Protecting what works – why NDIS reform must not leave people behind

You may have seen media commentary over recent weeks questioning the sustainability of the National Disability Insurance Scheme (NDIS). With the Federal Budget approaching, there’s a growing narrative that spending cuts are on the horizon.

We understand the reality. Investment through the NDIS has grown significantly – far higher than originally forecast – and governments have a responsibility to manage public funds carefully. However, as these conversations unfold, it’s critical that we do not lose sight of why the NDIS exists in the first place.

The NDIS was established to support people with disability to live full lives, participate in their communities and feel hopeful about their future. There are currently around 66,000 NDIS participants with significant mental health challenges, also described as psychosocial disability.

A report on psychosocial disability and the NDIS released this week by disability advocacy organisation Every Australian Counts, based on its consultation with more than 400 NDIS participants, carers and service providers, highlights just how much is at stake. 

Participants with psychosocial disability consistently described the NDIS as foundational to their stability, participation and safety. Many referred to it as the “scaffolding that holds everything else in place”, providing consistent access to support, therapy, community connection and practical assistance for daily life. 

As reform discussions continue, decision makers need to ensure that any changes to the NDIS don't undo the valuable progress made. People who are living with significant mental health challenges already experience disadvantage across a range of areas, and reforms must not place them at even greater risk of missing out on the support they need.

Any suggestion that people with psychosocial disability are a fast-growing part of the NDIS doesn’t line up with the evidence. According to the Access Denied Report by the Australian Psychosocial Alliance, psychosocial disability access to the NDIS has reduced dramatically over recent years, and this reduction is far larger than for any other disability type. This is not because people need less support, but because barriers to access have increased.

Potential changes to the NDIS need to be considered within the broader context of the overall disability, mental health and community support systems. There is currently a shortage of psychosocial supports outside the scheme – around half a million people are already missing out on the help they need, which points to a significant and ongoing gap in our mental health system. This issue was highlighted in Mental Health Australia’s recent Pre-Budget submission. 

In short, we must do both: strengthen supports beyond the NDIS, while also protecting access to the NDIS for people who rely on it.

Community supports outside the NDIS – such as safe housing, help with employment, and support with everyday living – are essential, and should absolutely be strengthened. But for people with more significant mental health challenges, those supports alone may not be enough. They don’t replace the personalised, ongoing support that the NDIS provides.

For these people, the NDIS can be life changing. It helps them stay connected, manage daily life, and access support – especially when things get tough. Without that support, the risk of things unravelling increases. 

This is not a rejection of reform. We know that change is needed – but this must be done in a way that is fair, well considered and informed by lived experience. 

The NDIS was built on the idea of choice and control, and the chance to be able to thrive, not just survive. That promise still matters.

Carolyn Nikoloski, CEO, Mental Health Australia