2026 NDIS Reform Explained: Eligibility Changes, Funding Cuts & What Families Need to Know

NDIS Reform 2026: Key Changes Announced by the Government

The Hon. Mark Butler MP, Health Minister has outlined the biggest “reset” of the NDIS since it began, saying it must be protected from “shonks, grifters and crooks” and kept affordable for future generations. The Key changes announced include:

• Funding for Social and Community Participation will be cut
• Eligibility Changes to the NDIS will be far reaching
• Consolidation of Intermediaries including Plan Managers is expected

Without changes, NDIS costs were projected to hit about $70 billion a year by 2030 and the Government want to bring this down to $55 billion by 2030. 

The main way they plan to do this, is by fewer people accessing the scheme and bringing down the average plan size, stopping fraud and improving the quality and safety of services.

For families this means it will be harder to get into the NDIS, plans will be smaller, rules will be tighter on how the funding can be spent and there might be fewer providers to choose from.

Let's dive a little deeper into what we know so far:

 1. Changes to social and community participation (the “social outings” part of plans)

This is one of the biggest changes for families, because it affects the supports that get people out into the community with a support worker. 

• Spending on social and community participation has tripled in five years from about $4 billion to more than $12 billion. 

• The government plans to reduce this part of budgets by 30%. 
• Average plan spend for this category is expected to drop from $31,000 to around $26,000 over two years. 
• Advocates warn that for some people these supports are their “only interaction with the outside world”.
• A new $200 million Inclusive Communities Fund will provide grants to sports clubs, arts groups and both mainstream and disability community organisations.

For families, this likely means less paid “going out” time with support workers, and more pressure to use local clubs and community programs. 

 2. NDIS Eligibility changes: who gets onto the NDIS, who might be moved off

The rules about who can access the NDIS are shifting away from a “diagnosis gate” towards a focus on functional capacity. 

• Access will be based on “significant reduction in functional capacity that impacts day‑to‑day living”,

• A diagnosis or being on an “access list” will no longer give you access to the NDIS.  
• About 160,000 people will be transitioned out of the NDIS, to bring participant numbers down from 760,000 to 600,000 by 2030.
• The focus will be on autistic children and children with developmental delay or psychosocial disability with lower support needs. 

The Commonwealth has committed $6 billion to help states build “foundational supports” to fund services outside the NDIS for this group. 
This means a diagnosis alone will not guarantee access, and some children may be directed to school‑based, health or community programs rather than the NDIS, even if they are currently on the scheme. 

 3. Fraud crackdown, Digital Payments, Plan Managers & Intermediaries

The government is targeting fraud and “plan inflation”, particularly where the NDIA cannot easily see what is being claimed and why. 

• The NDIA currently has no visibility of evidence for about 90% of claims submitted by plan managers and providers. 
• A new digital payment system will require providers to submit evidence with claims, and NDIA will pay them directly. 
• Spending on intermediaries such as plan managers and support coordination is expected to drop by 30%.
• People will be able to select their intermediary from a list of Government vetted panel.
• The government will also commission a ‘new, more efficient support coordination and connection function’ from 1 July 2028.

People can expect fewer options when choosing plan managers and support coordinators.

4. Changes to Plan Review

• On average Plan Reviews result in 20% increase in plan value and are seen as a major cost driver.
• The criteria for unscheduled plan reassessments will be limited to exceptional circumstances.
• New unscheduled plan reassessment rules will be included in the new Bill and will be effective within 7 days.
• No more plan roll overs / unspent plan funds being rolled over. 
• Further guidance on the reasonable and necessary criteria 

Families can expect more questions at plan reviews and closer checking of evidence.

How will the 2026 NDIS Changes Affect Families?

The overall impact for many families is a tighter, more rules‑based NDIS that still exists, but feels less generous and more closely policed. 

• Social and community funding to be cut by close to 20%
• People will have access to fewer supported outings 
• More reliance on mainstream clubs and community activities 
• Kids with lower support needs to move onto “foundational supports” like Thriving Kids or state‑run programs. 
• Plan reviews will have more focus on evidence, outcomes and building independence.
• Plan managers and support coordinators who are proactive, transparent and evidence‑driven will be more important than ever in helping you navigate the new rules. 

For many families, the key will be to prepare well for reviews, clearly show how supports help your child function day‑to‑day, and there will be a need for many people to find community to fill the gap where NDIS supports were previously supported. 

What are Disability Advocates Saying About the NDIS Changes?

Advocates are warning that cost savings must not come at the price of inclusion and that families need clarity, not constant uncertainty. 

• I CAN® has made a joint statement responding to the Government announcement together with Amaze, Autism Valued, Different Journeys and Yellow Ladybugs: "Together we are not opposing reform, but calling for realistic timelines to prevent avoidable harm and ensure safe implementation."
• Many disability leaders argue that the NDIS must not quietly “push out” people with disability under the guise of savings. 
• The principle “nothing about us without us” is being repeated, with calls for genuine co‑design of any changes. 
• Autism advocates like Nicole Rogerson have emphasised that parents care less about what supports are called (“NDIS” vs “foundational”) and more about whether they are timely, evidence‑based and fit‑for‑purpose. 
• Organisations and policy experts (including Disability Services Consulting) are urging government to provide a clear roadmap linking eligibility, pricing, foundational supports and provider regulation, so families are not stuck in “permanent transition”.

What do the 2026 NDIS Changes Mean for Providers?

The Government are trying to slow the growth of the NDIS, so this means that every provider will be operating in a lower‑growth, higher‑scrutiny environment, where evidence and value for money matter more than ever.

Recent and other previous announcements affecting providers include:

• Mandatory registration and a new tiered framework are central to lifting safeguards and shaping the market
• From 1 July 2026, Supported Independent Living (SIL) and platform providers must be registered with the NDIS Commission (with a transition period)
• A graduated registration/enrolment framework will bring many currently unregistered providers into at least a light‑touch regulatory net.
• A new digital payment system will change the way claims are submitted and checked.
• Plan managers and support coordinators that act as quality and compliance partners will be favoured and form part of the Government vetted panel

Where to Find Reliable Information on NDIS Changes

With so much noise and anxiety around these changes, using trusted information sources such as MyCareSpace is critical. If you are not sure which other sources can be trusted we recommend these:

• Read the Minister’s speech and Q&A on the Department of Health and Aged Care website to see the government’s position in full. 
• Check the NDIS news page for official updates on eligibility, planning and provider rules. 
• Follow reputable sector analysis from Disability Services Consulting and peak bodies for deeper dives and practical examples. 

NDIS Changes Timeline: When Will the New Rules Start?

The Government plans to make some changes immediately, while others will be rolled out progressively as follows:

• Legislate these changes as soon as parliament returns, with the aim of passing a new Bill by 30 June 2026.
• Form a Technical Advisory Group to work out the details of eligibility changes by the end of this calendar year, and rolling out changes to eligibility from January 2028
• All NDIS participants will need to have an eligibility reassessment at the time of plan reassessment (roll out of this unsure)
• The commissioning of plan managers will begin from 1 October, 2027 with a 6-month transition period.
• The government will  consult and design the commissioning of SIL services from 1 July 2028

For now we recommend that families chat to their providers about these changes and keep abreast of any further announcements, and continue gather as much information and evidence as required to support continuing need for supports.