Australians with a disability would need to exhaust "all appropriate" treatment options before qualifying for the National Disability Insurance Scheme (NDIS), under strict new entry criteria aimed at curbing the program's soaring costs. The proposed test is set to begin in 2028, and existing participants who do not meet the requirement could be removed from the scheme.
Sweeping Overhaul to Be Introduced
The change is part of sweeping legislation to overhaul the $50-billion-a-year NDIS, which is expected to be introduced to parliament on Thursday. Health Minister Mark Butler last month outlined major changes to contain costs, including new eligibility rules, standardised assessments, and mandatory registration for more provider categories. The measures, to be rolled out over the next two years, are forecast to save the federal budget approximately $36.2 billion through to 2030 and reduce participant numbers to 600,000, down from a projected 900,000 by the end of the decade. Currently, about 760,000 participants are on the scheme.
New Definition of Permanence
Briefing documents seen by Guardian Australia reveal the bill will clarify the definition of "permanence" for disability, acting as a gateway test. Under the definition, entry to the NDIS would only be granted if "all appropriate treatment that can remedy or alleviate an impairment has been undertaken; no other treatment is likely to materially improve the impact of the impairment, and the impairment is likely to be lifelong." This change follows recommendations from the 2023 review of the NDIS.
A government spokesperson confirmed the definition, stating: "The NDIS was designed for people with permanent and significant disability. If a person can access treatment that will treat or alleviate the impact of an impairment, the NDIS is not the appropriate service system."
Political Reactions
Greens disability spokesperson Jordon Steele-John called the proposal "extraordinarily alarming," warning it would force people to pursue ineffective or inappropriate treatments at great cost. He confirmed the Greens would oppose the changes in parliament, meaning Labor will need support from the opposition. Coalition leader Angus Taylor has signalled willingness to work with the government, but shadow NDIS minister Melissa McIntosh supported an inquiry into the legislation, citing a lack of consultation with affected Australians.
Additional Changes and Timeline
Beyond eligibility, other changes include: participants and providers must retain records by the end of May; supported independent living providers must register with the NDIS Quality and Safety Commission from June; the Thriving Kids program for children under nine with autism and developmental delays starts in October; and reductions to social and community participation budgets begin in October. Major changes to how the NDIS operates are scheduled for 2027, including new criteria for determining supports and no rollover of unused funds. The government expects the changes to recoup $36.2 billion over four years, with payments plateauing at $53-$54 billion annually until 2030. The National Disability Insurance Agency will also reduce its headcount by nearly 700 roles in the upcoming financial year.
