Australia's National Disability Insurance Scheme (NDIS) is set for a significant revamp after Parliament passed legislation targeting the scheme's rapid cost growth and long-term sustainability. The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 passed Parliament on 19 August, with the legislation now awaiting Royal Assent. The reforms focus on eligibility, planning and funding arrangements, while giving the government greater powers to oversee providers and address fraud and misuse of NDIS funds.
One of the biggest changes will affect who can access the scheme. From 1 January 2028, new access requirements will focus on people with permanent and significant disabilities whose functional capacity is substantially reduced and affects their daily lives. The government says the change is aimed at returning the NDIS to its original purpose and ensuring resources are directed towards people with the highest support needs. Existing access arrangements will remain in place until 2028, while the government develops the assessment framework that will determine how functional capacity is measured.
The reforms will also change how participants receive and manage funding. The government is introducing a new planning framework intended to make plans more consistent and funding more closely aligned with individual needs. Rules around how NDIS funding can be used will be clarified, while additional safeguards have been included for participants who require continuous 24-hour support. The legislation also strengthens provider oversight and fraud and integrity measures. These changes follow concerns about the scheme’s rapid expansion: the NDIS now supports more than 770,000 people and is projected to cost about A$54bn in 2026, compared with its original design for roughly 410,000 participants.
With the legislation now passed, implementation will take place in stages, with some changes beginning after Royal Assent and others being introduced over the coming years.