The recent NDIS announcements are likely the most significant proposed changes to the scheme. As a person-centred provider, we are concerned about the impact on our participants, families, and all people living with disability. We will work to mitigate negative effects and fiercely advocate for the rights and well-being of those affected.
The Minister outlined a broad NDIS “reset” by 2030, starting with tighter eligibility criteria based on functional impairment. This will be followed by a reduction in projected participant numbers to around 600,000, rather than growth beyond 900,000. Next, spending will be reduced by $16 billion, accompanied by lower annual growth to around 2% for 4 years before returning to 5%. Subsequently, tighter controls on social and community participation budgets will be implemented, followed by expanded provider regulation, greater oversight of digital payments, and greater use of commissioning for intermediaries.
The Government also confirmed that the New Framework Planning has been delayed to 1 April 2027 and announced a new $200 million Inclusive Communities Fund intended to strengthen community-based alternatives outside the Scheme.
The NDIS should be treated as a core national investment in rights, inclusion and social participation, not merely as a cost centre to be restrained. Cost discipline matters, but action on fraud, exploitation, and poor-quality practice are necessary; the answer cannot be to reduce access to the supports that sustain lives.
These reforms could risk limiting access to the supports participants rely on every day. By Compressing plans, tightening eligibility and shifting costs onto families. There is a real risk of a knock-on effect that could have a deeper impact on other health services that are either overstretched or non-existent in communities, leaving vulnerable people in the lurch.
The Minister’s announcement indicates the reforms are intended to result in around 160,000 fewer participants in the Scheme over the coming years. Such a reduction could create a risk for people with disability suddenly losing access to the supports they depend on for their day-to-day lives. They are also at risk of deteriorating development if a replacement system isn’t made available for these people.
We believe the Government should also turn its attention to reducing inefficiency within the NDIA itself. Recent audits have found that the NDIA has failed to meet several key performance markers that impede its ability to operate effectively. We don’t believe it is prudent to seek saving measures from external parties when internal efficiencies are in greater need of attention.
When it comes to broader budget questions, if the government is serious about protecting vulnerable people in our community and remaining fiscally responsible, other methods should be considered instead of cutting disability supports. Much of the resource extraction industry has experienced unprecedented profits, with very little of that wealth captured by this country to benefit its people. New taxes on gas and thermal coal exports that are currently under consideration would be a far better focus for the federal government to improve both this and future budgets, rather than targeting Australians with disability.
For participants, the greatest risks are uncertainty, exclusion and service loss. People with complex but not always easily measurable needs may be particularly exposed if new access pathways rely too heavily on narrow functional tests or administrative assumptions.
Participants may also face reduced flexibility if social and community participation supports are wound back. A reduction means less help attending appointments and community activities. The Government has stated that these budgets will be reset, and public reporting indicates that average spending in this category is expected to fall from about $31,000 to about $26,000, with implementation beginning in October 2026 if legislation passes. For many people, these are not optional extras; losing these supports could increase isolation, make it harder to maintain routines, reduce skill-building, threaten wellbeing, and challenge having safe participation in everyday life.
For service providers, the announcements signal a period of major instability and adjustment. Organisations will likely face more compliance obligations, more scrutiny, and potentially major changes to how some services are funded, especially in areas such as support coordination and plan management.
For quality providers, this isn’t only a policy issue but also a practical one: when administrative settings become more restrictive, unclear, or fragmented, organisations spend more time grappling with the system to achieve the best possible outcome for participants. That burden is rarely reflected in pricing, yet it has real consequences for workforce sustainability and service continuation.
Any reform agenda must be staged, transparent and genuinely co-designed with people with disability, families, advocacy bodies and frontline providers. In order to be consistent with the principle of “nothing about us, without us” referenced in the Minister’s address. No participant should lose support before replacement systems are in place and proven to work.
This position reflects the broader sentiment emerging across the disability sector: anti-fraud measures are supported, but fear and uncertainty are growing; detail is urgently needed; and any transition away from the current Scheme must be matched by fully funded, accessible and available alternatives.
There is a growing concern across the sector that reforms framed primarily around reducing growth and cost-cutting treat people as a budgetary burden rather than focusing first on reasonable outcomes, human rights, and the continuity of support.
The NDIS should be strengthened, not narrowed. Reform should improve quality, fairness and long-term sustainability, and it must do so in a way that protects rights, preserves participant choice and control, and recognises the essential role that skilled, values-driven service providers play in helping people live safe, connected and ordinary lives.
The test of these reforms will not be whether the numbers come down or costs are saved. The real test will be whether people with disability remain supported, included in the community and safe, whether the NDIA are required to become more efficient and accountable, and whether the government is willing to treat disability support as a national priority.
We acknowledge the connections of First Nations People of Australia to the land, sea and community on which we live and work. As custodians of this sacred land we respect and acknowledge Elders, past, present and emerging.
