NDIS reforms announced — what we know so far

On 22 April 2026, Health Minister Mark Butler announced the most significant reforms to the National Disability Insurance Scheme since it began. The Government has framed the package as a 'reset' — refocusing the scheme on people with the highest support needs, slowing cost growth, and building a more sustainable model for the next decade.

Nothing changes overnight. The reforms will be introduced gradually, starting with the Securing the NDIS for Future Generations Bill expected next month, followed by community and state-government consultation before any specific change reaches participants.

Why a reset now?

The NDIS was designed thirteen years ago for Australians living with permanent and significant disability. Since then, the scheme has grown much faster than was originally forecast — annual spending growth of 10–14% has pushed the projected 2030 cost to around $70 billion. The Government's stated aim is to bring that down to roughly $55 billion while protecting access for the people who rely on it most.

“These reforms are about saving the National Disability Insurance Scheme itself.”

What we know so far

The detail is still being developed, but the broad shape of the reforms is becoming clearer. Here are the changes most likely to affect participants and families in the next few years.

Participant numbers

The Government expects total NDIS participants to fall from around 750,000 today to roughly 600,000 by 2030. People with the highest support needs will keep their plans, while those with lower support needs may be directed to alternative programs run outside the NDIS.

How eligibility will be assessed

Access decisions will move away from diagnosis-based criteria (for example, an autism diagnosis) toward evidence-based functional assessments. The new approach measures how a person's disability affects everyday life — communication, mobility, self-care, and independence — and matches funding to that real-world impact.

These eligibility changes will be phased in over the next few years; nothing changes for current plan-holders until reviews start using the new framework.

Growth and spending caps

Annual NDIS growth is expected to be capped at around 2%, well below the recent trajectory. Specific categories will see budget reductions:

• Social and community participation funding will be wound back to 2023 levels — average participant budgets in this category drop from about $31,000 to $26,000.
• Unspent funds will no longer roll over from one plan year to the next.
• Plan reassessment criteria will be tightened so unscheduled reviews are harder to trigger.

Stronger oversight of providers

Provider registration is set to broaden, and a new digital payment system will track how funds are spent. The intent is fewer surprises at audit, more consistency between participants with similar needs, and a real reduction in fraud and misuse. Quality providers should not feel this as a burden — it should make the playing field fairer.

New programs alongside the NDIS

The Government has committed an additional $200 million to rebuild capability in community organisations. Expect new state-run early-intervention programs, particularly for children with milder developmental needs (the proposed Thriving Kids program is one example). These supports are still being designed.

Plan-level changes

• Standard assessments — most participants will go through a similar functional assessment.
• Clearer, more standardised budgets across similar needs.
• Plan reassessments based on standard tools rather than ad-hoc reviews.
• No carry-over of unspent funds.

The new framework planning tool is currently slated for 1 April 2027 — well over a year away.

What happens next

The 2026–27 Federal Budget lands in May, followed by the introduction of the Securing the NDIS for Future Generations Bill. The Government has committed to working with the disability community and state governments through the design phase, so participants and providers will have opportunities to comment.

What we'd suggest right now

Reform fatigue is real. Our advice to SafeSpace participants and families is practical: keep using the supports you have, document what is working in your plan, and stay connected with your coordinator. If your plan review falls in the next twelve months, ask early about how the new assessment approach might shape it. We will keep tracking the detail as it lands and translate the announcements into plain-English notes you can act on.

If you want to talk through what the reforms might mean for your specific situation, contact us. There is no obligation — we'd rather you hear it from someone who knows you than worry about it alone.