The measures \u2013 to be rolled out progressively over the next two years \u2013 are forecast to save the federal budget about $36.2bn through to 2030<\/a> and reduce participant numbers to 600,000, down from a projected 900,000 at the end of the decade.<\/p>\n There are about 760,000 participants on the scheme.<\/p>\n Opposition and crossbench MPs have been briefed on the legislation by the government, which wants it passed as soon as possible to start implementing the changes.<\/p>\n Sign up for the Breaking News Australia email <\/a><\/p>\n Briefing documents seen by Guardian Australia reveal the bill will clarify the definition of \u201cpermanence\u201d for disability, which will act as a gateway test for access to the scheme.<\/p>\n Under the definition, entry to the NDIS would only be granted if \u201call appropriate treatment that can remedy or alleviate an impairment has been undertaken; no other treatment is likely to materially improve the impact of the impairment, and the impairment is likely to be lifelong.\u201d<\/p>\n Changes to toughen up the criteria were recommended in the 2023 review of the NDIS.<\/p>\n A government spokesperson confirmed the definition in a statement to Guardian Australia.<\/p>\n \u201cThe NDIS was designed for people with permanent and significant disability. If a person can access treatment that will treat or alleviate the impact of an impairment, the NDIS is not the appropriate service system,\u201d the spokesperson said.<\/p>\n \u201cThe NDIS was never intended to replace health, rehabilitation and treatment services which play a critical role in preventing lifelong disability.\u201d<\/p>\n The Greens\u2019 disability spokesperson, Jordon Steele-John, said the proposal was \u201cextraordinarily alarming\u201d.<\/p>\n \u201cIf that is what they [the government] do, people would have to spend even more time than they currently do, running around, getting treatments that may be ineffective or inappropriate,\u201d he said.<\/p>\n \u201cIt will be very costly even to be able to even stand a chance of accessing the NDIS.\u201d<\/p>\n The new test would start from 1 January 2028, according to the briefing documents.<\/p>\n After that, as existing participants are progressively reassessed, those who do not meet the requirement would be pushed off the scheme.<\/p>\n Steele-John said the changes to slow the scheme\u2019s growth were \u201ccruel\u201d, confirming the Greens would oppose them in parliament.<\/p>\n That means Labor will need to rely on support from the opposition, whose leader, Angus Taylor, has signalled he is prepared to work<\/a> with the government.<\/p>\n However the Coalition is unlikely to wave the changes through quickly, with the shadow NDIS minister, Melissa McIntosh, confirming the opposition would support an inquiry into the legislation.<\/p>\n \u201cIt\u2019s important that due diligence is done, particularly as we have been receiving an overwhelming amount of feedback that the government has once again neglected to consult with the Australians directly affected by this legislation,\u201d she said.<\/p>\n \u201cPeople with a disability are feeling ambushed by the Government.\u201d<\/p>\n Speaking in parliament, Butler said the NDIS was a \u201ctruly cherished institution\u201d but was costing too much.<\/p>\n \u201cWe simply can\u2019t go on like this. We can\u2019t afford for the NDIS to continue to fail,\u201d he said.<\/p>\n Although the eligibility changes will likely be the single most impactful lever for the government to reduce the NDIS\u2019s costs, there are other changes also planned.<\/p>\n Participants and providers will need to retain records relating to claims by the end of May, and supported independent living providers will, from June, be required to register with the NDIS watchdog, the NDIS Quality and Safety Commission.<\/p>\n The first of the foundational support programs, Thriving Kids, is scheduled to begin rolling out from October. It will offer support services for children aged nine and under with autism and developmental delays.<\/p>\n A reduction of the social and community participation budgets for participants will also begin from October.<\/p>\n The major changes to how the NDIS works are scheduled to start in 2027.<\/p>\n From February, a new criteria to determine what supports the NDIS can offer will be introduced and unused money from budgets will no longer be rolled over, according to the health department\u2019s timeline<\/a> released after the budget.<\/p>\n In the same year, a new framework for how NDIS plans are reassessed and renewed will be introduced and the basic registration information will begin with a view to include most providers.<\/p>\n The budget papers indicate the government expects the changes will recoup $36.2bn over the next four years, with payments to participants plateauing at between $53bn and $54bn a year until 2030.<\/p>\n The average growth rate would be reduced to an average of 3.6% over the four years after peaking at 22.9% in 2022-23<\/a> during Labor\u2019s first year in government.<\/p>\n![\"Why](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/6478.jpg\")
Why was the NDIS so severely cut? And your other 2026 federal budget questions answered \u2013 video<\/p>\n