NDIS Reform Bill Passes Senate with Substantial Amendments 2026

The NDIS reform bill has passed the Senate with substantial amendments, reshaping the future of Australia's disability insurance scheme. This landmark legislation aims to control the growth of the $50 billion program by tightening eligibility and reducing budgets for many participants.

Understanding the NDIS Reform Bill

The Albanese government's national disability insurance scheme bill is designed to dramatically curb the growth of the scheme by first reducing budgets and then the number of people who can access it from 2028. More than 240,000 participants are expected to be shifted off the NDIS in the four years after new eligibility rules are introduced.

After intense negotiations, the bill passed the Senate on Tuesday night with the Coalition's support. A total of 63 government amendments across both houses were introduced as part of backroom deals. NDIS ministers Mark Butler and Jenny McAllister defended the changes, stating, "This is responsible reform that protects the integrity of the scheme while keeping people with disability at the centre of the NDIS."

Key Amendments and Their Impact

Among the amendments is a tweak to allow vulnerable participants whose budget is impacted by a new ministerial power – which allows the minister to slash funding from certain categories across all participants by up to 99% – to apply for more funding through a plan variation. This new pathway is intended for participants who require continuous care over a 24-hour period.

What the Changes Mean for Participants

For high-support-needs participants, the plan variation pathway offers a safeguard. They can apply for a plan variation within 90 days of a support determination applying to them. However, critics, including the Greens and Senator David Pocock, argue the amendments still leave many vulnerable people exposed to drastic funding cuts.

The disability community has expressed heavy criticism, fearing that the new eligibility rules will exclude many who genuinely need support. The government insists the reforms are necessary to ensure the scheme's long-term sustainability.

Comparison: Before and After the NDIS Reform

Key Takeaways

• The NDIS reform bill passed the Senate with substantial amendments.
• New ministerial power allows funding cuts of up to 99% in certain categories.
• A plan variation pathway is established for 24-hour care participants.
• Over 240,000 participants may lose access by 2028.
• The bill returns to the lower house for a final vote.

FAQ

The NDIS reform bill now returns to the lower house for a final vote before becoming law. As the scheme evolves, participants and providers must stay informed about these significant changes to disability support in Australia.