The Australian Government has announced major reforms to the National Disability Insurance Scheme (NDIS), aiming to significantly reduce its rising costs over the next four years.
Health Minister Mark Butler outlined the changes in a National Press Club address, stating that the program has become vulnerable to misuse and must be restructured to ensure its long-term sustainability.
He said the reforms are designed to prevent fraud and reduce inefficiencies, describing the measures as “hard but unavoidable” decisions ahead of the federal budget.
Butler noted that the NDIS, originally intended to support around 410,000 people, now serves about 760,000 participants, with projections showing continued rapid growth if no action is taken.
Under the proposed changes, the number of participants is expected to be reduced to around 600,000 by the end of the decade, instead of rising beyond 900,000.
The government also plans to reduce total NDIS spending from a projected $70 billion to about $55 billion by 2030, along with lowering average support per participant.
Stricter eligibility rules will be introduced, including standardised assessments of functional capacity, replacing existing access lists that were originally used during the scheme’s rollout.
Authorities will also tighten oversight of providers and reduce reliance on third-party administrators, aiming to improve service quality and reduce cost-cutting practices.
In addition, the government will introduce cuts to subsidised private health insurance for Australians over 65, aligning rebates with other age groups and redirecting savings into aged care services.
Butler said the reforms are intended to ensure fairness between generations and to guarantee that taxpayer funding is used more efficiently in the future.
