Australian Government Proposes $37.8 Billion NDIS Funding Cut

The Australian government is moving to pass legislation that would overhaul the National Disability Insurance Scheme (NDIS), aiming to cut $37.8 billion over four years. The reforms seek to curb the program's growth—projected to rise from $52 billion to $117 billion annually within a decade—by tightening eligibility requirements and introducing independent functional assessments by 2028. These changes could remove 160,000 participants from the scheme and shift 241,000 people off by 2031.

The bill grants the NDIS Minister authority to reduce individual funding categories by up to 99%, including a planned 50% reduction for social and community participation. Participants with lower needs will transition to state-based foundational supports, such as the Thriving Kids program launching in October. While a Labor-led Senate inquiry recommended the changes and a deal with the coalition is expected, the legislation faces strong opposition from the Greens and independent senators.

Critics, including Senator Jordon Steele-John and Senator David Pocock, argue the reforms go too far, too fast, risking foreseeable harm to the care economy and disabled Australians. Advocacy groups warn that alternative supports are not yet operational and that the cuts will disproportionately impact women. Even Coalition health spokeswoman Anne Ruston criticized the bill, stating it fails to adequately address fraud and scheme integrity.