NDIS reform and what this means

24 Apr

Minister Butler (Minister for Health and Ageing and Minister for Disability and the NDIS) has made an announcement on a reform of the NDIS at the National Press Club on 22 April 2026.

Securing the future of the NDIS for future generations

The Australian Government is taking the next steps to restore the NDIS to its original intent of supporting people with permanent and significant disability – and securing the Scheme for future generations

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. 

What you need to know 

The Government has announced a significant reset of the NDIS, focused on sustainability, integrity and returning the scheme to its original purpose.  
Eligibility will shift from diagnosis to functional capacity, with participant numbers expected to reduce to around 600,000 by 2030 (from 760,000 today).  
The scheme is expected to be limited to around $55 billion by 2030, compared to projections of more than $70 billion.  
New commissioning, registration and payment reforms will change how key parts of the market operate.

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 .