Our Response To Proposed NDIS Changes
On Wednesday, the Minister for Disability and the National Disability Insurance Scheme (NDIS), Mark Butler, announced a series of proposed changes to how the NDIS will operate. These changes aim to limit the growth of the NDIS to 5-6% each year.
The Minister said the reforms are designed to strengthen the NDIS, reduce fraud, and support its long-term sustainability.
The NDIS plays an important role in our community. At Housing Hub, we want to see an NDIS that is fair, sustainable, and centred on people with disability – because everyone has a right to choose how we live, where we live, and who we live with.
Key changes:
Digital payments: The NDIS will move to a digital payment system. This means the NDIS can check claims from providers and make sure payments are accurate. The goal is to reduce fraud and prevent unsafe practices.
Mandatory registration for some providers: Providers who deliver higher-risk supports – such as personal care, daily living supports, and supports in closed settings – will need to be registered. This builds on existing requirements for Supported Independent Living (SIL) and platform providers from 1st July 2026.
Changes to registered providers: A standardised list of registered providers may be introduced for participants to choose from when accessing supports.
Commissioning of some supports: The government plans to commission some services, including SIL, plan management, and support coordination. More detail is needed on how this will work in practice.
New planning framework: A new planning framework is proposed, with a focus on delivering outcomes.
Other changes include:
Reduced funding for social and community participation: Funding for social and community participation will return to 2023 levels – reducing the average plan budget from around $31,000 to $26,000 per NDIS participant. To support this, a $200 million Inclusive Communities Fund has been announced to help local organisations create opportunities for people with disability to connect and take part in their communities.
Changes to eligibility and assessment: Eligibility will shift towards assessments based on functional capacity, rather than diagnosis, using a new ‘objective assessment tool’. The government has said this could reduce the number of people in the NDIS from around 760,000 to 600,000 by 2030. The Minister has said assessments will not target specific diagnoses.
Foundational supports: The Federal Government will work with states and territories to create ‘foundational supports’. These are local services for people with disability who may not be eligible for the NDIS but still want support in their daily lives.
Reduced unscheduled plan reassessments: Minister Butler announced new legislation to “get a grip” on drivers of NDIS and NDIS plan inflation, which he said would include reducing the number of unscheduled plan reviews a participant could have.
The Minister has raised important issues, and important questions remain. Like many others, we are very interested in the details about how these changes will work day to day. It should go without saying that people with disability must remain at the centre of the NDIS.
We support action to reduce fraud and improve payment safeguards. These steps are important for the long-term sustainability of the NDIS. We also support efforts to protect the social licence of the NDIS.
Housing Hub Chief Executive, Alecia Rathbone, agreed that while these are important points to address, the NDIS depends on people understanding its value in terms of outcomes for Australians – those who have disability now, and those who will acquire a disability tomorrow.
"When we talk about the NDIS, we can’t just talk about dollars in the budget," she said.
Any discussion about costs related to the NDIS must also remind people of the significant benefits of the NDIS to people with disability, and to the Australian community as a whole.
Alecia said: "We all have a responsibility to talk about the benefits of the NDIS as well as the costs. To tell the whole story of outcomes and inclusion. This responsibility is shared by politicians and policymakers, the media, advocacy and sector organisations like ours, and everyone who has been touched by the NDIS and understands its value. Inclusion isn’t a cost to manage – it’s a value to uphold.”
We are concerned by any changes that may have the effect of limiting people’s choice and control – particularly when it comes to housing and support. There are few things more important than maintaining control over who you live with, and how you are supported.
With the announcement of reducing unscheduled plan reviews – with the exception of special circumstances – we also seek more information about which circumstances participants can request a review and how, particularly during important transitional life stages.
We also share concerns raised by advocates about proposed reductions to social and community participation funding. Being part of your community is a key part of living well and maintaining independence.
Published: April 2026
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