Crucial Questions Raised as NDIS Overhauls Participant Budget System

The method guiding how NDIS participant budgets will be decided in a redesigned scheme is currently under independent review. This comes as the government’s own reform advisors express concerns about whether these new budgets will truly meet the needs of participants.

This news is important for everyone in the NDIS community. The way your plan funding is worked out could change, and it’s vital to understand the conversations happening behind the scenes.

Deep Dive into the New NDIS Budget Method

Officials from the Department of Health, Disability and Ageing (DoHDA) recently briefed the NDIS Reform Advisory Committee about the proposed “New Framework Planning” rules. This new framework aims to streamline how NDIS plans are developed and funded.

However, the committee’s summary of their August meeting reveals significant questions. Members raised concerns about the new system’s “funding levels, budget assumptions, and how participants would understand the relationship between assessment outcomes and budget decisions.”

Key Concerns from Advisors

The committee highlighted several critical areas that need clarity and attention:

Transparency: How clear will the budget decisions be for participants?
Informal Supports: How will the new method consider the vital role of family and friends providing unpaid care?
Specialist Disability Supports: Will funding be adequate for complex or unique support needs?
Benchmarking and Pricing: How will the costs of supports be determined and factored into budgets?
Meeting Participant Needs: This was a central concern, with members emphasizing that “flexibility is meaningful only if funding levels are sufficient to meet participant needs.”

DoHDA officials acknowledged these points, stating that more work is underway. This includes an independent review of the budget methodology itself and continued testing to see how assessment outcomes translate into real participant budgets.

Public consultation on these proposed “New Framework Planning” rules, which cover support needs assessments, the budget method, NDIS supports, and plan variations, is expected to begin soon.

Testing the New System: What It Means for You

The National Disability Insurance Agency (NDIA), which runs the NDIS, is actively testing “New Framework Planning” rules. More than 10,000 assessments are planned in this phase, with further testing to continue before any widespread changes are implemented.

This testing focuses on three main areas: checking if the new Support Needs Assessment and budget model are fair and reliable, understanding the experience for participants and the NDIS workforce, and ensuring the systems and processes are ready for implementation.

The NDIA is using various methods, including simulated assessments, surveys with participants, focus groups, and workforce testing, to gather feedback.

Community Concerns About Testing

Despite these efforts, the Reform Advisory Committee reported community concerns about participants’ understanding of and confidence in the testing process. It’s natural to feel uncertain when big changes are being considered for such an important scheme.

The committee stressed the importance of clear communication from the NDIA. They want everyone to understand that this testing is an iterative process – meaning it’s still being developed and refined – and that it will not affect current NDIS plans or future funding decisions in the short term. Your current plan remains unchanged.

Advisors also urged that testing reflect the diverse experiences of NDIS participants. This specifically includes autistic people, individuals living in rural and remote communities, and those with complex support needs, to ensure the new framework works for everyone.

Broader Anxieties and “Thriving Kids” Uncertainty

Beyond the budget methodology, the committee also reported broader anxiety across the disability community about the government’s wider NDIS reforms. This includes uncertainty around “Thriving Kids,” which refers to changes in early childhood intervention supports and how they connect with the NDIS.

Other identified concerns include potential impacts on the NDIS workforce, worries about the continuity of services, readiness for implementation, and the ongoing need for clearer communication as these significant reforms progress.

Future work for the Reform Advisory Committee will delve deeper into “New Framework Planning,” reforms to NDIS access and eligibility rules, and how the NDIS will interact with “foundational supports.” These foundational supports are general community services available to all Australians, not just NDIS participants, which aim to provide early support and reduce reliance on the NDIS where appropriate.

Public Consultation Opens on NDIS Access Rules

In a related development, the government has launched public consultation on proposed changes to NDIS access rules. This is your chance to have a say on crucial aspects such as how a person’s functional capacity is assessed, what evidence is used to support access decisions, and how future access processes could be designed.

Feedback from people with disability, families, carers, advocates, disability service providers, and health professionals will directly inform the work of the Technical Advisory Group for NDIS functional capacity (TAG). This group provides independent, evidence-based advice to governments.

Minister for Disability and NDIS Mark Butler stated, “This consultation is an opportunity for people with disability and the broader community to help shape a more transparent and consistent NDIS access process.”

Minister for the NDIS Senator Jenny McAllister echoed this sentiment, encouraging wide participation. “I want to hear from people with disability on how they want the proposed changes to look and operate. Their input is invaluable,” she said, specifically inviting input from diverse backgrounds and communities.

This consultation is open from August 31, 2026, to October 2, 2026. You can provide your feedback and find more information at consultations.health.gov.au.

What This Means For You: Next Steps

The NDIS is undergoing significant changes, and it’s understandable if you feel a mix of hope and concern. Here’s how you can stay informed and engaged:

For NDIS Participants, Families, and Carers: Remember that current testing of the new budget framework does not affect your existing NDIS plan or current funding decisions. However, these discussions will shape the future of the scheme. Consider participating in the public consultation on access changes to ensure your voice is heard directly by decision-makers.
For Disability Service Providers and Businesses: Stay informed about the proposed changes to the budget method and access rules. Understanding these shifts will be crucial for planning and ensuring continuity of services for participants. Your insights are also valuable for the consultation process.

The ongoing commitment to independent review and public consultation is a positive sign that feedback is being taken seriously. Engaging with these opportunities is one of the most powerful ways to influence the future direction of the NDIS.

Hazel Chen

I work in marketing and communications for NDISLocal, helping connect NDIS participants, families, and providers with clear, useful information about the sector. I'm passionate about making the NDIS easier to understand and navigate, and about giving disability service providers a platform to reach the people who need them. If you'd like to know more about anything covered in this post, or you're a provider interested in being featured, feel free to get in touch.