Overview

The Budget package is framed as “securing the NDIS for future generations.” The Government says the proposed reforms are expected to save $37.8 billion over four years, while the NDIS continues to grow each year.

For clarity, the Budget presents the reforms through broad policy pillars, but the Bill itself is structured into five schedules: access and planning, fraud, governance, new framework planning, and transitional rules.

1. Eligibility: functional capacity assessments

The Bill proposes that access would increasingly be based on substantially reduced functional capacity, using more consistent, objective and evidence-based assessments. A Technical Advisory Group would advise on thresholds and assessment processes, with consultation proposed to start in the second half of 2026.

For current participants and applicants, the Government states there are no proposed changes to how people access the NDIS until 1 January 2028.

2. Permanence rules: treatment requirements

The Bill proposes tighter permanence rules. It would require consideration of whether all appropriate treatment has been undertaken, whether further treatment is likely to materially improve the impact of the impairment, and whether the impairment is likely to be lifelong.

3. Supports must link directly to the qualifying disability

The Bill proposes that the NDIS would only fund supports where the need for the support arises directly from an impairment for which the participant met NDIS access criteria.

Practical impact: participants may face more scrutiny where supports relate to conditions or circumstances that are not the direct basis for NDIS access — including secondary mental health conditions, sleep disorders, or effects arising from the interaction between a disability and the environment rather than from the disability itself.

4. Unscheduled plan reassessments: tighter threshold

The Bill proposes that only participants, their plan nominee or guardian would be able to request an unscheduled reassessment.

Practical impact: fewer mid-plan adjustments unless the change in functional capacity is substantial and ongoing. People with degenerative conditions or whose circumstances change significantly — such as a school leaver or someone whose carer becomes unwell — may find it harder to have their plan updated before a scheduled review.

5. Plan renewal and unspent funds

The Bill proposes that all plans would have a legislated end date. When the reassessment date is reached, a renewed plan would be created immediately after, and unspent funds would not carry over into the renewed plan.

This makes budget pacing more important, particularly for participants with uneven support needs across the year or who rely on unspent funds as a buffer for unexpected events.

6. Budgets for some social and community supports may be reset

The Bill proposes that the Commonwealth Minister would be able to make determinations to reduce funding for groups of supports. The Budget specifically points to resetting budgets for social, civic and community participation and capacity building daily activities.

The Government also says it will provide $200 million for an Inclusive Communities Fund to help community organisations host participation activities, with consultation beginning in July 2026.

7. Thriving Kids: a major structural change for young children

The package also proposes a significant shift for young children through a new Thriving Kids program. The Budget allocates $2 billion for Thriving Kids as part of a $5 billion Foundational Supports commitment.

This is one of the largest structural changes in the package because it affects future NDIS access for a large early childhood cohort.

8. New Framework Planning delayed to 1 April 2027

New Framework Planning is intended to create more consistent participant budgets through support needs assessments and budget method rules. The rollout is now proposed from 1 April 2027.

The amendments would allow rules about how support needs assessments are conducted, who can conduct them, what assessors must and must not consider, and how budgets are calculated. Many of these details have not yet been set and will be determined through subordinate legislation after the Bill passes.

9. Claim timeframes: proposed reduction to 90 days

The Bill proposes that claims for NDIS supports would need to be made within 90 days of service delivery.

This matters for providers, plan managers and self-managed participants. Late invoicing or delayed claiming could become a real compliance risk if enacted.

10. Record keeping obligations

The Bill proposes that providers and participants would need to retain records about payment and receipt of NDIS amounts. Providers could face civil penalties for failing to keep required records, and individuals who receive an NDIS payment but do not keep records may owe a debt to the NDIA.

11. Stronger fraud, investigation and provider controls

The Bill proposes expanded mandatory registration requirements for providers delivering supports to participants most at risk of abuse or exploitation. It would also give the NDIA stronger civil penalty, monitoring, investigation and information gathering powers, including for criminal investigations and prosecutions.

Plan management is also affected: the Bill would clarify registration requirements for plan management providers and allow the Government to commission a panel of plan management providers.

12. Pricing decisions: proposed move to the Minister

The Bill proposes that the Commonwealth Minister would become the decision maker for NDIS pricing, while the NDIA would continue doing analysis and stakeholder engagement through the Annual Pricing Review.

13. Some administrative decisions may be automated

The Bill proposes that the NDIA would be able to automate some administrative actions, including claims and payment processing, with oversight and safeguards. The detail of how the automated system would work — including what data it uses, who enters it, and how decisions can be challenged — has not yet been set out and would be determined through instruments after the Bill passes.

What remains unsettled

Many of the most significant details in this package are not in the Bill itself. They would be determined later through rules, ministerial determinations and subordinate legislation — including the definition of “appropriate treatment” for permanence purposes, the design of the new framework planning assessment tool, the criteria for automated decision making, and the structure of the Thriving Kids program.

The Government has indicated consultation will occur in the second half of 2026 on eligibility assessments, new framework planning, SIL home and living commissioning, support coordination, differentiated pricing, the Inclusive Communities Fund, and market reforms.

What this means in practice

For participants, the main areas of risk in the proposed package are: tighter access rules based on functional capacity; stronger permanence requirements that may not accommodate practical barriers to treatment; stronger links between funded supports and the qualifying impairment; less flexibility for unscheduled reassessments; and possible reductions in some social and community participation budgets. Families of young children with developmental delay or autism should monitor the Thriving Kids rollout carefully.

For providers and plan managers, the main issues are: expanded registration obligations; stronger enforcement powers; shorter claim windows; and heavier record keeping requirements.

None of this is law yet. The Senate committee reports on 16 June 2026. Amendments are possible before the Bill passes.

If any of these proposed changes affect your situation or your planning, please reach out. This is exactly the kind of area where getting ahead of the detail early matters.