NDIS reform is needed, but it must not leave people behind

A few weeks ago, we tuned in to the Press Club address by Minister for Health, Ageing, Disability and the NDIS, the Hon. Mark Butler MP, where he outlined a significant shift in the future direction of the National Disability Insurance Scheme. 

He spoke about the need to rein in the costs of the NDIS, address widespread fraud and make sure the supports being delivered are of high quality. 

Minister Butler foreshadowed changes to the NDIS that would mean 160,000 fewer people would be on the scheme by the end of the decade. Later-released government figures increased this estimate to up to 241,000. Changes would also mean broad, sweeping cuts to social and community participation supports and mandatory registration of providers delivering high-risk supports. 

The Australian Government has now introduced the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 to Parliament. If implemented, it would enable the Minister to undertake these changes.  

The Bill has been referred to the Senate Community Affairs Legislation Committee for inquiry, and Mental Health Australia has made a submission outlining our concerns and recommendations. You can read our submission here.

There is no doubt that safeguarding the long-term sustainability of the NDIS is essential. However, we are concerned that the Bill’s strong focus on cost containment risks undermining critical supports that enable people with disability to live meaningful, connected lives. In particular, we have significant concerns that people with psychosocial disability, along with their families, carers and kin, stand to be disproportionately affected. 

The proposed changes to the way eligibility will be tested will make it harder for people with psychosocial disability to become NDIS participants, even though the evidence shows access rates have already fallen for this cohort in recent years. In particular, we’re concerned about the proposed requirement that people have undertaken all appropriate treatment related to their impairment to access the scheme. 

Proposed cuts to social and community participation supports are also deeply concerning, given these supports are often central to recovery, inclusion and wellbeing. They also make up a significant proportion of participants’ NDIS budgets. 

There are also other proposed changes which we think could inadvertently penalise participants for circumstances directly related to their disability – for example, suspending plans or revoking participant status if people cannot be contacted or raising participant debts if records are not kept. These measures risk compounding disadvantage, rather than addressing it. 

Our submission calls for an extension of the consultation period and puts forward practical recommendations to strengthen the Bill while protecting the rights and needs of people with psychosocial disability.  

We acknowledge that NDIS reform is necessary, but it must be thoughtful and inclusive. A sustainable NDIS cannot come at the expense of those it is designed to support.  

It is critical that the Committee is given the time and opportunity to fully consider the impacts of this legislation and engage meaningfully with the disability community to ensure we get this right – for today and for future generations.