NDIS Reform Bill Clears Senate: Spending Growth to Be Capped at 8 Percent

The Senate has finally passed long-awaited reforms to the National Disability Insurance Scheme (NDIS) after a week of debate in Parliament.
The changes are aimed at curbing the spiralling cost of the NDIS, which is predicted to cost the taxpayer $50 billion by 2025-2026.
Key measures in the legislation include an 8 percent cap on NDIS’s spending growth, and stricter eligibility requirements for services. These are aimed at saving $14.4 billion over the next four years.
The reforms will also see a larger contribution from states and territories in supporting NDIS participants.
Senator Jenny McAllister, speaking on behalf of the government, said the legislation laid the groundwork for implementing reforms recommended by the independent NDIS review.
“This legislation achieves several key objectives,” McAllister explained.
“It halts the automatic top-up of participant plans that are exhausted early without any change in circumstances, it establishes the foundation for implementing the review’s recommendation of a more flexible whole-of-person budget for all participants, and it allows for the exclusion of supports that do not align with the original intent of the NDIA and should be funded by other service systems.”
The bill’s passage was not without challenge within the Senate.
Liberal Senator Hollie Hughes acknowledged that while she was not “filled with confidence” in the legislation, there were aspects that the Liberal-National Coalition could not oppose.
She stressed the importance of the government’s commitment to co-designing services, urging them to engage with those who “genuinely need this scheme.”
The bill faced scrutiny in the Senate last week, with questions raised about the government’s plans to fund “needs assessments for NDIS participants, which would help determine their funding needs.”
In response, a spokesperson for NDIS Minister Bill Shorten clarified that the government does not intend to make users pay for these assessments.
“The minister’s categorical view is that participants should not pay for their support needs assessment,” they said.
The government has also pledged to conduct extensive consultations following the bill’s passage through Parliament.