The Australian Government has announced a significant package of NDIS reforms. The NDIS has grown faster than originally planned, now supporting around 760,000 customers at a cost exceeding $50 billion each year. Without reform, participation was forecast to reach 900,000 by 2030.

The government says these changes are designed to: 

• Protect funding for people with significant and permanent disability
• Improve fairness, quality and consistency
• Tighten controls on fraud and misuse
• Help ensure the NDIS remains sustainable for future generations

The NDIA is introducing a new planning framework that looks more closely at how a person’s disability affects everyday life, rather than relying on diagnosis lists.

Key features include:

• A stronger focus on functional capacity (how disability impacts day‑to‑day activities)
• Clearer explanations of reasonable and necessary supports
• Improved consistency and transparency in planning decisions
• Better support for customers to understand how their budget links to their goals

Transition to the new planning model is expected to begin from 1 April 2027, with changes introduced gradually rather than all at once.

Over time, access to the NDIS will become more targeted:

• Diagnosis‑based access lists will be removed
• Eligibility will be based on standardised functional assessments, focusing on how disability affects daily life
• A Technical Advisory Group will work with the disability community and states to design these assessments
• New eligibility boundaries will apply to prospective customers from 1 January 2028, with current customers reassessed over a transition period

For people who no longer qualify for the NDIS, the government has committed to developing alternative Foundational Supports outside the Scheme.

To strengthen community‑based alternatives, a new $200 million Inclusive Communities Fund will invest in rebuilding genuine community opportunities in consultation with the disability community.

Some funding categories will change over time: 

• Funding for social and community participation (such as group activities, community programs and supported outings) will be reset
• Average customers spend in this category is expected to reduce from around $31,000 to $26,000 over the next two years, returning to roughly 2023 levels
• These changes will roll out progressively from 1 October 2026

The government has confirmed these changes will not affect supports essential to critical care and daily living needs. 

If you’re already a NDIS customer, there is no immediate loss of access. 

Over time, you may see:

• Unscheduled plan reassessments restricted to exceptional circumstances only
• An end to unspent plan funds rolling over into the next plan period
• Gradual funding adjustments in some areas, particularly social and community participation
• Reassessments and renewals using the new planning framework from February 2027 onward

Essential daily living and critical supports are expected to continue to be funded.

The government plans to move support coordination and plan management to a commissioned model, selecting providers from a government‑vetted list. The aim is to improve quality and consistency and reduce spending in this area by around 30 per cent.

What this means:

• Customers will still have choice, but within an approved provider list
• New plan management commissioning begins 1 October 2027, with a six‑month transition
• A new support coordination function follows from 1 July 2028
• Consultation on commissioning for Supported Independent Living (SIL) begins July 2026

To improve safety, integrity and fraud prevention:

• More providers will be required to be registered, particularly for personal care and daily living supports
• Mandatory registration will expand progressively from July 2027 through to the end of 2030
• Providers will move to enhanced digital payment systems, improving NDIA visibility and oversight

• 1 July 2026: Mandatory registration for SIL and platform providers begins 
• 1 October 2026: Social and community participation budget adjustments begin 
• 1 February 2027: Tighter reasonable and necessary assessments for new entrants 
• 1 April 2027: New Framework Plans roll out 
• 1 October 2027: New plan management commissioning begins 
• 1 January 2028: New eligibility boundaries apply to prospective customers 
• 1 July 2028: New support coordination function commences 
• End of 2030: Full implementation of expanded provider registration

• Changes are gradual, not overnight
• Continue using your current plan as normal
• You may need clearer evidence at reassessment or renewal
• Support remains available to help you understand and prepare

We are committed to walking alongside you as these reforms are introduced. If you have questions or would like help preparing for upcoming changes, please contact our team at [email protected] or 1300 135 886.