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Future of NDIS: What Reforms Are Needed to Ensure Life-Changing Support for Australians with Disabil

National Cabinet acknowledged the need for reforms to secure the future of the NDIS, ensuring it can continue to provide life-changing support to future generations of Australians with a disability.

Governments noted the forthcoming release of the final report of the Independent NDIS Review, co-led by Professor Bruce Bonyhady AM and Ms Lisa Paul AO PSM.

As an initial response to the NDIS Review, National Cabinet agreed to work together to:

  • Implement legislative and other changes to the NDIS to improve the experience of participants and restore the original intent of the Scheme to support people with permanent and significant disability, within a broader ecosystem of supports.

  • Adjust state and territory NDIS contribution escalation rates, increasing from 4 per cent to be in line with actual Scheme growth, capped at 8 per cent, with the Commonwealth paying the remainder of Scheme costs growth, commencing from 1 July 2028.

The National Cabinet agreed to jointly design additional Foundational Supports to be jointly commissioned by the Commonwealth and the states, with the work oversighted by the First Secretaries Group. Additionally, the Council of Federal Financial Relations (CFFR) will oversight costs of the reforms and report to National Cabinet.

An initial tranche of legislation will be introduced into the Commonwealth Parliament in the first half of 2024, with rule changes phased in as developed.

The delivery of Foundational Supports would look to be delivered through existing government service settings where appropriate (e.g. child care, schools), phased in over time.

Funding would be agreed through new Federal Funding Agreements, with additional costs split 50-50, and final details to be settled through CFFR.

The Commonwealth agreed to cap an additional expenditure for states and territories on new foundational disability services to ensure the combined health and disability reforms will see all states and territories better off.

These commitments demonstrate Governments’ ongoing commitment to the NDIS. Discussions with the disability community will continue over the coming months as we work together to make the positive changes needed for people with disability.

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