If you have a family member on the National Disability Insurance Scheme, or you help care for someone who does, the news out of Canberra this past fortnight has probably caught your attention.
On April 22, Health and NDIS Minister Mark Butler stood at the National Press Club and announced what many are calling the most significant shake-up to the NDIS since the scheme began. For the millions of Australians who rely on it, either directly or as carers and family supporters, understanding what’s changing, and when, is genuinely important.
Here’s a plain-English breakdown of what’s happening and what you can do to prepare.
What the Government Has Announced
The headline numbers are hard to ignore. The scheme currently supports around 760,000 Australians, and the government has signalled it wants to bring that figure down to around 600,000 by the end of the decade. That means an estimated 160,000 people could be removed from the scheme over the next four years, with tighter eligibility rules to be introduced from 2028.
For those who remain on the NDIS, budgets are also set to shrink. The government’s figures show the average plan spend will reduce from around $31,000 to around $26,000 over the next two years, according to The Conversation. That’s a $5,000 reduction per participant, and Minister Butler acknowledged the cuts will have ‘material impact’ on plans.
One of the biggest areas affected is social and community participation funding, which covers things like group activities, community outings, fitness programs and social skills development. This component of plans will be reduced by 30 per cent, with those changes beginning as early as July 1, 2026.
What This Means for Carers and Families
For older Australians who support a family member with disability, whether that’s a child, grandchild, sibling or spouse, these changes carry real weight.
Many families rely on NDIS-funded social and community activities not just for the Participant’s wellbeing, but as essential respite for carers too. When a support worker takes your loved one to a community program or social group, that’s also time for you to rest, attend appointments, or simply breathe.
A 30 per cent cut to that funding stream is not a small thing. It means some of those activities may no longer be covered, and families may need to make some difficult decisions about which supports to prioritise.
The good news is that these changes are being phased in over time, which gives families a window to plan ahead.
3 Steps to Take Right Now
1. Look at the plan before July If the person you support has significant funding allocated to social and community participation, that’s the area most immediately at risk. Take time now to review the current plan and understand where the money is going. The earlier you know, the better placed you’ll be at the next review.
2. Keep your documentation up to date Under the new approach, NDIS plans will place greater weight on evidence of functional need, meaning reports from GPs, occupational therapists and other allied health professionals will matter more than ever. Make sure any assessments are current and clearly reflect the day-to-day support needs of your family member.
3. Consider working with a registered plan manager When funding is tighter, how you manage it becomes even more important. A registered plan manager handles the financial side of an NDIS plan, tracks spending, processes provider invoices and helps make sure every dollar is used as effectively as possible. If your family member is self-managing their plan or you’re finding the administration overwhelming, connecting with an experienced NDIS plan manager could take real pressure off your plate.
What About the New Planning Framework?
You may have heard about a new NDIS planning framework that was supposed to roll out this year. The rollout of this new framework has now been pushed back to April 1, 2027, partly due to legislative uncertainty that still needs to be resolved. So while that change is still coming, there’s more time to prepare than originally expected.
A Word of Reassurance
It’s easy to feel alarmed when you read headlines about cuts and eligibility changes. But it’s worth keeping in mind that most existing participants won’t see immediate changes to their plans overnight. The bigger eligibility reforms are at least two years away, and the government has committed to a gradual transition with community consultation along the way.
That said, the funding reductions to social and community participation from July are real and coming soon. Being informed and organised is the best thing you can do right now.
If you or someone in your family is navigating the NDIS and feeling uncertain about what lies ahead, you are not alone. Reaching out to your plan manager, support coordinator or a trusted community organisation is always a sensible first step.
