Australian Senate Passes NDIS Reforms to Save $37.8 Billion

The Australian Senate passed the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 on August 19, 2026, with a 28-12 vote. The legislation aims to save $37.8 billion by 2030 through social funding cuts, expanded ministerial powers, and measures to reduce fraud.

To secure the bill's passage, the Labor government struck a deal with the Coalition to scrap a widow tax loophole that would have removed negative gearing entitlements for widows and divorcees. Just before the vote, the government introduced 63 amendments, including the right for severely disabled Australians requiring constant care to appeal funding decisions. However, funding for community and social participation remains ineligible for appeal.

NDIS Minister Jenny McAllister announced the bill introduces tougher penalties for providers involved in kickbacks and deception. In contrast, disability advocates and opposition lawmakers condemned the move. Greens Senator Jordon Steele-John argued that the deal rendered disabled people a political football, while People with Disability Australia warned that the loss of 94 million hours of paid care would cause foreseeable harm. Acting CEO Megan Spindler-Smith stated that the community is grieving and frightened, asserting that alternative state supports promised by the government do not yet exist.