Major NDIS Reforms Passed: What it Means for Participants and Providers

A New Chapter for the NDIS: Legislation Becomes Law

Australia’s National Disability Insurance Scheme (NDIS) is set for its most significant overhaul since its inception, with new legislation now passed by Parliament. The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 officially cleared Parliament on August 19 and is currently awaiting Royal Assent – the final step for a Bill to formally become law.

These reforms aim to address the rapid growth in the scheme’s costs and ensure its long-term sustainability. The changes will touch on key areas including who can access the scheme, how support plans are developed, and how funding is managed. There will also be a stronger focus on provider oversight and measures to prevent fraud.

Who Can Access the Scheme: Changes Coming in 2028

A Focus on Permanent and Significant Disability

One of the most significant changes will affect new applicants seeking to join the NDIS. From January 1, 2028, stricter access requirements will be introduced. New participants will need to demonstrate a permanent and significant disability that substantially reduces their functional capacity and profoundly impacts their daily life.

The government states this change is designed to refocus the NDIS on its original intent: supporting people with the highest and most complex support needs. For participants already on the scheme, or those applying before 2028, current access arrangements will remain in place.

It’s important to understand that the precise framework for measuring “functional capacity” – essentially, how a person manages everyday tasks – is still being developed. More details on this assessment process are expected in the coming years, ahead of the 2028 implementation.

Evolving How Plans and Funding Work

More Consistent Plans and Clarified Funding Rules

The reforms also introduce a new planning framework aimed at making NDIS plans more consistent across the board. The goal is for funding to be even more closely aligned with each individual’s specific support needs, ensuring plans effectively meet personal goals.

Rules around how NDIS funding can be used will also be clarified, providing greater transparency and understanding for both participants and providers. For participants requiring 24-hour continuous support, additional safeguards have been built into the legislation to ensure their vital care continues uninterrupted.

Stronger Oversight for Providers and Integrity Measures

Addressing Fraud and Misuse of Funds

Beyond individual plans, the new legislation significantly strengthens the government’s oversight of NDIS providers. There’s a clear focus on enhancing fraud and integrity measures across the scheme.

These steps come as the NDIS has grown substantially, now supporting over 770,000 Australians. This is a considerable increase from its initial design, which projected around 410,000 participants. The scheme is also projected to cost approximately A$54 billion in 2026, highlighting the government’s drive for sustainable management.

These enhanced integrity measures aim to protect NDIS funds, ensuring they are directed appropriately to participant supports and services, thereby safeguarding the scheme for future generations.

What Happens Next: Phased Implementation

While the legislation has passed, most changes won’t happen overnight. Implementation will be staged, meaning some aspects may begin shortly after Royal Assent, while others – like the new access requirements – will be introduced gradually over the next few years.

For NDIS participants, families, carers, and providers, the key message is to stay informed. Official guidance and detailed information on how these changes will be rolled out are expected from the National Disability Insurance Agency (NDIA) in due course.

Your ongoing supports are vital, and understanding these reforms as they unfold will be crucial. We will continue to provide updates as more information becomes available.

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.