Proposed cuts to social activity funding under the National Disability Insurance Scheme (NDIS) will disproportionately affect Australians with visual impairment, psychosocial disability, and Down syndrome, according to a government analysis. The Department of Health is aiming to reduce social, civic, and community participation (SCCP) budgets by 50% by the end of 2027, as part of broader efforts to curb the scheme's rising costs.
The Office of Impact Analysis (OIA) report, which examined options to improve the quality and cost of the NDIS, found that people with visual impairment are most affected, with an average of 34% of their plans allocated to social participation, equating to a six-month budget of $13,233. For those with psychosocial disability, about 30% of funding is typically reserved for social activities, while for individuals with Down syndrome, it is around 28%.
The changes, introduced by Health Minister Mark Butler, are expected to save $36.2 billion and reduce the NDIS growth rate to an average of 3.6% until 2030. The scheme currently supports 774,456 participants as of March 2026, and the cuts are projected to affect around 600,000 people who will remain on the NDIS. The government spokesperson defended the reductions, stating they are necessary to return funding to 2023 levels and would not result in a reduction for all participants, as many do not fully utilise their allocated social budgets.
However, advocates have criticised the cuts as heartless, particularly amid rising living costs. Megan Spindler-Smith, acting chief executive of People with Disability Australia, said: 'It's heartless to cut supports we need to leave the house, work and study at a time when the cost of living has dramatically increased and alternatives are simply not there.' The OIA report acknowledged that the reductions would impact some disability groups more significantly, but noted that the decision was preferred over other options because it does not affect participants' health and safety.
