The new NDIS legislation halts automatic top-ups, sets up flexible budgets, and excludes non-NDIA supports.
The Senate has passed significant reforms to the National Disability Insurance Scheme (NDIS) after a week of debate, marking a notable win for the Albanese government.
The bill is designed to curb NDIS spending, with projections indicating the scheme could cost taxpayers $50 billion by 2025-2026 without urgent action.
Key measures in the legislation include an 8 percent cap on growth and stricter eligibility requirements for services, aiming to save $14.4 billion over four years. The reforms also involve a larger role for states and territories in supporting NDIS participants.
Senator the Hon Jenny McAllister, speaking on behalf of the government, highlighted that the legislation lays the groundwork for implementing priority reforms recommended by the independent NDIS review.
“This legislation achieves several key objectives,” McAllister explained.
“It halts the automatic top-up of participant plans that are exhausted early without any change in circumstances, it establishes the foundation for implementing the review’s recommendation of a more flexible whole-of-person budget for all participants, and it allows for the exclusion of supports that do not align with the original intent of the NDIA and should be funded by other service systems.”
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The bill’s passage was not without challenge within the Senate.
The Coalition expressing ongoing concerns, with Liberal Senator Hollie Hughes acknowledging that while she was not “filled with confidence” in the legislation, there were aspects that the Coalition could not oppose.
She stressed the importance of the government’s commitment to co-designing services, urging them to engage those who “genuinely need this scheme.”
“We will support this,” Senator Hughes stated, “but please, get it right. Please do more. Work constructively with us to ensure that people aren’t left behind.”
Concerns in Disability Community
While the Albanese government views the overhaul as a crucial step in getting the NDIS “back on track,” some in the disability community are concerned that the reforms may introduce uncertainty for those relying on the scheme.
The bill faced scrutiny in the Senate last week, with questions raised about the government’s plans to fund “needs assessments for NDIS participants, which would help determine their funding needs.”
In response, a spokesperson for NDIS Minister Bill Shorten clarified that the government does not intend to make users pay for these assessments.
“The minister’s categorical view is that participants should not pay for their support needs assessment,” they said.
The government has also pledged to conduct extensive consultations following the bill’s passage through Parliament.
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