State ministers criticize Albanese government’s NDIS overhaul plan
Consensus Summary
State and territory disability ministers have united to criticize the Albanese government’s proposed overhaul of the National Disability Insurance Scheme (NDIS), warning that the reforms could leave over 200,000 participants without adequate support by 2031. The government’s plan, aimed at reducing the scheme’s annual growth from 11.3% to 5–6% and saving $36 billion over four years, faces opposition from states, the Coalition, and Greens over concerns about participant safety and lack of consultation. Ministers argue the changes risk shifting costs to underprepared state systems, potentially forcing people with disabilities into hospitals or leaving them without services. Meanwhile, the federal government insists the reforms are necessary for long-term sustainability and plans to pass the legislation before parliament’s winter break in early July. The Thriving Kids program, designed to divert children with low-to-moderate needs from the NDIS, is set to launch in October, with Victoria detailing its early assessment approach. Both sources agree the Senate inquiry is critical, though the ABC notes it is concluding soon, while the Guardian suggests extending it may be necessary.
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Key details reported by multiple sources:
- State and territory disability ministers submitted a joint submission to the Senate inquiry warning the NDIS overhaul risks participant safety and lacks clearly defined alternative supports.
- The Albanese government’s proposed NDIS changes aim to reduce the scheme’s annual growth from 11.3% to 5–6% by 2028, with 200,000–240,000 participants expected to be shifted off the scheme by 2031.
- The Senate inquiry into the NDIS bill is scheduled to report next week, with the federal government pushing to pass the legislation before parliament’s winter break on July 2, 2026.
- The NDIS currently supports over 774,000 participants and costs $50 billion annually, with the government proposing $36 billion in savings over four years.
- The Thriving Kids program, designed to divert children under nine with low-to-moderate support needs from the NDIS, is set to begin rolling out in October 2026, with Victoria announcing its first details.
- NDIS Minister Mark Butler stated the government’s plan was ‘very carefully thought through’ and outlined months ago at the National Press Club, dismissing calls to extend the Senate inquiry.
- State ministers criticized the federal government for unilateral powers granted to the NDIS minister, calling for ‘genuine and meaningful consultation’ and shared governance.
Points of Difference
Details reported by only one source:
- Mark Butler mentioned the government was ‘carefully watching’ the Senate inquiry and referenced the plan’s announcement at the National Press Club.
- The ABC article notes the Coalition and Greens oppose the bill, while state ministers warned of ‘fragmented service delivery’ and ‘inappropriate settings’ for participants.
- The article specifies that Queensland is the only jurisdiction not yet signed up to deliver the Thriving Kids model in exchange for hospital funding.
- A government spokesperson stated national cabinet agreed in January 2026 to cut the scheme’s annual growth to 5–6%.
- The ABC highlights that the Senate inquiry received over 4,000 public submissions in two weeks.
- The Guardian emphasizes that state ministers were not ‘meaningfully consulted’ on the proposed changes, framing it as a ‘broader shift away’ from shared governance.
- The article includes a quote from Victorian Minister Lizzie Blandthorn detailing Thriving Kids’ two developmental assessments for children before kindergarten and primary school.
- The Guardian notes the Coalition’s opposition leader, Angus Taylor, said the inquiry should be longer but did not specify a deal with the Greens.
- The article highlights that 50% cuts to social and community participation budgets would increase isolation and unsafe situations for participants, though Butler did not address this directly.
Contradictions
Conflicting information between sources:
- The ABC states 300,000 people may be ‘kicked off or prevented from accessing’ the NDIS, while the Guardian cites department modelling showing 240,000 participants expected to be shifted off by 2031.
- The ABC mentions the Senate inquiry is wrapping up today (June 11, 2026), while the Guardian does not specify a timeline for its conclusion beyond ‘next week.’
Source Articles
State disability ministers lash NDIS overhaul
State and territory disability ministers have accused the Albanese government of pushing on with NDIS reform that does not align with previous agreements.
States tell Albanese government that NDIS changes could mean people with disabilities are shifted into hospitals
Plan to move 240,000 people off scheme leads states and territories to jointly warn they can’t ‘deliver like-for-like services to people who are exited from the NDIS’ Follow our Australia news live blog for latest updates Get our breaking news email , free app or daily news podcast State and territory disability ministers have rung alarm bells over the Albanese government’s proposed overhaul of the NDIS, warning they can’t deliver “like-for-like services” for more than 200,000 participants expec