by tightening access and reducing some participant funding. Government projections suggest that around 240,000 current participants could leave the NDIS by 2031, while an additional 110,000 individuals who might otherwise join could be diverted to other programs.
The eligibility changes will affect people with disabilities in several ways. Applicants will need to demonstrate they have tried all appropriate treatment options before their impairment is accepted as permanent and they are eligible to join the scheme. The Greens negotiated amendments that narrow the requirement, considering publicly funded and regularly used treatments. Restrictive practices will not count as appropriate treatment.
Funding for social participation will also be reduced by 50% for some participants, and capacity-building daily activities by 10%. This reduction in support could result in increased isolation, loss of independence, and reliance on families for unpaid care.
People with psychosocial disabilities, intellectual disabilities, Down syndrome, and vision impairment may be particularly affected due to their reliance on social and community participation supports, which are targeted for reductions. Children and young people, especially those aged 18 or under with autism or developmental delay, are also likely to be impacted by the tighter eligibility rules. Regional and remote communities may face fewer alternative services if NDIS support is reduced.
First Nations people may face additional barriers where services are not locally available or culturally appropriate. Families and unpaid carers may ultimately be responsible for filling the gaps where replacement services are not yet in place.
The bill must pass parliament, likely within the next week, before being implemented in stages. From October 2026, some participants will see reductions to social and community participation funding when their plans are renewed or reassessed. Thriving Kids, a new program, will begin its staged roll-out from February 2027, and tighter rules for funding decisions will take effect from April 2027, affecting both new and existing participants.
From January 2028, the most significant changes will come into effect, including stricter tests for permanent disabilities and a standard measure for assessing the impact of a disability on everyday life.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
