The Australian government has unveiled sweeping cuts to the National Disability Insurance Scheme (NDIS) as part of the 2026 federal budget, aiming to save $36.2 billion over four years by curbing the scheme's growth. Treasurer Jim Chalmers described the savings package as genuine economic reform, stating, 'It is all about saving the NDIS from itself.'
The changes, foreshadowed by Health Minister Mark Butler, will restrict access to the NDIS, returning it to its 'original purpose' of supporting people with significant and permanent disability. Participant payments are expected to be reduced by at least $37.8 billion until 2030, with the number of participants forecast to drop from 900,000 to around 600,000 by that year.
The National Disability Insurance Agency (NDIA) will see its workforce cut by 669 positions to 9,840 in the next financial year. However, the NDIS Quality and Safeguards Commission will gain nearly 200 additional staff as the government expands registration requirements for providers. A new standardised assessment tool for NDIS access will be implemented from 1 January 2028.
Butler will introduce legislation this week to overhaul the scheme, focusing on limiting unscheduled reassessments, which he identified as a major driver of spending growth. Without changes, the NDIS was on track to cost $95.8 billion by 2034-35. 'The NDIS costs too much and is growing too fast,' Butler said. 'Unless we take action to make it sustainable, it simply will not be there in the future for the Australians who need it most.'
Programs outside the NDIS for those no longer eligible will receive $3 billion over five years from the federal government, matched by states and territories. The Thriving Kids program for children under nine with autism and developmental delays will roll out from October, becoming fully operational by January 2028.
