NDIS Reform Bill Delayed Until August as 160,000 Participants Face Access Cuts

The federal government has confirmed the NDIS reform bill will not proceed until at least August 2026. The delay follows an eight-week extension, which the government agreed to in return for Greens support on separate tax laws.

The NDIS is the National Disability Insurance Scheme. It funds support for Australians with a permanent and significant disability. It began in 2013.

The delay pushes back the biggest overhaul of the scheme since it started. The government says the hold-up will cost "a few hundred million dollars". It has not given an exact figure and will not do so until the end of this year.

Key takeaways

• The NDIS reform bill is delayed until at least August 2026, after an eight-week parliamentary extension.
• The government estimates about 160,000 Australians will lose NDIS access by the end of the decade under the proposed changes.
• Access eligibility changes are not expected to start until January 2028. This gives states and territories time to build replacement supports.
• Government figures show the NDIS budget grew from $4 billion to $12 billion a year. Without change, it is projected to reach $20 billion a year by the end of the decade.

What are the latest NDIS reform bill updates?

Senator Jenny McAllister is the Minister for Disability and the NDIS. She confirmed the delay in a podcast interview.

The government struck a deal with the Greens. It gave an eight-week extension to the bill, plus amendments. In return, the Greens will support the government's tax changes.

McAllister said the reforms are needed to keep the scheme going. "Our broad posture is that the reforms we're undertaking are necessary to make sure that the scheme is here in the long term," she said. "We want the scheme to be in place for the child with disability that's born in ten years time."

She said the changes would be hard for many people. "We know that a change to a scheme that is as important as this will be confronting for people with disability," McAllister said.

She noted the government made its plans public in April, before the federal budget. This allowed a longer public conversation and consultation with disability leaders around the country.

A key change resets social and community participation budgets to 2023 levels. Social and community participation supports help people join activities and connect with others.

McAllister said this targeted approach would protect other supports. "Supports for people with continence, with showering, with other forms of personal care, assistance in the home — those kinds of supports are not touched by this element of the reform," she said.

The government also plans a technical advisory group. It will advise on how to assess "permanent and significant disability". This is the core rule for who can access the NDIS.

What do the NDIS funding cuts 2024 numbers mean?

McAllister provided figures showing the financial pressure behind the reforms.

The NDIA is the National Disability Insurance Agency. It is the government body that runs the NDIS. It has scaled up its compliance work.

McAllister said the NDIA now checks more claims in a single day than the previous government checked in a whole year. The government has invested about $1.35 billion since May 2022 in fraud prevention, systems, staffing and new laws.

What happens to the 160,000 people who may lose access?

This is the most pressing question for participants, families and every NDIS provider in Melbourne and across the country. The government estimates about 160,000 Australians will lose NDIS access by the end of the decade under the reforms.

McAllister said people could fall through the gaps if state-based supports are not ready in time. "We don't want to see people fall between two stools," she said.

She added that Prime Minister Anthony Albanese and Health Minister Mark Butler "have been very clear that [the government] will work with the states and territories to make sure that the supports are in place."

McAllister confirmed access eligibility changes are not expected to start until January 2028. "We have time to work with the states and territories," she said. She admitted it was "an ambitious timetable".

The Department of Social Services (DSS) has policy oversight of the NDIS. The DSS and state governments will need to co-design other community support pathways. These are for people who no longer qualify under the tighter rules.

The government says deep consultation with the disability community and states will run alongside the technical advisory group process.

What should participants and families do now?

The practical priority is to stay informed as the bill moves toward the August sitting.

People on the NDIS should know that personal care, continence and in-home supports are protected under the current reform design, according to McAllister. Social and community participation funding is the area targeted for budget resets to 2023 levels.

At times of policy uncertainty, the most common concern is not knowing which supports are at risk. On that point, the minister has been clear. Personal care and daily living supports are not the target of these cuts.

The focus is on slowing growth in social and community participation budgets. The government argues these have grown well beyond the scheme's original intent.

The reform debate will intensify when parliament resumes. Participants, carers and disability organisations should watch announcements from the NDIA and DSS closely as the August sitting approaches.

Frequently Asked Questions

Why has the NDIS reform bill been delayed until August 2026?

The federal government agreed to an eight-week extension to the NDIS reform bill as part of a deal to secure Greens support for passing separate tax legislation. The government has acknowledged the delay will cost 'a few hundred million dollars', though it has not provided a precise figure and says it will do so by the end of 2026.

How many NDIS participants will lose access under the proposed reforms?

According to the government's own estimates, approximately 160,000 Australians will lose access to the NDIS by the end of the decade as a result of the proposed eligibility changes. The government says the NDIS was always intended for people with permanent and significant disability, and the reforms are designed to clarify that target group.

When will the NDIS eligibility changes take effect?

Minister Jenny McAllister confirmed that changes to NDIS access eligibility are not expected to take effect until January 2028. The government says this timeline gives states and territories sufficient time to develop alternative community support pathways for people who will no longer qualify under the tightened criteria.

Which NDIS supports are being cut and which are protected?

The government is targeting social and community participation budgets, resetting them to 2023 levels to control cost growth. According to Minister McAllister, supports for personal care, continence, showering, and in-home assistance are explicitly not affected by this element of the reform.

How much has the government spent on NDIS fraud and integrity?

The government has invested approximately $1.35 billion since coming to office in May 2022 to tackle fraud and promote integrity in the NDIS. The NDIA's current estimate of integrity leakage in the scheme is 8%, down from a previous Quality and Safeguard Commissioner estimate of up to 20%.

Written and reviewed by the LuminCare team — a registered NDIS provider supporting participants across Australia. Last updated 7 July 2026. This article is general information, not personal advice; for decisions about your plan, speak with your support coordinator or the NDIA.