PROPOSED changes to the National Disability Insurance Scheme (NDIS) have prompted concern among advocates, with key details still unclear about how reforms will affect hundreds of thousands of Australians.
People with Disability Australia says many in the disability community are feeling “worried, confused and overwhelmed” following the Federal Government’s announcement of major changes to the scheme.
The reforms, outlined by Federal Minister for Health and Ageing Mark Butler at the National Press Club in April, aim to slow the long-term growth of the NDIS to around 5-6 per cent annually.
There are currently about 760,000 participants in the scheme, with the Government indicating that number could fall to around 600,000 by the end of the decade.
However, it has not detailed how this reduction would be achieved or who may be affected.
A key proposed change is a shift away from diagnosis- based access, with eligibility instead determined by how a person’s disability affects their day-to-day functioning. New standardised assessments are expected to be introduced from 2027 and phased in through to 2028.
While the Government says the changes are designed to improve quality, reduce fraud and ensure sustainability, advocates say significant questions remain unanswered.
Among the concerns is the potential impact on social and community participation supports, which help people leave their homes and stay connected. The Government has flagged plans to reduce spending in this area over time, with average plan budgets expected to fall.
PWDA has also raised questions about the rollout of “foundational supports” for people who may not qualify for the NDIS in future. These supports are yet to be fully designed and will depend on agreements with states and territories.
“There is a real risk people could lose support before alternatives are in place,” the organisation said.
The Government has also announced a new $200 million Inclusive Communities Fund aimed at supporting programs outside the NDIS.
Further reforms include expanding mandatory provider registration from July 2027 and introducing new digital payment and oversight systems to strengthen transparency and reduce misuse.
The new NDIS planning framework has been delayed until April 2027, with the Government acknowledging more design work is needed.
Advocates say one of the unresolved issues is whether participants will retain full access to independent appeals if decisions about their support are disputed.
