Understanding the Upcoming NDIS Changes

Over the next few years, the National Disability Insurance Scheme (NDIS) will continue to undergo significant reform as part of a national effort to strengthen the Scheme for the future while improving participant experience, consistency and safeguards.

These changes are designed to create a more transparent, sustainable and person-centred system that better supports people with disability to achieve their goals and participate fully in work, home and community life.

While many of the reforms are still being implemented, participants, families and providers are beginning to see how the future direction of the NDIS is taking shape.

A More Consistent Planning Experience

One of the major reforms is the introduction of a redesigned planning framework intended to create greater consistency across the country.
The updated approach is expected to place stronger emphasis on understanding how disability impacts a participant’s everyday life, independence, goals and community participation. Planning conversations are intended to become more structured and participant-focused, helping to reduce variations between plans and improve transparency around funding decisions.

The overall aim is to make the planning process easier to understand and less stressful for participants and families.

Greater Focus on Functional Support Needs

Future planning discussions are also expected to focus more heavily on a participant’s functional support needs — meaning how disability affects daily living activities and what supports are required to live safely, independently and meaningfully.

As part of this process, participants may complete support needs assessments with trained professionals who will work alongside them to better understand their day-to-day experiences, strengths, goals and support requirements.

This approach is intended to create fairer and more consistent outcomes while reducing the need for participants to repeatedly gather multiple reports and assessments.

Simpler Plans and Clearer Funding

The NDIS is also working towards making participant plans easier to navigate and manage.

Future plans may include:
– simpler funding structures
– clearer categories of support
– easier-to-understand budgets
– more defined funding periods.

Some participants may notice changes to how funding is released throughout the duration of their plan, with a stronger focus on helping participants manage supports consistently over time.

In addition, clearer guidance is being introduced around what supports can and cannot be funded under the Scheme. This is intended to improve consistency and ensure funding decisions align closely with participant goals and reasonable and necessary supports.

Stronger Safeguards Across the Disability Sector

Alongside planning reforms, the NDIS Quality and Safeguards Commission is introducing significant changes aimed at strengthening participant protections and improving service quality across the disability sector.

A major reform will take effect from 1 July 2026, when registration with the NDIS Commission becomes mandatory for all Supported Independent Living (SIL) providers.

This change means providers delivering SIL supports will no longer be able to operate outside the formal registration system. The reforms are intended to improve oversight, accountability and participant safety, particularly within shared living environments.

The updated framework will include:
– strengthened provider suitability requirements
– tighter compliance and auditing processes
– enhanced worker screening obligations
– increased regulatory oversight for higher risk supports.

The NDIS Commission is also developing specialised SIL Practice Standards designed specifically for shared living and home environments. These standards are being developed in consultation with the disability sector and advocacy organisations to ensure they reflect the lived experience and rights of people with disability.

Importantly, the new standards are expected to place stronger emphasis on:
– participant choice and human rights
– quality of daily life within the home
– participant-centred supports
– dignity, independence and inclusion
– the overall experience of living in shared accommodation — not just compliance and safety measures.

Another important reform is the increasing separation between Supported Independent Living (support provision) and Specialist Disability Accommodation (housing provision). The intention is to reduce potential conflicts of interest and strengthen participant choice and independence when selecting housing and support arrangements.

Early Supports and Community-Based Services

The Government is also placing greater focus on early intervention and community-based supports, particularly for children and families.
These initiatives aim to ensure people can access appropriate support earlier, even if they do not require long-term NDIS funding, while helping maintain the sustainability of the Scheme into the future.

Reduction in Community Participation Funding

One of the most significant and immediate changes to the NDIS is a reduction in funding for social, civic and community participation supports. NDIS Minister Mark Butler announced in April 2026 that the social and community participation component of participant budgets will likely be reduced. The government has acknowledged this will have a material impact on participants.

These budget adjustments are being driven by concern over the rapid growth in spending in this area. Community participation spending has tripled over the past five years, rising from around $4 billion to $12 billion annually. The government has described this level of growth as unsustainable and has introduced the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill to parliament in May 2026 to enable these and other changes.

Community participation funding covers the supports that help participants connect with their communities, attend work or study, maintain friendships and take part in social and recreational activities. The planned reductions cover both:
– Core Supports for Assistance with Social and Community Participation (ongoing funded hours for day-to-day community activities)
– Capacity Building for Increased Social and Community Participation (structured programs to build independence skills)

It is important to note that these reductions will not affect core supports for personal care, daily living assistance, disability accommodation or transport. The government has stated that essential care supports are protected under the reform package.

As a partial offset to individual plan reductions, the government has established a $200 million Inclusive Communities Fund. This fund is intended to support community organisations to deliver group-based participation activities for NDIS participants. However, advocates have raised concern that group-based alternatives do not replace the individually-directed supports that help people connect with their communities in personalised and meaningful ways. Budget adjustments to community participation supports are expected to be progressively applied from October 2026 as plans are renewed, ahead of the broader planning framework changes in April 2027.

What This Means for Participants and Families

The current wave of reforms represents the most significant reshaping of the NDIS since the Scheme was introduced. While the government has emphasised that essential care and daily living supports are protected, the changes will be felt differently across the participant community depending on an individual’s support profile and goals.

For participants who rely heavily on funded community participation supports, the 30 per cent reduction will likely mean fewer funded hours for social activities, group programs and supported outings. This may affect the ability of some participants to stay connected with their local communities, maintain relationships and access employment or study opportunities. Disability advocates have raised concerns that reducing individual participation funding before alternative community supports are fully operational creates a gap that is likely to be absorbed by families and carers.

For families and carers, the practical impacts of the reforms may include:
– Reduced funded hours for social outings, group activities and community programs, particularly for participants whose plans are reviewed from October 2026 onwards
– Greater reliance on informal supports, including family members and carers, to fill gaps left by reduced funded participation hours
– A shift towards group-based community activities rather than individually tailored supports, which may not suit all participants equally
– Tighter restrictions on unscheduled plan reassessments, meaning participants may have reduced flexibility to respond to changing circumstances mid-plan
– Changes to who can deliver plan management, with fewer organisations approved to operate in this space
– From 2028, potential eligibility changes based on functional capacity rather than diagnosis may affect some participants’ access to the Scheme, particularly those with mild to moderate support needs

Despite these challenges, participants will continue to have the right to work towards personal goals, have input into planning decisions, request reviews where required and exercise choice and control over their supports. Families and carers are also expected to play an important role in future planning discussions, particularly around informal supports and daily living arrangements.

As the system evolves, maintaining updated reports, preparing for reviews early and staying informed about changes will become increasingly important. Participants and families are encouraged to engage with their support coordinators now to understand how upcoming plan renewals may be affected by the funding adjustments.

Preparing for the Future

Although many reforms are still being introduced gradually, there are practical steps participants and families can take now to feel more prepared and confident.

These include:
– reviewing current plans and supports
– identifying any gaps or changing support needs
– gathering updated medical and therapy reports
– setting clear and meaningful goals
– documenting how supports assist with everyday life
– speaking regularly with support coordinators and providers
– staying informed through official NDIS updates and trusted disability organisations.

How Orana Can Support You

Orana understands that changes to the NDIS can sometimes feel uncertain or overwhelming for participants, families and carers.
Our team continues to monitor developments closely and remains committed to supporting people to navigate these changes with confidence.

As the disability sector evolves, Orana will continue focusing on what matters most — supporting people with disability to find their place at work, at home and in the community.