Australia’s National Disability Insurance Scheme (NDIS) is set for a major overhaul, with Health Minister Mark Butler announcing sweeping reforms aimed at slowing the scheme’s rapid growth and tightening eligibility.
Under the changes, the $50 billion program will reduce its annual growth from around 10 per cent to 2 per cent over the next four years, with participant numbers expected to drop by 160,000 to around 600,000 by 2030.
Entry will be based on “standardised, evidence-based assessments of a person’s functional capacity,” limited to those who can demonstrate “a significant reduction in a person’s functional capacity that impacts their day-to-day living.”
New eligibility rules are expected to begin from January 1, 2028 for new applicants, while existing participants will undergo “ongoing reassessment … over a period of time as their plans came out for renewable.” Butler said he hoped to finalise the framework by the end of the year.
The reforms also include freezing social and community participation funding at 2025 levels, a move Butler acknowledged would “have a material impact on participant plans.”
He criticised aspects of the current system, stating: “We’ve received reports of participants falling out of their wheelchair while a support worker is scrolling on their phone.”
Labor just announced plans to slightly reduce NDIS spending from $55 billion next year to $52 billion @PeteZogoulas
— Drew Pavlou 🇦🇺🇺🇸🇺🇦🇹🇼 (@DrewPavlou) April 22, 2026
There's no actual cut – they plan to do this by reducing the scheme's growth from 10% to 2%.
Senator Fatima Payman posted a video claiming that this will result… pic.twitter.com/z0DMT0djQV
He added the scheme must move away from a “let it rip,” “free for all market,” while ruling out means-testing, saying the NDIS is designed for “people who need lifelong support who overwhelmingly have pretty limited financial means.”
The announcement comes amid ongoing scrutiny of the scheme, including concerns over fraud and overcharging.
Earlier investigations by Drew Pavlou and Peter Zogoulas alleged some providers were exploiting the system, including billing inflated minimum hours for limited work.
In one case, a Sydney cleaning provider charged $236.06 for roughly 25 minutes of work before revising the invoice to $24.18 after being challenged.
On Wednesday, Pavlou weighed in on the reforms, writing: “Labor just announced plans to slightly reduce NDIS spending from $55 billion next year to $52 billion … There’s no actual cut – they plan to do this by reducing the scheme’s growth from 10% to 2%.”
He argued the current system poses risks, claiming “the failed market system continues to allow organised crime gangs to infiltrate the NDIS and threaten participants,” and described the reforms as “like trying to throw a tea spoon of water on a bush fire.”
The NDIS, which supports more than 600,000 Australians through services such as care, therapy and transport, has faced increasing pressure in recent years over costs, misuse and sustainability, prompting the government to pursue stricter oversight while maintaining essential support.
Source: The Advertiser.
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