{"id":623049,"date":"2026-04-22T07:16:08","date_gmt":"2026-04-22T07:16:08","guid":{"rendered":"https:\/\/www.newsbeep.com\/au\/623049\/"},"modified":"2026-04-22T07:16:08","modified_gmt":"2026-04-22T07:16:08","slug":"ndis-slashed-and-higher-health-insurance-subsidy-for-over-65s-scrapped-in-health-minister-butlers-package","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/au\/623049\/","title":{"rendered":"NDIS slashed and higher health insurance subsidy for over 65s scrapped, in Health Minister Butler\u2019s package"},"content":{"rendered":"<p>The government will slash spending in real terms on the National Disability Insurance Scheme over four years, as it undertakes a massive \u201creset\u201d of the program. <\/p>\n<p>People with lower support needs will be moved off the scheme and over the next two years the average spending on plans will reduce to about A$26,000 \u2013 back to where it was in 2023 \u2013  down from the current $31,000.<\/p>\n<p>Spending on third parties who manage most NDIS plans and claims will be cut by 30%, and more providers will need to be registered, particularly those giving personal care. <\/p>\n<p>Announcing the crackdown, Health Minister Mark Butler said the changes would cut the number on the scheme, currently 760,000, by 160,000 to about 600,000 by the end of the decade, instead of the number growing to well over 900,000.<\/p>\n<p>Spending will be about 2% a year for the next four years, only half the current inflation rate, before rising to about 5% annual growth after that.  At present the NDIS cost is growing at 10%. <\/p>\n<p>Instead of a projected $70 billion in 2030, the cost of the scheme will be  about $55 billion, Butler told the National Press Club. Currently the scheme is costing about $50 billion. <\/p>\n<p>In aged care changes, Butler also announced the government would scrap the higher subsidy for private health insurance  for people  aged over 65. Butler said this was \u201cnot fair between generations\u201d.  <\/p>\n<p>\u201cThis budget will return the rebate for older Australians back to the level paid for everyone else and divert the money back into aged care,\u201d Butler said. <\/p>\n<p>This includes spending $1 billion to scrap the co-payment for showering and other personal services in home care packages, support the construction of an extra 5,000 aged care beds each year, and invest more than $200 million to expand dementia care. <\/p>\n<\/p>\n<p>Butler described the NDIS reforms as \u201ca move away from the let-it-rip market\u201d. <\/p>\n<p>\u201cYou need more ID to get into a licensed club than to be an NDIS provider, that will change,\u201d Butler said.<\/p>\n<p>Butler will introduce legislation for many of the changes as soon as parliament resumes for the budget session next month.  The drastic federal government changes will throw more of the burden for disability support onto the states, which have been reluctant to do a lot more. <\/p>\n<p>New South Wales premier Chris Minns said the NDIS needed to be on a firmer financial and economic footing. <\/p>\n<p>\u201cI\u2019m not going to throw sand in the gears of the federal government.  They\u2019re grappling with an issue that, if I were in their shoes, I\u2019d be doing the same thing.<\/p>\n<p>&#8220;I just think we need to be clear. We can\u2019t provide at the state level the same services that were currently provided by the NDIS. This is going to be billions. We don\u2019t have billions. We don\u2019t have billions to throw into it,\u201d Minns said.<\/p>\n<p>Despite earlier speculation, the reforms do not remove particular conditions from NDIS eligibility. Eligibility will depend on people\u2019s level of disability. <\/p>\n<p>Changes will apply to those presently on the NDIS as well as to new entrants. <\/p>\n<p>There will be tighter  criteria for unscheduled  reassessments of plans, as well as tighter assessment of  support for new entrants.<\/p>\n<p>Plan rollovers  will be ended and a stop will be put to unspent  funds being rolled over.  Diagnosis lists  will be removed  as the means  of entry to the scheme. <\/p>\n<p>Butler said: \u201cPart of the challenge we face is that the NDIS has become a soft target for shonks and rorters \u2013 as well as the worst elements of organised crime\u201d.<\/p>\n<p>\u201cThese reforms are about much more than budget savings. This is about saving the NDIS itself,\u201d Butler said.<\/p>\n<p>\u201cIf we act now, we can safeguard and strengthen it, so that it serves Australians it was created to help.<\/p>\n<p>&#8220;Then we can make sure that \u2013 like Medicare \u2013 the NDIS is still changing lives, three decades from now.<\/p>\n<p>&#8220;But if we wait, if we hang back, if we imagine that hard choices can wait for easier times. Then the decision will simply be taken out of our hands.<\/p>\n<p>&#8220;The social licence will be lost. And the NDIS will not be able to deliver what Australians with disability deserve.\u201d<\/p>\n<p>The government faces a sharp backlash from disability representatives. <\/p>\n<p>Its aim to get its changes flowing quickly will depend on how soon it can get legislation through the Senate. This is likely to depend on the opposition\u2019s attitude.<\/p>\n","protected":false},"excerpt":{"rendered":"The government will slash spending in real terms on the National Disability Insurance Scheme over four years, as&hellip;\n","protected":false},"author":2,"featured_media":623050,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[64,63,137,500],"class_list":{"0":"post-623049","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-healthcare","8":"tag-au","9":"tag-australia","10":"tag-health","11":"tag-healthcare"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/623049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/comments?post=623049"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/posts\/623049\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media\/623050"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/media?parent=623049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/categories?post=623049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/au\/wp-json\/wp\/v2\/tags?post=623049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}