NDIS Reforms Explained: Why These Changes Are Being Introduced

The Australian Government has announced a significant package of disability and health reforms that will introduce major changes to the National Disability Insurance Scheme (NDIS). Here's an overview of what has been announced so far.

In January 2026, the government confirmed a broad set of reforms that will reshape how the NDIS operates, who is eligible to receive support, and the range of services available alongside the scheme. These changes are expected to be introduced gradually over the coming years.

The NDIS reforms will be introduced progressively between 2026 and 2028, with some measures continuing to roll out beyond this period.

We understand that these upcoming changes may leave many NDIS participants, families, and carers feeling uncertain about how their access to NDIS supports could be affected. As many aspects of the reforms are still being developed, it's natural to have questions.

In this blog, we'll explain what is currently known about the NDIS reforms, why the Australian Government is introducing these changes, and what participants can expect over the coming years.

Overall, the government says the NDIS reforms are intended to:

• Ensure people with permanent and significant disabilities continue to receive support through the NDIS.
• Strengthen non-NDIS supports for people with lower support needs.
• Manage the long-term growth of the NDIS to help keep the scheme financially sustainable.
• Increase access to mainstream services and community-based supports for everyday assistance.

These NDIS reforms represent a significant long-term transformation of Australia's disability support system rather than a minor update. The changes will be introduced gradually between 2026 and 2028, with additional reforms expected beyond that timeframe.

How Three Systems Are Changing Together

Instead of updating the NDIS in isolation, the Australian Government is introducing a broader package of reforms that connects three key areas of the disability and health system. These changes are designed to work together to improve how support is delivered.

The three connected reforms include:

• NDIS access and planning
• Foundational Supports provided outside the NDIS
• Additional funding for public hospitals and early childhood services

The goal is to ensure that people who do not require long-term NDIS support can still access the right assistance through mainstream health, community, and early intervention services when they need it.

What Changes Are Coming to the NDIS?

New Framework Planning (From July 2026)

Starting in mid-2026, the NDIS will gradually introduce a new planning framework that changes the way participant plans are developed and managed. The transition to this updated approach will take place over several years, with full implementation expected by 2030.

According to the Australian Government, the new framework is intended to create a more consistent planning process while helping manage the long-term sustainability of the NDIS. One of its objectives is to maintain annual NDIS growth at approximately 5–6%.

The new planning framework will follow four key stages:

• Preparing for a support needs assessment
• Completing the support needs assessment
• Developing the participant's plan and budget
• Using and managing the approved NDIS plan

These four stages are designed to create a clearer, more consistent, and participant-focused planning experience across the NDIS.

The new planning framework will be introduced in phases, beginning in mid-2026. During the initial rollout, a selected group of NDIS participants aged 16 years and over will be among the first to move to the updated planning process.

After the release of the NDIS New Framework Planning consultation papers, People with Disability Australia (PWDA) gathered feedback through a survey involving its members and the wider disability community. The organisation's submission to the consultation, which closed on 6 March, reflects the experiences and views shared by participants and is guided by its human rights framework.

How NDIS Planning Is Changing

In addition to updates to NDIS access and the introduction of Foundational Supports outside the Scheme, the Australian Government is rolling out a new framework planning process that changes how NDIS plans are developed.

These reforms focus on improving how planning decisions are made, rather than simply changing who can access the NDIS.

Under the new planning framework:

• NDIS plans will rely more on a standardised support needs assessment, reducing the need for multiple supporting reports.
• Planning decisions will place greater emphasis on a participant's everyday support needs, individual circumstances, and what is considered reasonable and necessary.
• NDIS budgets will be developed using clearer, more consistent, and transparent funding guidelines to improve fairness across the Scheme.

According to the government, these changes are intended to make the NDIS planning process more consistent, equitable, and easier for participants to understand, while ensuring funding decisions are made using a standard approach across the Scheme.

How NDIS Plan Budgets Will Work Under the New Framework

Under the proposed NDIS reforms, participant NDIS budgets will generally be divided into two funding categories, each designed for different types of supports.

• Flexible Funding – This funding can be used across a broad range of everyday disability supports, giving participants greater flexibility to choose the services that best meet their individual needs.
• Stated Supports Funding – This funding is allocated for specific supports listed in a participant's NDIS plan. It is typically intended for higher-cost, specialised, or essential supports, such as home modifications, assistive technology, or complex equipment.

Depending on the type of funding provided, certain conditions or spending limits may apply. These measures are intended to safeguard participants while ensuring that essential supports remain available throughout the duration of the NDIS plan.

How the NDIS Reforms Will Affect Children Aged 0–8 (from January 2028)

One of the most significant NDIS reforms will affect children aged 0–8 who have developmental delay and/or autism with low to moderate support needs.

From 1 January 2028, the following changes are expected to apply:

• Children in this group will no longer automatically qualify for NDIS Early Intervention.
• Instead, they will receive support through new early childhood services delivered outside the NDIS.

What This Means for Families

There are also important protections under the proposed changes:

• Children who are already NDIS participants before 1 January 2028 will continue to be assessed using the eligibility rules that were in place at the end of 2027.
• Children with permanent and significant disabilities or those with higher support needs will continue to be eligible for NDIS funding and supports.

Understanding Foundational Supports

Foundational Supports are a new category of government-funded services that will operate outside the NDIS. These supports are designed to provide assistance for people who may not require long-term NDIS funding but still need access to disability-related services.

To support this initiative, the Australian Government and state and territory governments have committed $10 billion over five years, with the funding shared equally between both levels of government.

Foundational Supports are expected to include:

• Early intervention services
• Community-based support programs
• Practical everyday assistance for people who do not meet NDIS eligibility requirements

State and territory governments will play a key role in delivering these services. While an official rollout schedule is yet to be confirmed, the government has indicated that full implementation is expected by January 2028.

What Is the Thriving Kids Program?

Thriving Kids is a new government initiative designed to support children aged 0–8 with developmental delay and/or autism who have low to moderate support needs.

Key Highlights

• A $4 billion investment over five years, jointly funded by the Australian Government and state and territory governments.
• Services will be delivered through a combination of Commonwealth and state-funded programs.
• The first Thriving Kids services are expected to begin by 1 October 2026.
• A nationwide rollout is planned by 1 January 2028, in line with the upcoming NDIS access reforms.

The Thriving Kids program is intended to provide an alternative pathway for eligible children by delivering early childhood supports outside the NDIS, ensuring families continue to receive appropriate services without losing access to essential assistance.

Why Is the Government Introducing These NDIS Reforms?

According to the Australian Government, the NDIS has expanded more rapidly than originally anticipated. The reforms are intended to ensure the Scheme remains focused on supporting people with the highest and most complex disability support needs, while maintaining its long-term sustainability.

To reduce pressure on the NDIS, the government plans to strengthen other areas of the support system by investing in:

• Early childhood support services
• Community and mainstream support programs
• Public hospitals and the broader healthcare system

The success of these reforms will largely depend on several key factors, including:

• The quality, availability, and accessibility of Foundational Supports
• How effectively the Thriving Kids program is developed, funded, and delivered
• How smoothly participants, children, and families transition to the new support arrangements

What Happens Next?

Throughout 2026 and 2027, the Australian Government has indicated that several important steps will take place as part of the reform process, including:

• Continued consultation with the disability community
• Introduction of new legislation to update NDIS access rules
• A phased rollout of new disability support services

People with Disability Australia (PWDA) has committed to keeping the disability community informed as the reforms progress. The organisation will continue advocating for meaningful co-design, ensuring that people with disability are actively involved in decision-making and that governments continue to protect access to the essential supports participants rely on.

Consultation on Therapy Supports Is Underway

The Australian Government is currently consulting with allied health professionals to determine how therapy supports; including occupational therapy, speech pathology, and physiotherapy; will be defined under the new NDIS planning framework.

These proposed definitions will play an important role in deciding how therapy services are included within participants' NDIS plans and funding budgets under the updated planning process.

Further public consultation on therapy supports is expected to take place in March 2026, providing stakeholders with additional opportunities to share their feedback.