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Government passes controversial NDIS Reform Bill.

Minister Jenny McAllister in a blue suit.
Emma Myers

Aug 18, 2026

The Australian Government passed the controversial NDIS Amendment (Securing the NDIS for Future Generations) Bill 2026 overnight, after months of public outcry from the disability community, human rights bodies, politicians and advocacy groups.
 
The bill passed the Senate on Tuesday night following a deal between the Labor government and the Coalition, resulting in a total of 63 amendments aimed at strengthening the NDIS.
 
Minister for the National Disability Insurance Scheme, Mark Butler, claims he empathises with the community's anxiety but maintains that the reforms are essential for the scheme's long-term sustainability.

I understand that it is causing anxiety... But I and the government... are utterly convinced it is essential reform…This is responsible reform that protects the integrity of the scheme while keeping people with disability at the centre of the NDIS.

Mark Butler, Minister for the National Disability Insurance Scheme
A key amendment negotiated was the creation of a new plan variation pathway, allowing specifically designed safeguards for those requiring continuous 24-hour care. The changes will allow individuals with high support requirements can now apply for a plan variation within 90 days if a new ministerial power to reduce funding categories impacts their essential support.
 
Minister for the National Disability Insurance Scheme, Jenny McAllister, claims that while the government is resetting funding for social and community participation, critical care—such as help with eating, dressing, and home modifications—will remain untouched by these reductions.
 
“We’ll be working with the disability community, their families, carers and the sector more broadly to implement these reforms and set the NDIS up for the long term,” she says.
 
Senator Jordon Steele-John warns the changes will "throw people with disabilities under the bus," particularly those who rely on funded supports to participate in the community.

The indiscriminate nature of this cut means that we will not know its impact until harm happens…The ripple effects of this will be terrible. The stress that it will create is beyond imagining

Senator Jordon Steele-John
The changes within the bill are expected to slash the NDIS by $37.8 billion over the next four years.
 
Mr Butler says that while the legislative hurdle has been cleared, much work remains. 
 
“We've got to do everything we can as a government to give the community confidence... that this scheme is well designed and operating as it was originally intended to.”
 
A new eligibility system based on standardised functional capacity assessments is scheduled to begin on January 1, 2028.