Major changes to the National Disability Insurance Scheme are moving ahead following the passage of the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 through Parliament.
The legislation has generated significant discussion across the disability community, particularly following its passage through the Senate on 18 August after the Government and Coalition reached agreement on a series of amendments.
For NDIS participants, families and providers, the important question now is not simply what happened in Parliament, but what these changes could mean in practice.
Some changes will begin relatively soon, while others will be introduced progressively over the coming years.
Here is what we know so far.
The Bill was introduced to Parliament on 14 May 2026 as part of the Australian Government’s broader reforms to the NDIS.
According to the Department of Health, Disability and Ageing, the legislation focuses on three main areas:
The Government argues these reforms are necessary to make the Scheme sustainable and ensure it continues supporting people with permanent and significant disability into the future.[1]
However, many disability advocates, participants and members of the crossbench have raised concerns about the scale and pace of the reforms and how some measures could affect access to supports.
The Senate inquiry itself highlighted concerns around functional capacity assessments, reductions to some support budgets, automated administrative decisions, regional and rural service markets and whether alternative supports outside the NDIS will be available when people need them.[2]
One reason is the scale of the reforms.
The NDIS currently supports more than 770,000 Australians. The Government argues the Scheme has grown considerably beyond its original projections and says reforms are needed to manage future costs and improve the quality and integrity of supports.
Critics, however, are concerned that achieving those savings could result in some people receiving less funding or no longer qualifying for the Scheme.
Greens Senator Jordon Steele-John has been one of the most vocal opponents of the legislation, arguing that the reforms could negatively affect disabled people and their families.
Independent Senator David Pocock and disability advocates have also raised concerns that some reforms are moving ahead before replacement community and mainstream supports are fully established.
This is particularly important because some of the Government’s longer-term reforms are designed to shift people who do not meet the revised NDIS eligibility criteria towards mainstream, community and foundational supports.
One of the most immediate changes concerns social, civic and community participation supports.
From 1 October 2026, the Government says these budget allocations will be reduced by 50 per cent when affected participants go through plan renewal or reassessment.
Capacity Building Daily Activity budget allocations are expected to be reduced by 10 per cent.[3]
Importantly, the Government states that this does not necessarily mean every participant will experience an equivalent reduction in actual services, as some participants may not currently use their entire allocation.
The Government has also stated that critical supports will not be affected by this budget reset.[3]
However, this remains one of the most significant concerns for participants and providers.
Social and community participation supports can play an important role in helping people build independence, maintain relationships, participate in their communities and work towards their goals.
The Senate amendments introduced an additional pathway for some participants with high support needs to request a plan variation if the reduction affects their ability to receive 24-hour care.
The question will be how these reductions work in real situations.
A percentage reduction on paper can have very different consequences depending on where someone lives, the supports they require, transport availability, informal supports and whether suitable community programs already exist locally.
This may be particularly important in communities where services and programs are more limited.
Another major reform involves how eligibility for the NDIS is assessed.
Functional capacity already plays a role in NDIS eligibility, but the legislation creates a clearer framework around what constitutes substantially reduced functional capacity.
The Government plans to introduce a new eligibility assessment process based on functional capacity from 2028.[4]
A Technical Advisory Group is currently working on the assessment approach, and consultation on the new process is occurring before implementation.
This is an important distinction.
The legislation may provide the framework for the new assessment system, but the assessment tool itself is still being developed.
That means there are still significant details to work through regarding how functional capacity will be measured and how individual circumstances will be considered.
The Parliamentary Joint Committee on Human Rights previously raised concerns that changes to eligibility could restrict access to the NDIS if adequate alternative services are not available.[5]
For participants and families, this is an area worth watching closely over the next 18 months.
The rules around requesting an unscheduled plan reassessment are also changing.
Under the Government’s published guidance, an unscheduled reassessment will generally need to involve:
The NDIA will have up to 90 days to decide whether a plan should be varied or reassessed.
Different arrangements will continue to exist for situations involving crisis, emergency or fraud.
These provisions are expected to commence seven days after Royal Assent.[6]
For participants, this makes documenting changes in circumstances and support needs increasingly important.
Further changes are planned from 1 February 2027.
When an existing plan reaches its reassessment date, a renewed plan will be created.
Under the new arrangements, unused funding from the previous plan will not automatically roll into the renewed plan. The renewed plan will instead reflect the funding level assessed for the participant, adjusted for current prices.[6]
The Government is also introducing clearer criteria around what supports are considered reasonable and necessary.
These changes form part of the transition towards the new framework planning model.
Not every part of the legislation is focused on reducing participant funding.
The Bill also significantly strengthens the Government’s ability to address fraud, misuse and conflicts of interest within the NDIS.
Measures include stronger criminal and civil penalties, changes targeting kickback arrangements and misleading information, increased record-keeping requirements and broader compliance powers.
Participants and plan managers will also generally be required to retain evidence relating to NDIS support payments for three years.[6]
Protecting participants from fraud and exploitation has been a longstanding concern across the disability sector, so these elements of the reforms are likely to receive broader support.
The challenge will be ensuring stronger integrity measures do not create unnecessary administrative barriers for participants legitimately accessing their supports.
This may ultimately be one of the biggest questions arising from the reforms.
The Government’s approach relies partly on strengthening services outside the NDIS.
This includes foundational supports, the Thriving Kids program and the new Inclusive Communities Fund.
The Government has announced a $200 million Inclusive Communities Fund designed to help community organisations provide opportunities for genuine participation and inclusion.[7]
The concept is important.
If fewer supports are provided through individual NDIS plans, accessible and effective community-based alternatives will need to be available.
But availability can look very different from one community to another.
For areas such as the Hawkesbury, where people may face geographical distance, transport barriers and a smaller pool of services than metropolitan centres, locally designed programs and collaboration between organisations could become increasingly important.
Simply having a mainstream or community service technically available is not the same as ensuring that service is accessible, appropriate and able to meet the needs of people with disability.
With several reforms being introduced at different stages, it is important to remember that not every announced change will affect every participant immediately.
Some measures are due to commence in the coming months, while others, including the proposed new functional capacity assessment process, are still being developed ahead of future implementation.
Participants and families may want to:
For communities such as the Hawkesbury, it will also be important to watch how new community-based supports are developed locally. Access to a program on paper does not necessarily mean that the service is practical or accessible for every participant, particularly where distance, transport and limited service availability can create additional barriers.
The passage of the Securing the NDIS for Future Generations Bill is not the end of the NDIS reform process.
In many ways, it marks the beginning of another significant period of implementation and transition.
There is broad agreement that the NDIS needs to be protected from fraud, deliver quality supports and remain sustainable into the future.
The more difficult question is how these reforms can achieve those goals while ensuring people with disability continue to have access to the supports they need.
Over the coming months and years, much will depend on how the legislation is implemented, how new eligibility assessments are designed, how funding changes affect individual participants and whether promised community and foundational supports are genuinely available.
Support Agency will continue to follow these developments and share information as further details become available.
[1] Australian Government Department of Health, Disability and Ageing, NDIS Amendment (Securing the NDIS for Future Generations) Bill 2026.
[2] Parliament of Australia, Senate Community Affairs Legislation Committee, National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026.
[3] Australian Government Department of Health, Disability and Ageing, About the changes to the NDIS, including social, civic and community participation and capacity building budget changes.
[4] Australian Government Department of Health, Disability and Ageing, Securing the NDIS for future generations timeline.
[5] Parliament of Australia, Parliamentary Library, Bills Digest: National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026.
[6] Australian Government Department of Health, Disability and Ageing, About the changes to the NDIS, plan management and reassessment changes.
[7] Australian Government Department of Health, Disability and Ageing, Securing the NDIS for future generations.