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Mark Butler’s reform bill does not abolish the NDIS; it redraws it - something far more consequential.

The plans have been tabled, now the architecture is being built. The NDIS (Securing the NDIS for Future Generations) Bill explains:

Functional capacity becomes the single core basis for NDIS eligibility.

A Technical Advisory Group or TAG (not Tactical Assault Group - despite some similarity as government ‘shock troops’) will help decide what’s in and what’s out.

Tighter test for “permanent” disability, including a requirement that people have “undertaken all appropriate treatment”. It allows the NDIA to consider whether another government system should provide support instead.

This matters because it demonstrates the government’s target is not simply eliminating fraud. It is slowing growth.

Funding will be pulled from whole classes of support; including social and community participation. The scheme’s financial sustainability will play a critical role in determining what’s “reasonable and necessary”.

This Bill makes it much harder to seek a plan reassessment without a genuine, ongoing change in need. It requires plans to end. Unused funds won’t just roll over.

Compliance language is tougher too. Claims must be lodged within 90 days. Participants, nominees and providers must retain records. The NDIA gets stronger enforcement powers. The Minister will set prices. Plan management will be by approved panels. Automated decision-making is enabled. The system will be more centralised, regulated, and less forgiving.

This legislation is not a footnote to the Budget. It is the legal spine of the government’s redesign of the Scheme.

Butler says the NDIS must be secured for future generations. This Bill shows how: by tightening the gate, narrowing discretion and giving government new powers to hold the Scheme down.

The critical timeline

Butler says a Senate inquiry will report back in just one month (by June 16). He also thanked shadow minister Melissa McIntosh for “working together on a sensible process”.

The bill is highly likely to become law by the start of the new financial year (July 1).

[continued on the abilityNEWS website]

The legislation is tabled. There will now be a brief squabble as it’s assessed. The opposition will push for (minor) changes as the Senate examines the bill. The government will give them a win. The Greens will protest in outrage and be pushed to one side. The numbers mean they are irrelevant. The coalition will determine what happens.

The legislation will become law by July. There’s a more detailed explainer of these changes and timetable on the abilityNEWS website.

Please feel free to get in touch as you digest the changes.

Best, Nic Stuart [email protected] or 04 10 278 827

Government introduces Bill to reshape NDIS eligibility, plans, funding controls and market settings

The Australian Government introduced the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 to Parliament on 14 May. The Department of Health, Disability and Ageing says the Bill focuses on clarifying eligibility and funded supports, addressing fraud, and updating governance and administrative arrangements.

Department of Health, Disability and Ageing

Bill is referred to Senate committee, with report due by 16 June

Parliament’s Bill page confirms the Securing the NDIS for Future Generations Bill was referred on 14 May to the Senate Community Affairs Legislation Committee. The committee is due to report by 16 June 2026, setting up a compressed scrutiny period before the new financial year.

Parliament of Australia

Government releases Bill fact sheet, participant FAQs, provider FAQs and implementation timeline

The Department has published a package of supporting materials for the new NDIS Bill, including a fact sheet, participant FAQs, provider FAQs and a reform timeline. These documents outline proposed changes to plan reassessments, claims, plan rollovers, pricing, access rules and future implementation dates.

Department of Health, Disability and Ageing

Audit Committee schedules hearing on NDIS administration and financial sustainability

The Joint Committee of Public Accounts and Audit announced a 15 May public hearing for its inquiry into the administration of the NDIS. Witnesses listed include the Department of Health, Disability and Ageing, Professionals Australia, National Disability Services, Villamanta Disability Rights Legal Service, Intrepidus Law and Alliance20.

Parliament of Australia

/National Disability Services says new NDIS legislation signals fundamental reform

National Disability Services published an initial sector response to the government’s new NDIS Bill, describing it as major legislation with significant implications for providers and the wider Scheme. The item links the Bill to the Budget reform agenda and signals that providers should expect substantial changes to funding, oversight and implementation settings.

National Disability Services

Disability Services Consulting says new NDIS Bill will have far-reaching consequences

Disability Services Consulting has published an initial “Breaking News” overview of the NDIS (Securing the NDIS for Future Generations) Bill, saying it has opted for “accuracy over speed” because the consequences are far-reaching. Its first summary highlights the Bill’s most significant elements: functional capacity as the basis for eligibility, tighter reassessment rules, the power to reduce whole categories of support, revised “reasonable and necessary” criteria, stronger compliance powers, automated decision-making, approved plan manager panels and the 90-day claims rule.

Disability Services Consulting

Occupational Therapy Australia warns new NDIS Bill enables funding cuts across whole support categories

Occupational Therapy Australia says the new Bill proposes significant changes to eligibility, planning, funding and governance, and is particularly concerned by the mechanism allowing funding reductions across entire groups of supports. OTA highlights the proposed 10 per cent reduction to capacity building daily activity supports and 50 per cent reduction to social, civic and community participation supports, and says it will make a submission to the Senate inquiry.

Occupational Therapy Australia

NDIS bill creates funding cut powers, civil penalties and stricter test for access

The ABC reports the new NDIS Bill gives the minister power to reduce funding for some supports, tightens the test for proving a disability is permanent, and allows automated decision-making. It also details new civil penalties, record-keeping requirements and a shorter claims window.

ABC News | Paywall: No

NDIS changes: treatment required before permanent disability status

The Australian reports the Bill requires consideration of whether applicants have undertaken appropriate treatment, makes the NDIA consider alternative support systems, and prevents unspent plan funds from rolling over. It says Butler linked the Bill to long-term NDIS cost control and defended automated decision-making.

The Australian | Paywall: Yes

NDIS shake-up gives Butler sweeping powers to cut scheme

The Australian Financial Review reports the new legislation gives Butler sweeping powers to cut some areas of the Scheme. This is an analysis of the Bill’s ministerial powers and cost-control implications.

Australian Financial Review | Paywall: Yes

Strict new criteria, sweeping ministerial powers: All the changes coming for NDIS

The Brisbane Times reports the legislation introduces stricter NDIS criteria while giving the minister broad new powers over the Scheme. This is a representative version of the Nine/Fairfax network’s coverage.

Brisbane Times | Paywall: likely

NDIS cuts could leave some participants with a funding gap. How will the changes affect you?

The Guardian’s explainer says the Bill could leave some participants with a funding gap, while also expanding ministerial power over support categories, price caps and NDIS rules. It highlights the new functional-capacity access framework, the “all appropriate” treatment test, reassessment limits, debt powers and the 90-day claims rule.

The Guardian | Paywall: No

Coalition to bar non-citizens from welfare, NDIS under fresh migration policy

The ABC reports Opposition Leader Angus Taylor wants non-citizens, including permanent residents, excluded from more than a dozen government payments and services, including the NDIS and carer payments. The proposal was announced ahead of his Budget reply speech.

ABC News | Paywall: No

Angus Taylor’s plan to bar migrants from welfare payments undermines our quest for belonging

In a Guardian opinion piece, Shadi Khan Saif argues that the Coalition’s proposal to restrict access to supports including the NDIS would make belonging more conditional for migrants and humanitarian entrants. The piece is framed around disability support, carer payments and welfare eligibility.

The Guardian | Paywall: No

Disability watchdog bans Michael Barry, Thornton, issues notices to George Anim, East Maitland and Newy Care, Fletcher

The NDIS Quality and Safeguards Commission permanently banned Michael John Barry from NDIS work and issued compliance notices to two Hunter-region providers over alleged audit failures.

Geelong Advertiser | Paywall: Yes

NDIS must implement 'strong digital practices' to avoid fraud

Sky News carries a Chris Kenny program clip in which Kismet chief executive Mark Woodland argues digital invoicing would help reduce NDIS invoice fraud. The comments are framed as a way of tightening up on NDIS fraud.

Sky News | Paywall: unclear

'Runaway growth' from the NDIS is 'problematic' for the government

Sky News host Chris Kenny says the new reforms are ‘justified’, describing NDIS cost growth as having been “problematic” for the government in his short opinion video.

Sky News | Paywall: unclear