Australia’s NDIS reforms to cut 160,000 participants and reduce costs

Consensus Summary

The Australian government has announced sweeping reforms to the National Disability Insurance Scheme (NDIS) aimed at reducing its cost from $70 billion to $55 billion by 2030. Health Minister Mark Butler revealed the changes at the National Press Club on April 21, 2026, including plans to remove at least 160,000 participants from the scheme by 2030, reducing the total number of participants from 760,000 to 600,000. The reforms will shift eligibility criteria from diagnosis-based access to assessments of functional capacity, introduce mandatory registration for more NDIS providers, and crack down on fraud and unscheduled plan reassessments. The annual growth rate of the NDIS will be slashed from 10.3% to 2% until 2030, representing a cut in real terms. The government also plans to reset social and community participation spending to 2023 levels and establish a $200 million Inclusive Communities Fund to support community organisations. Queensland is the only state yet to sign a bilateral agreement for the Thriving Kids program, which aims to support children with autism and developmental delays outside the NDIS. The reforms have drawn criticism from disability advocates, the Greens, and some state governments, who argue that the changes will leave many vulnerable Australians without adequate support. The Productivity Commission has warned that state and territory expenditure would need to grow by up to $1.09 billion annually to meet existing gaps in support for psychosocial disabilities, highlighting the challenges ahead in implementing the reforms.