NDIS Reform Changes 2026

The most significant NDIS reform changes since the Scheme began are now before federal Parliament. The Securing the NDIS for Future Generations Bill, introduced in May 2026, proposes tighter eligibility, broad new powers for the Health Minister, and roughly $36 billion in scheme savings by 2030. If the legislation passes in full, an estimated 160,000 fewer people would be on the NDIS by the end of the decade.

At 4titude, we know news like this lands hard. Families ring us worried, participants ask whether their next plan will look different, and our support workers want to know what to say. This article is a plain-English summary of what is actually being proposed, what is still uncertain, and what families can do right now to prepare.

Why these changes are happening

The Government argues that the NDIS has outgrown its original design. According to Health and NDIS Minister Mark Butler, participant numbers nearly doubled between 2020 and 2025, and projected scheme costs were tracking toward $64 billion by 2029. The stated aim of the new bill is to slow that growth and refocus the Scheme on people with significant and ongoing disability. The Minister's full statement is on the Department of Health website.

Disability advocates, including the national peak body People with Disability Australia, take a different view. They argue the bill shifts the Scheme's philosophy from rights, choice and control toward rationing supports. Their position paper is worth reading. Both perspectives deserve to be heard. While the politics plays out, families need practical information.

A new “functional capacity” eligibility test

Until now, NDIS access has been weighted toward medical diagnosis. The bill proposes a new test based on functional capacity. That means what a person can do without help from others, without assistive technology, and without home modifications.

Eligibility would be assessed in isolation rather than in the real world. For someone whose independence relies on a wheelchair, a communication device, or a trained support worker, that is a fundamentally different conversation. The kind of evidence families bring to plan reviews matters more than ever.

A tighter definition of “permanent”

The current rules already require an impairment to be permanent. The bill tightens what permanence means. Under the new wording, an impairment will only be considered permanent if further treatment is unlikely to “materially improve, reverse, or alleviate” its impact. “Alleviate” is a low bar. Even a small improvement from a new therapy could be used to argue an impairment is not permanent under the proposed rules.

You must have tried all reasonable treatments

The bill also assumes treatment is accessible. An applicant will need to show they have tried all treatments commonly available in Australia. Importantly, the test doesn't account for whether the person can afford the treatment, or whether it exists where they live. For families in regional NSW, including parts of our Lake Macquarie and South Coast catchments, that's a real concern. Anyone preparing for a plan review should keep clear records of what treatments have already been tried and why other options weren't accessible.

Funding may not cover overlapping conditions

Many people we work with live with more than one diagnosis. For example, a young adult may have both ADHD and the long-term effects of an acquired brain injury. The bill proposes that funded supports will only address the impairment that independently meets the new eligibility test. The combined impact of multiple conditions on someone's daily life would no longer be considered.

In practice, that could mean less holistic planning. Getting documentation right for the impairment most likely to meet the new threshold becomes critical.

Ministerial powers and the role of automation

Two structural changes deserve close attention. First, the bill gives the Health Minister the power to set percentage cuts across entire categories of support, such as capacity-building supports, without needing further legislation. Second, the bill expands the legal basis for using computer programs in eligibility and funding decisions. Concerns about automation in welfare systems are not theoretical, and The Conversation has covered the wider implications well.

There is no suggestion this is Robodebt 2.0. There are reasonable questions about how algorithms will handle the nuanced, person-by-person judgements the NDIS has always required.

Tighter reassessments and a new 90-day claims rule

Two more practical changes will hit sooner. Plan reassessments are being tightened, with funding increases limited to participants who can show “significant and ongoing” changes in their needs. Providers will only be able to claim for supports within 90 days of delivery, down from the previous two-year window. This is mainly a provider-side rule, but it can flow through to participants whose plans run close to deadlines. At 4titude, we've already adjusted our internal processes so participants don't lose entitlements through admin delays.

What you can do now

First, take a breath. The bill is not yet law. It has been referred to a Senate committee due to report by mid-June 2026, and the existing rules still apply to your current plan.

Second, prepare. If your plan review is coming up in the next twelve months, gather any clinical letters, therapy reports, support-worker statements and photos that demonstrate what your functional capacity actually looks like without help. The shift toward “in isolation” assessment makes that evidence more important than it used to be.

Third, have your say. The Senate committee accepts public submissions, and the bill's progress is tracked on the Australian Parliament House website. Families, participants and providers each bring something the committee won't get from inside Government. In our experience, submissions don't need to be long. They need to be specific.

Finally, lean on the people who already know you. Your support coordinator, plan manager and provider are across this. At 4titude, we are tracking the bill closely, briefing our team weekly, and running short information sessions at each of our three NSW hubs. If you'd like a plain-English chat about your situation (not legal advice, just a conversation), get in touch and we'll book in a time.

The NDIS was created to support a more inclusive Australia. The challenge now is making sure whatever comes next holds onto the people it was meant for. This is a moment for clear information, honest conversation and active participation. We'll keep updating this article as the legislation moves through Parliament.