The Australian Government has released details of proposed reforms to the National Disability Insurance Scheme (NDIS), outlining changes that could affect participants, providers, and future applicants over the coming years.

The reforms aim to improve the long-term sustainability of the NDIS while continuing to support Australians with permanent and significant disability. However, it is important to note that these reforms are not yet law. Most of the proposed changes depend on the NDIS Amendment (Securing the NDIS for Future Generations) Bill being passed by Parliament.

Why are these changes being proposed?

According to the Department of Health, Disability and Ageing, the reforms are designed to create a more consistent, evidence-based approach to eligibility, planning, and funding while ensuring the NDIS remains sustainable for future generations.

If approved, the changes would be introduced progressively between 2026 and 2030, allowing time for consultation and implementation.

Key proposed changes

New eligibility assessments from 2028

From 1 January 2028, people applying to the NDIS would complete a standardised functional capacity assessment. Eligibility would be based on how a person's disability affects their everyday life rather than their diagnosis alone.

Existing participants may be reassessed

Current NDIS participants would gradually be reassessed against the new eligibility criteria over a three-year period beginning in 2028.

Changes to participant funding

From October 2026, funding for some social, civic and community participation supports, along with some capacity-building supports, may be reduced as participant plans are renewed or reassessed.

The Government has stated that funding for essential daily living supports would remain unchanged.

A new planning framework

From April 2027, participant plans would gradually transition to a new planning process. Support needs assessments would help determine participant budgets based on functional capacity, life stage, and individual circumstances.

Changes for children

The Government has proposed that children aged eight and under with developmental delay or autism and lower support needs would transition to a new program called Thriving Kids from 2028.

Children with permanent and significant disability or higher support needs would continue to access the NDIS.

New requirements for providers

The reforms also include changes for providers, including:

  • New registration requirements for higher-risk providers.
  • Updated enrolment, payment, and record-keeping requirements.
  • Proposed changes to how plan management and support coordination services are delivered.

Consultation will continue

The Government has confirmed that consultation will continue throughout the second half of 2026 on several proposed reforms, including:

  • Functional capacity assessments
  • The new planning framework
  • Supported Independent Living (SIL)
  • Support coordination
  • Pricing reforms
  • The proposed Inclusive Communities Fund

A new Technical Advisory Group (TAG), made up of clinical experts, researchers, and people with lived experience of disability, has also been established to provide independent advice on future assessment approaches.