Unpacking the NDIS reforms
estara has been closely watching the Australian Government’s announcement on reform of the NDIS (National Disability Insurance Scheme) scheme including
Minister Butler (Minister for Health and Ageing and Minister for Disability and the NDIS) announcements at the National Press Club on 22 April 2026.
While many of the details are still being worked through, we’ve unpacked our key takeouts for you below.
What was announced
The Minister for the NDIS, Mark Butler, outlined a package of reforms to “secure the future of the NDIS”, signalling a shift in both who the scheme supports and how it operates.
Key measures include:
Reduced participant numbers – new eligibility rules based on functional capacity are expected to reduce the scheme to around 600,000 people by the end of the decade.
Eligibility overhaul – access will move away from diagnosis and instead be based on a person’s functional capacity, in line with the NDIS Review.
Cost target – the Government is aiming to limit the scheme to around $55 billion by 2030.
Changes to social and community participation – funding will be reset to 2023 levels, with average spend reducing from around $31,000 to $26,000 per participant.
Expanded registration – mandatory registration will extend to higher-risk supports, with around 90 per cent of payments expected to go to registered providers.
Payment system reform – a new digital payment system will require provider enrolment and improve visibility of claims.
Commissioning introduced – new approaches will be implemented for plan management, support coordination and home and living supports, including provider panels.
Inclusive Communities Fund – $200 million to support community-based participation options outside the NDIS.
What happens next
Legislation will be introduced with the Federal Budget and targeted for passage by 30 June
Further consultation will occur on:
eligibility and assessment design
commissioning models
pricing reforms
foundational supports .
We understand that these changes may create uncertainty for clients over the coming months. estara will continue to review these impacts as the details become known and is committed to providing you with regular updates on these reforms and what they may mean for you. In the meantime, we encourage you to talk to your Support Coordinator or estara Client Service Coordinator about any concerns you have.
More information can be found be found on the links below.