The National Disability Insurance Scheme is going through one of its biggest reform periods since it began. Some changes are already affecting the way participants use their plans, while other major reforms are still proposed and have not fully started. As at 25 June 2026, the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 is still before Parliament, with a Senate committee final report due on 14 August 2026.
For participants and families, the most important point is that not everything changes straight away. The NDIS has said that participants can keep using their current plans, do not need to do anything immediately, and that current rules and planning arrangements stay the same until after the law is passed.
Clearer rules may reduce confusion, but also reduce flexibility
One of the biggest practical changes is the clearer definition of what counts as an NDIS support. The NDIS now uses lists to explain what can and cannot be purchased with plan funding. Participants can only use their funding for supports that are NDIS supports, related to their disability, and in line with their plan.
This could make decisions more consistent for participants, plan managers and providers. It may reduce confusion about what is allowed, especially in situations where the line between disability support, mainstream services and everyday living costs has been unclear.
However, clearer rules can also mean less flexibility. Some supports that participants previously used may no longer fit within the approved categories. The NDIS also says funding cannot be spent on items that are not NDIS supports, and participants may be asked to repay money if funding is used for things that are not NDIS supports or not in line with the plan.
Funding periods will change how people manage their plans
Another change is the use of funding periods in NDIS plans. A funding period is the amount of time during which part of a participant’s funding is available. The NDIA says funding periods can apply to the whole plan or to specific parts of a plan, and that the length and amount of funding periods are set in line with NDIS laws and the participant’s circumstances.
This may help some participants manage their budgets and avoid spending too much early in a plan. But it may also create problems for people whose support needs are uneven across the year, or who need large supports or purchases upfront. The effect will depend on how well the NDIA considers each person’s individual situation.
Planning is moving toward support needs assessments
The NDIS is also moving toward a new way of planning. The NDIS has said that, from April 2027, it will start a new planning approach intended to make planning fairer and easier.
Under the model described by the NDIA, planning will include a support needs assessment. This is described as a guided conversation with a trained NDIS assessor to understand a participant’s disability support needs. The NDIA says the information from this assessment will help create a fairer and more flexible budget, and that plans will continue to be approved by trained NDIS staff rather than automated systems.
This could be positive if it reduces the need for participants to repeatedly gather expensive reports. It may also make planning more consistent. However, disability representative organisations have raised concerns that important details about the planning reforms remain unclear, making it difficult for the disability community to give fully informed feedback.
Eligibility may become tighter
The Federal Budget says the Government will place standardised, evidence-based assessments of functional capacity at the centre of determining access to the NDIS. The Government says this is part of returning the scheme to its original intent of supporting people with permanent and significant disability.
This means access may become more focused on how much a person’s disability affects their daily life, rather than diagnosis alone. That could be fairer for some people. But it may also create fear for people with psychosocial disability, autism, intellectual disability, chronic conditions or fluctuating conditions, especially if standardised assessments do not fully capture their real support needs.
Social and community participation is a major concern
One of the most debated changes is the proposed reset of social, civic and community participation supports. The Department of Health, Disability and Ageing says that from 1 October 2026, budgets for social, civic and community participation supports will be reset so that spending levels are, on average, in line with 2023 levels. The department says this reset includes a 50 per cent reduction in budget allocations for social, civic and community participation supports and a 10 per cent reduction in capacity building daily activity budgets.
The Government has also announced a $200 million Inclusive Communities Fund, intended to rebuild community organisations’ ability to host genuine participation activities.
In theory, this could help create more inclusive local communities. In practice, many participants and advocates are worried that individual supports may be reduced before strong alternatives are available. People with Disability Australia has argued that the Budget cuts supports people rely on to live ordinary lives without delivering equivalent alternatives first.
Providers will face stronger oversight
The Government has said the reforms will increase oversight of providers and payments, strengthen the NDIA’s investigative and enforcement powers, and introduce new regulatory controls to protect participants and the scheme from exploitation.
For participants, stronger oversight could improve safety and reduce fraud. For good providers, it may help create a more trustworthy market. But smaller providers may face extra compliance pressure, and some participants may worry about losing choice if provider registration and regulation become more restrictive.
Children and families may be directed to supports outside the NDIS
Another major part of the reform agenda is the Thriving Kids program. The NDIS says the Australian Government is working with states and territories to establish Thriving Kids, with a joint investment of $4 billion over five years. The program will support children aged eight and under with developmental delay and/or autism with low to moderate support needs.
This could help some families receive support earlier and outside an individual NDIS plan. However, the success of this change will depend on whether the new program is accessible, properly funded and available when families need it.
The bottom line
The new NDIS changes are designed to make the scheme more sustainable, clearer and less vulnerable to fraud. If implemented well, they could improve consistency, reduce confusion and strengthen provider accountability.
But the reforms also carry risks. Participants may experience less flexibility, tighter eligibility, reduced funding in some support categories, and uncertainty about how future assessments will work. The biggest issue is timing: community and foundational supports need to be strong and available before individual NDIS supports are reduced.
The NDIS was created to give people with disability more choice, control and opportunity. These reforms should be judged not only by how much money they save, but by whether people with disability can still live ordinary, safe and included lives.
References
Australian Government Department of Health, Disability and Ageing. About the changes to the NDIS.
Australian Government Department of Health, Disability and Ageing. NDIS Amendment (Securing the NDIS for Future Generations) Bill 2026.
Australian Government Treasury. Budget 2026–27: Strengthening care and broadening opportunity.
Australian Parliament House. National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026.
Disability Advocacy Network Australia. Joint Statement: Disability Representative Organisations call for clear and complete consultation on NDIS planning reforms.
National Disability Insurance Agency. Federal Budget and NDIS laws update.
National Disability Insurance Agency. What are NDIS supports?
National Disability Insurance Agency. Changes to NDIS funding periods.
National Disability Insurance Agency. Update on the new way of planning for the NDIS.
People with Disability Australia. PWDA responds to the 2026–2027 Federal Budget.