Minister Butler reveals changes to the NDIS
There’s been a lot of discussion lately about changes to the NDIS, and it’s understandable if it feels a little overwhelming. A recent speech by Minister Butler at the National Press Club outlined a series of changes to the NDIS over the next couple of years, with a wide variety of goals attached to them.
You may or may not be affected by these changes so it’s important to keep this in mind, everyone’s situation is different and it may be a little while before we have all the detail.
We’ve gathered together some of the key takeouts from the Minister’s speech so you can stay informed as we move forward together.
See the below table for a high-level breakdown of some of the key dates (dates are dependent on the NDIA and subject to change).
<p style="text-align: left;">SIL & Platform provider registration</p>
<p style="text-align: left;">Social & Community participation budget reductions start</p>
<p style="text-align: left;">Thriving Kids launches</p>
<p style="text-align: left;">Advisory group to finalise capacity assessment criteria ie: who is and is not eligible for the NDIS</p>
<p style="text-align: left;">New Framework Planning roll out proposed</p>
<p style="text-align: left;">Phase 2 Mandatory registration for higher risk supports ie: personal care & daily living supports</p>
<p style="text-align: left;">New plan management framework scheduled to commence</p>
<p style="text-align: left;">New eligibility rules rolled out for new scheme applicants</p>
<p style="text-align: left;">Thriving Kids fully rolled out</p>
<p style="text-align: left;">New support coordination and connection functions</p>
<p style="text-align: left;">Full registration and payment systems rolled out</p>
We’re on your team
We just wanted to start by saying that Government plans take time, there are still discussions happening and some of these changes may or may not come in affect.
There’s a way to go yet, but we’ll be here no matter what. We’ll share information as we know more and you can contact us any time should you need us.
We’ll keep processing invoices, making payments and doing all the things we usually do, and you should do the same.
Slowing the growth of the NDIS
Due to high rates of growth, the Government plans to slow Scheme growth to around 5–6% per year. So, while the Scheme will still grow, it will happen in a more controlled way.
What this means in practice is that the NDIS isn’t being cut, but spending will be more closely managed. The Government says the focus is on making sure the Scheme is still there for people who rely on it now and in the future.
Changes to participant budgets (especially social supports)
The Government highlighted spending for social and community participation having increased from $4B to $12B in 5 years and wants this spending to be reset back to 2023 levels.
This means the average participant spend could drop from $31k to $26k. Some participants may notice changes to their budgets, particularly in this category.
While this change will not be implemented overnight, it will be important for all participants to be clear on what are essential social and community participation for them and ensure there is adequate supporting evidence to support this.
New $200 million fund for community programs
A new Inclusive Communities Fund will invest in local programs and organisations to rebuild options outside the NDIS, so people aren’t relying solely on paid supports. Over time, this could mean more accessible, community-based opportunities that feel more natural and less service-driven.
Digital payments to improve transparency
A new digital payments system will be introduced to provide evidence for every claim and to pay providers directly.
The idea is that this will improve transparency and reduce misuse of funds. For participants, it hopefully means fewer issues with incorrect or questionable claims.
Mandatory registration for higher-risk providers
More providers will need to be formally registered, particularly those delivering higher-risk supports like personal care and daily living assistance – e.g. Supported Independent Living (SIL) providers.
This change is about lifting the standard of support and making sure people delivering more complex supports are properly qualified and monitored.
There is no reason to make any changes to your service providers now, once we know what the registration process looks like we will help communicate this with everyone.
New rules for who can access the NDIS
Eligibility will be based on a standardised functional assessment that looks at how much support a person needs in their day-to-day life, rather than focusing on diagnosis alone. This means the current Access Lists will no longer be valid.
According to Minister Butler, these changes are expected to reduce the number of people in the Scheme over time. A Technical Advisory Group will be set up to work through the details, with the intention of finalising the approach by the end of this year.
If implemented, the new eligibility process is planned to begin from January 2028, with all participants gradually reassessed as part of their regular plan reviews during a transition period.
Fewer people expected to be on the NDIS over time
As part of these changes, the number of people on the Scheme is expected to be lower than previously projected, settling at around 600,000 by 2030 (instead of growing beyond 900,000).
We recognise that cuts to participant numbers like this can be very distressing to participants and their families and support network.
It’s important to recognise there is still a long way to go to understand how this will be rolled out in reality and we will continue to keep you across significant changes to eligibility.
Changes to how plans are reviewed and increased
Currently, many plans are reassessed outside the usual review cycle, often leading to significant funding increases and these unscheduled reassessments will be reduced.
This could mean plan budgets may become more stable over time with fewer unexpected increases.
Tighter rules around claims and invoices
To make sure funding is being used as intended, all claims will need proper supporting evidence under the new system.
New planning system (coming next year)
A new planning system will be introduced from April next year, designed to make plans more consistent and fairer across participants. While it’s still being worked through, the Government says the goal is to reduce variation and make it clearer how funding decisions are made.
Our focus is you
We know that’s a lot to take on board now, these announcements do tend to have a whole bunch of talking points thrown in, which can be quite overwhelming.
The Plan Partners team will keep working through the detail as it arrives, and we’ll always be putting you and your support team first.
Additional resources
See below for some extra reading on the proposed changes.
Have Questions?
We realise there's a lot to think about, so feel free to get in touch if you have something you'd like to ask us.
The information in this article is correct at the time of writing but may be subject to change over time.
