Our Response To The 2026–2027 Federal Budget

Weeks after the Minister for the National Disability Insurance Scheme (NDIS) announced proposed changes to limit growth of the NDIS with the intention of ensuring its long term sustainability, the Federal Government has released the 2026–2027 Federal Budget. 

NDIS Minister Mark Butler put forward several key changes last month. The latest Budget confirms some of these, alongside other areas funding will go to.

Budget Breakdown

The Budget shows the Government has allocated $1.7 billion over 5 years, and $110.9 million per year after that, to put these changes into practice.

The Government expects these changes to save a total of $37.8 billion over the next 4 years.

The latest Budget was published on 12th May.

Confirmed changes & funding allocations

  • Digital payments: $358.5 million over 5 years.
  • Mandatory registration for some providers: $182.6 million over 4 years, then $46.1 million each year after that.
  • Supports: $49.4 million over 4 years to commission plan management and support coordination. The Government still plans to learn from the sector to decide a commissioning approach for home and living supports for people who use Supported Independent Living (SIL).
  • Planning frameworks: $270.1 million over the next year, with the roll-out to begin in April 2027.
  • Inclusive Communities Fund: $200 million over 3 years to support social and community participation.
  • Eligibility and assessments: $3.3 million for 2026–2027 to set up a Technical Advisory Group and design a new functional capacity assessment tool to help determine NDIS eligibility. The Government also plans to provide clearer guidance on what reasonable and necessary supports are.
  • Foundational supports: $10 billion over 5 years, shared 50-50 with state and territory Governments to create local Information, Linkages and Capacity Building (ILC) programs. 
  • Fewer unscheduled plan reassessments: A reduction in the number of unscheduled plan reviews a participant can have, except in special circumstances.

Funding for other NDIS-related areas

  • Fraud Fusion Taskforce: $280.1 million over 5 years, then $53 million each year after that.
  • NDIS reform consultation: $48.4 million over 3 years for the Government and National Disability Insurance Agency (NDIA) to talk with the community.
  • Consultation with Disability Representative Organisations: $15.9 million over 4 years, then $6 million each year after that.
  • NDIA operations: $436 million across 2026–2027 to make sure the NDIA can continue to support participants.
  • NDIS Commission: $21.7 million over 4 years, then $5.8 million each year after that for regulatory and compliance activities.
  • NDIS Appeals program: $14.7 million over 2 years to extend extra funding.

Our Response

At the Housing Hub, we understand how important the NDIS is to people with disability and the people who support them. 

These changes aim to strengthen the NDIS, reduce fraud, and make sure it is here for the long term. However, we believe it is vital to understand how these big changes will work day-to-day and how they will affect the people who use the NDIS.

We want an NDIS that supports people’s right to choose how to live, where to live, and who to live with. We remain concerned about changes that might limit people’s choice and control.

We still need more clarity about several parts of this Budget, including:

  • How new unscheduled plan review criteria will be applied in practice
  • How foundational supports will be set up
  • How the new functional capacity assessment tool will be established and then delivered
  • How 'reasonable and necessary' supports will be redefined

These details will help make sure the NDIS is transparent, public confidence in the Scheme is strengthened, and its importance is recognised.

“At its core, the NDIS is a promise to all Australians: If you have disability now, or you acquire a disability tomorrow, you will get the support you need,” says Housing Hub Chief Executive, Alecia Rathbone.

“The real value of the NDIS is measured in lives improved and futures changed. The NDIS doesn’t just need to be sustainable – it needs to be understood.

“The social licence of the NDIS depends on people understanding its value in terms of outcomes for Australians.”

Article published: May 2026

Questions about NDIS Housing?

Call our NDIS Housing Advice line

1300 61 64 63

For NDIS participants, their families, and supporters. Monday – Friday 10.00am – 4.00pm AEST. You can also email us anytime at housingoptions@housinghub.org.au.

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