The abilityNEWS Daily
The Big Story
The cost curve bends — but not far enough
The latest NDIS Quarterly Report still shows spending still growing faster than government will tolerate. This explains the politics now unfolding around tighter eligibility, lower growth and a much harsher fiscal regime.
The NDIS is slowing. Expenses reached $38.0 billion, $350 million above the sustainability projection. That’s enough for Canberra. The latest Quarterly Report is full of good news; which is precisely why it matters.
More people are being supported. Participant outcomes are improving. Hospital discharge delays are down. Complaints are closing faster. Plan inflation has fallen sharply. In several operational respects, the NDIS looks better run than a year ago.
But buried in the report is the figure that will drive the next phase of NDIS politics.
For the first nine months of 2025–26, total Scheme expenses reached $38.0 billion. That’s $350 million, or 0.9 percent, above last year’s projection.
Growth is moderating but is still running at over 11 percent, a level government says is simply unsustainable.
That’s the report’s political meaning. The government has set a new fiscal destination for the NDIS. This data says the Scheme is not yet travelling quickly enough towards it.
The report says 774,456 participants had approved NDIS plans at 31 March, with 18,530 people entering the Scheme during the quarter. But 27 percent of those who had their plan reviewed had budgets reduced by more than 5 per cent. A year earlier 17 per cent were cut by that amount.
Belts are tightening. The NDIA is responding to the signals coming from Canberra.
This matters because the report landed one day after the government introduced its Securing the NDIS for Future Generations Bill. The legislation promises a tighter gate, narrower discretion, and more direct control.
The NDIS is not running wild and government’s case is harder to make from these figures. But the scheme is still too expensive. This is why the next chapter will be about cuts and controls.
Read: the full NDIS Quarterly Report Q3 2025–26. Sector analysis of the latest Quarterly Report is only beginning to emerge. abilityNEWS will return to this issue as advocates, analysts and researchers publish their assessments.
[continued on abilityNEWS’ website]
Editor’s Note
Meanwhile, at the Joint Committee of Public Accounts and Audit . . .
A hearing examined the administration of the NDIS: financial sustainability, claims compliance, performance reporting, the NDIA’s delivery of the Scheme, the Commission’s regulatory work and policy advice to government.
In other words, where politics is heading. After a Budget built around NDIS savings, and a Bill designed to tighten the Scheme, Parliament has now begun to ask if the machinery works and examine if it can be trusted with its new, tougher job.
Nic Stuart, editor
[email protected] 04 10 278 827
Gov Info
Senate inquiry opens on the Government’s new NDIS reform Bill
The Senate Community Affairs Legislation Committee is now accepting submissions on the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026. Submissions close on 29 May 2026, with the committee due to report on 16 June 2026.
Butler backs Senate scrutiny of NDIS Bill and defends permanent residents’ access to the Scheme
In a Friday Sky News interview, NDIS Minister Mark Butler said the Senate inquiry was “a very good idea” and confirmed the committee would report by 16 June. He also attacked the Coalition’s proposal to restrict NDIS access for permanent residents, arguing it would deny support to people who have lived, worked and paid taxes in Australia for years.
The Hon Mark Butler MP | minister
Butler repeats NDIS permanent-resident warning and confirms meeting with autistic teenager Patrick Saunders
In an ABC Radio National interview, Mark Butler again said the Coalition’s welfare proposal would affect permanent residents, not temporary visa holders, and described that as an “extraordinary change”. He also confirmed a meeting is being arranged with Patrick Saunders, the autistic non-speaker whose request to meet the Minister was aired on the program earlier this year.
The Hon Mark Butler MP | minister
Government funds new supported financial decision-making resources for people with intellectual disability
The Australian Government announced a $1.42 million grant to Inclusion Australia to co-design practical, accessible resources on supported financial decision-making. The two-year project, funded through the National Disability Advocacy Program, responds to Disability Royal Commission concerns about the need for better support for people with disability to make financial decisions.
Senator the Hon Jenny McAllister | minister
Parliament’s audit committee holds Canberra hearing on NDIS administration
The Joint Committee of Public Accounts and Audit held a 15 May Canberra hearing into the administration of the NDIS. This examined the NDIA, however the transcript is not yet available.
The Briefing
Disability representative organisations demand genuine Senate scrutiny of rushed NDIS reforms
Australia’s Disability Representative Organisations have called for a robust inquiry into the NDIS reform Bill, warning that the proposed timetable of about one month is too short. It says the Bill is highly technical, leaves substantial detail to future implementation, and risks excluding meaningful scrutiny.
NDS says new NDIS legislation signals fundamental reform for the sector
National Disability Services has published an initial sector briefing on the Government’s new NDIS legislation, describing it as a major reform package and setting out what is known so far from the Bill and Budget measures. The update is aimed at providers assessing the likely implications for funding, oversight and implementation.
Inclusion Australia publishes Easy Read guide to the Budget and NDIS changes
Inclusion Australia has released an Easy Read explainer on the Federal Budget and the NDIS reform process. It insists there is an urgent need for consultation on the Bill.
The Wrap
This group that championed the NDIS says Labor is about to break its promise
The disability coalition which helped campaign for the NDIS says Labor’s new legislation risks breaking the Scheme’s central promise. Concerns centre on proposed powers allowing the minister to make sweeping cuts to funding and therapies across entire classes of support.
Sydney Morning Herald | Paywall: likely
What do governments need to do this time to avoid pre-NDIS mistakes?
The ABC examines the risk that the government’s NDIS cuts could force states and territories to rebuild disability supports that no longer exist, repeating the failures of the pre-NDIS system. Advocates and experts warn that new services such as Thriving Kids cannot be rushed without risking a return to fragmented, rationed support.
ABC News | Paywall: No
Ex-NSW Labor minister and NDIS campaigner says Albanese government can't rush scheme changes
Former NSW disability minister and NDIS campaigner John Della Bosca warns the Albanese government against rushing its overhaul of the Scheme, saying the mistakes of the original rollout should not be repeated. He says replacing NDIS supports with state-run services will require careful planning, not a budget-driven sprint.
ABC News | Paywall: No
NDIS expenses jump 11pc as average plan costs hit $67,000 per year
The Australian Financial Review reports that NDIS expenses rose by more than 11 per cent over the year to March, with average annual plan costs reaching about $67,000. Labor is using the figures to strengthen its case for new legislation designed to cut Scheme growth.
Australian Financial Review | Paywall: Yes
NDIS growth jumps to 11.3 per cent in year
The Australian reports that annual NDIS spending growth has risen to 11.3 per cent, despite efforts by federal and state governments to slow the Scheme. The report follows the release of the latest NDIA Quarterly Report and comes as Canberra seeks support for its new cost-control legislation. Publicly visible preview information only.
The Australian | Paywall: Yes
Butler slashes NDIS to protect ‘social licence’
The Saturday Paper reports that NDIS Minister Mark Butler acknowledges fraud is not the main driver of Scheme growth, even as the government uses integrity concerns to justify sweeping cuts. The piece frames the reform package as an attempt to preserve the NDIS’s “social licence” by sharply reducing its future cost.
The Saturday Paper | Paywall: likely
East Arnhem Regional Council moves to protect NDIS participants from dodgy providers
A News Corp report says East Arnhem Regional Council has called for action against NDIS providers accused of exploiting remote Aboriginal participants through inducements, false claims and aggressive client recruitment. The council wants stronger provider registration and more regulatory resources for the NDIS Commission. Publicly visible preview information only.
The Courier-Mail | Paywall: Yes