NDIS changes announced: what you need to know

Today, the Minister for Health, Disability and Ageing, Mark Butler, announced a series of proposed changes to the National Disability Insurance Scheme (NDIS).

These changes are significant and will affect how people access the scheme, how plans are managed, and how services are delivered over time. While many details are still to be worked through, the direction of reform is now clear.

This article sets out the key announcements in straightforward terms.

A major shift: moving away from diagnosis-based access

One of the most important changes announced is how people will qualify for the NDIS.

Until now, a formal diagnosis, such as autism, has often been a central part of accessing the scheme. The current system uses “access lists” to help determine eligibility based on diagnosis.

The Government has announced that this will change.

What is being proposed

• The current diagnosis-based “access lists” will be removed
• A diagnosis alone will no longer be enough to qualify for the NDIS
• Access will instead be based on a person’s functional capacity

Functional capacity refers to how much a person’s disability affects their ability to manage everyday life. This includes areas such as communication, learning, self-care, social interaction, and daily living.

The Government plans to introduce a standardised, evidence-based assessment to measure this.

What this means in practice

• People will need to demonstrate a significant impact on day-to-day functioning to qualify
• Two people with the same diagnosis may have different eligibility outcomes
• Some people who currently qualify for the NDIS may not qualify under the new system

Timing

• The new assessment model will be developed over the next 12 to 18 months
• It is expected to begin for new participants from January 2028
• It will then be applied to existing participants over time, as plans are reassessed

Changes to participant plans

The Government also announced changes to how funding is allocated within participant plans.

Social and community participation

Spending on social and community participation supports will be reduced overall.

This category of funding has increased significantly in recent years. The Government has stated that average budgets in this area will, over time, be brought back to 2023 levels.

The exact impact will vary between participants, depending on their current plans and level of use.

Unscheduled plan reassessments

The criteria for unscheduled plan reassessments will be tightened.

Currently, a large number of plans are reassessed outside the usual review cycle. Under the proposed changes:

• Reassessments will be limited to exceptional circumstances
• This is intended to reduce rapid increases in plan budgets

Changes to plan management and support coordination

The Government plans to reduce spending on plan management and support coordination.

Key changes include:

• A move to a government-approved list of providers
• A reduction in overall funding for these services
• A shift toward commissioning services from selected providers

Participants are expected to retain choice, but only within a more limited, approved provider panel.

Increased provider regulation

Changes will also be made to how providers operate within the NDIS.

Registration

• More providers will be required to be formally registered
• Registration will be mandatory for higher-risk supports

Market changes

The Government has indicated a move away from the current open market model toward a more regulated system, particularly for certain services.

Introduction of a digital payment system

A new digital payment system will be introduced across the scheme.

This is intended to:

• Improve visibility of how funds are spent
• Strengthen oversight and compliance
• Reduce fraud and misuse of funds

‍Changes to the size and growth of the NDIS

The Government has also outlined its intention to reduce the growth of the scheme.

• Growth in NDIS spending is expected to slow significantly in the coming years
• The overall number of participants is projected to decrease over time

This reflects a broader policy direction to refocus the scheme on people with significant and permanent disability.

Development of supports outside the NDIS

Alongside these changes, the Government confirmed that it will continue developing foundational supports outside the NDIS.

These are intended for people who:

• Do not meet the revised eligibility criteria
• Require support but not at the level provided by the NDIS

These supports will be developed in partnership with state and territory governments and delivered through community-based systems.

‍What happens next

Some changes, particularly those related to plan management and reassessments, are expected to begin this year through new legislation.

Other changes, including the new eligibility model based on functional capacity, will take longer to develop and are not expected to begin until 2028.

Many details remain to be confirmed, including how functional capacity will be assessed and how new support systems outside the NDIS will operate in practice.

‍Final note

Today’s announcement sets the direction for the next phase of NDIS reform.

While the full details are still to come, the key changes are:

• Access to the NDIS will change
• Some areas of funding will be reduced
• The system will become more regulated
• Alternative supports outside the NDIS will be expanded

We will continue to provide clear, factual updates as more information becomes available.

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Read more

You can read the full speech here: Minister Butler speech at the National Press Club – 22 April 2026

You can read more about the changes here: Securing the NDIS for future generations- Department of Health, Disability and Ageing

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