Minister announces major changes to the NDIS

Yesterday, NDIS Minister Mark Butler addressed the National Press Club with a range of sweeping reforms. The goal is clear: to return the scheme to its original intention of supporting Australians with significant and permanent disability.

It is rare to see a Minister willing to make genuinely hard decisions for the long term. While no reform package of this scale is perfect, we recognise this as a serious and credible start to making the NDIS a sustainable national asset. For participants and families, we know that structural shifts cause uncertainty and stress. However, we believe that providing accurate, reliable information is the best way to support our community. Knowledge is a safeguard, and our aim is to help you navigate this transition with clarity and confidence.

Securing Financial Sustainability

The scheme is projected to cost $52 billion this year, reflecting a 10% growth rate. The government’s objective is to moderate this to 5% by the end of the decade. The Minister was candid, stating that while hard choices cannot wait, the scheme is too important to be allowed to fail.

Minister Butler was right to frame this in generational terms. The NDIS has delivered dignity and life-changing support to hundreds of thousands of Australians, and it must be durable to continue doing so. By stabilising costs, the government aims to ensure the scheme remains a national asset that Australians can trust for decades to come.

Cost Reductions and Functional Eligibility

The government is targeting a participant threshold of 600,000 by 2030, but the focus is shifting from "who has what diagnosis" to "how does this impact your life?" This re-centring of access around functional need is a sensible direction that is both fairer and more sustainable.

Functional Access: Clearer eligibility requirements will be introduced using a standardised tool (the ICAN tool). This focuses on functional impairment rather than just a medical label, ensuring support is based on real-world impact.
Revised Timelines: To ensure a smooth transition, the rollout of new framework plans has been moved to April 1, 2027, with new eligibility requirements flagged for January 1, 2028.
Targeted Spending: The Social and Community Participation budget, which grew from $4 billion to $12 billion in five years, will be reviewed. The goal is to bring the average participant spend back to approximately $26,000, which aligns with 2023 levels.
Intermediaries: Plan Management and Support Coordination will see new commissioning models aimed at reducing market saturation and cutting administrative spending.
Plan Inflation: To reduce "plan inflation," legislation will be introduced to limit unscheduled reviews, which currently affect one in five plans, to exceptional circumstances only.

Integrity and Fraud Reduction

A scheme of this importance cannot operate on trust alone, and the government’s push for accountability should be widely welcomed. The NDIA currently processes 600,000 claims a day without full visibility, an untenable situation for any national program.

Digital Transformation: A new digital payment system will be proposed for all providers. We strongly support this move because digitisation is the key to efficiency. Every dollar saved through smarter administration is a dollar that can be redirected to frontline support. In fact, we have already been developing digital invoice solutions that meet ATO standards to ensure transparency.
Mandatory Registration: Currently, only 6% of providers are registered. The government will expand mandatory registration to higher-risk activities, such as personal care and daily living. This ensures that good operators do not have to compete with poor standards or those exploiting loopholes.

States and Territories: Rebuilding the Foundation

The emphasis on rebuilding supports outside the NDIS is overdue. For the scheme to be sustainable, there must be support available in the broader community. The government has reserved $10 billion for foundational supports, including:

$6 billion for localised community supports delivered by the states.
$200 million for a new Inclusive Communities Fund to help local organisations rebuild their capacity to welcome people with disabilities.
Thriving Kids: A $4 billion program for children under 9, ensuring early intervention is accessible in the community. This provides families with clear pathways and alternative supports outside the NDIS.

The Four Pillar Plan

The government’s roadmap to secure the NDIS rests on four pillars:

Fighting fraud and stopping rorts
Slowing rapid cost increases
Clearer eligibility requirements
Delivering quality services and support to participants

The Minister stressed the foundational principle: “Nothing about us, without us!” While yesterday’s announcement provides a sound direction, the disability community's consultation will determine the final destination. Execution will be the true test, but these changes move the country closer to an NDIS that is trusted, sustainable, and capable of supporting future generations. Something we strongly support.

You can read the full speech here.