NDIS Reforms 2026: What the Changes Mean for Participants, Families and Providers

On 22 April 2026, Health and NDIS Minister Mark Butler announced Australia’s most significant NDIS reform since the scheme began. Built on four pillars: fighting fraud, slowing cost growth, clearer eligibility, and improving service quality. The reforms will reshape who can access the NDIS, how plans are funded, and how providers operate. Current participants continue on their existing plans until personally notified. Major eligibility changes apply to new applicants from 2028. 

For families, Support Coordinators, and disability housing providers, this week’s announcement raises immediate questions. What changes now? What changes later? And what does it mean for participants who are already in the scheme? This guide covers what the official sources have confirmed. and what it means for the people Connecting Families supports. 

What Was Announced and Why 

The National Disability Insurance Scheme has grown from 400,000 participants at its inception to more than 760,000 today.Source: health.gov.au/securingtheNDIS ↗ 

The scheme now costs approximately $50 billion annually, growing at a rate the government describes as unsustainable. At current trajectory, it would cost more than $70 billion by 2030. The reforms are designed to bring that figure to around $55 billion, saving approximately $15 billion over the forward estimates. 

“We can’t afford for the NDIS to continue growing at its present rate. But far more importantly, we can’t afford for the NDIS to fail.” — Minister Mark Butler, National Press Club, 22 April 2026 

The announcement builds on the Independent Review of the NDIS and the Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability. The full legislative package. The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill, will be introduced to parliament following the 2026–27 Budget. 

The Four Pillars of Reform 

• Fighting fraud and stopping rorts 

  • The Australian Criminal Intelligence Commission has identified organised criminal networks operating within the NDIS — including kickbacks, unexplained cash withdrawals, and in some cases coercion of participants and their families. The reform package includes a significant expansion of enforcement powers and a new digital payment system that will give the NDIA real-time visibility over claims. 
     

• • Currently, the NDIA has no visibility of evidence for approximately 90% of NDIS claims.  

    The new digital payment system addresses this directly — every claim will require identifiable provider information, and higher-risk payments will require point-of-service evidence. 

     

• Provider registration will also expand significantly 

• • more support types will require mandatory NDIS registration, beginning from July 2027 with full implementation by 2030. For SIL providers specifically, mandatory registration is already in place from 1 July 2026.Source: ndis.gov.au ↗ 

     

• • Slowing rapid cost increases
    NDIS expenditure will grow at approximately 2 percent annually for the next four years — down from the current rate of around 10 percent — before returning to 5 percent growth from 2030. The average plan budget, which has risen to approximately $31,000, will be reduced toward the 2023 average of $26,000 over two years. One of the main mechanisms for this reduction is a reset of social and community

  • participation funding: changes to which are expected to begin from 1 July 2026. The government is also establishing a $200 million Inclusive Communities Fund to help community organisations rebuild capacity to host genuine participation activities for people with disability.
    
    

• Clearer eligibility requirements

• • This is the most significant structural change in the reform package. The current system, which in some cases allows NDIS access based on diagnosis from a list of eligible conditions, will be replaced with a functional capacity assessment model. Eligibility will be determined by the actual impact of a person’s impairments on their daily life, in combination with their environment and aspirations. 

     

• • The I-CAN Support Needs Assessment tool (developed with the University of Melbourne)
    Has been selected as the basis for these assessments. Minister Butler confirmed the tool will need to indicate a significant reduction in a person’s functional capacity for NDIS access to be granted.Source: The Conversation ↗ 

• Timeline – Eligibility Changes 

• • New eligibility criteria will not apply to existing participants immediately. Boundary changes apply to prospective participants from 1 January 2028. Current participants will be reassessed over a transition period. A technical advisory group will first be assembled to develop the new criteria — meaning participants and applicants are unlikely to see eligibility changes before 2028 at the earliest. 
    
    

• • Delivering quality services
    The government has signalled a significant shift away from the current open NDIS market model toward a commissioned approach for key support types, particularly plan management, support coordination, and Supported Independent Living. Rather than participants choosing from an open market of providers, government will identify and vet a shortlist of quality providers.
     

Important Dates to remember 

• Jul 2026 – Consultation begins on a commissioned model for home and living supports (SIL). 

• Oct 2027 –  New plan management approach implemented, beginning with a 6-month transition. 

• Jul 2028 – Newly commissioned support coordination function begins. 

• End 2030 –  Full expanded provider registration implemented across all support types. 

What This Means for SIL Providers 

For Supported Independent Living providers specifically, the reform package has two immediate implications and one longer-term structural change to plan for. 

The first is the mandatory registration requirement already in place from 1 July 2026. Any SIL provider not currently NDIS registered cannot legally deliver SIL supports after that date. Connecting Families is fully NDIS registered and operating to Quality and Safeguards Commission standards. 

The second is the consultation on a commissioned model for home and living supports, which begins in July 2026. This is a significant directional change — government moving from an open market to a vetted provider list for SIL. The detail of how this will work has not yet been determined. Providers who are already registered, already demonstrating quality outcomes, and already working within NDIS Commission standards are best positioned for whatever the commissioned model looks like when finalised. 

What this means for Support Coordinators 

If you are currently supporting participants in SIL arrangements with unregistered providers, now is the time to begin checking registration status and planning for any transition that may be required. Connecting Families is registered and can support urgent transitions — including from hospital or Out-of-Home Care — across NSW, QLD, and SA. 

Key Facts about the NDIS Reform 2026 

• The NDIS reform package was announced on 22 April 2026 by Health and NDIS Minister Mark Butler at the National Press Club. 
   

• The NDIS currently costs $50 billion annually and has grown from 400,000 to 760,000 participants — significantly beyond original projections. 
   

• The reforms aim to reduce projected costs from $70 billion to $55 billion by 2030 — saving approximately $15 billion over the forward estimates. 
   

• Approximately 160,000 participants with lower support needs are expected to exit the scheme over four years as new eligibility criteria are applied. 
   

• New NDIS eligibility will be based on functional capacity — not diagnosis — assessed using the I-CAN tool developed with the University of Melbourne. 
   

• Eligibility boundary changes apply to prospective participants from 1 January 2028. Current participants are reassessed over a transition period. 
   

• New NDIS framework planning has been delayed from mid-2026 to 1 April 2027 following consultation with the disability community. 
   

• SIL providers must hold mandatory NDIS registration from 1 July 2026. A commissioned SIL model will be consulted on from July 2026. 

• Social and community participation funding changes are expected to begin from 1 July 2026. The $200 million Inclusive Communities Fund partially offsets this. 
   

• All NDIS providers will be required to enrol in a new digital payment system. The NDIA currently has no visibility of evidence for 90% of claims. 

What Stays the Same Right Now 

Given the scale and pace of announcements this week, it is important to be clear about what is not changing, at least not yet. 

The NDIA has confirmed that current NDIS eligibility and planning policies remain in place. Participants should continue to access their disability-related supports and services as outlined in their existing NDIS plans. Providers should continue to support participants in line with funding in existing approved plans. Participants will be informed well in advance before anything changes for them personally.

Source: Physical Disability Australia / NDIS ↗ 

The legislation required to implement most of these changes has not yet been introduced. It will be brought to parliament during Budget sittings following the release of the 2026–27 Budget. Until legislation passes, many of the announced changes cannot take legal effect. 

Frequently Asked Questions 

• What are the NDIS reforms announced in April 2026? 

• • On 22 April 2026, Minister Mark Butler announced a major reform package built on four pillars: fighting fraud and rorts, slowing cost growth, clearer eligibility requirements, and improving service quality. The changes include new functional capacity-based eligibility, reduced average plan budgets, a delay to new framework planning until April 2027, and tighter provider registration requirements. 
     

• Will I lose my NDIS funding under the 2026 reforms? 

• • Current participants should continue accessing their NDIS supports under their existing plans until personally notified. Social and community participation funding may change from 1 July 2026. Broader eligibility boundary changes apply to prospective participants from 1 January 2028, with current participants reassessed over a transition period. 
     

• How do the NDIS 2026 reforms affect SIL providers? 

• • SIL providers must hold mandatory NDIS registration from 1 July 2026. The government has announced consultation on a commissioned SIL model — beginning July 2026 — which would move SIL from an open market toward a government-vetted provider list. Registered providers already operating to Quality and Safeguards Commission standards are best positioned for this transition.
    
    

• When does new NDIS framework planning start?

• • New NDIS framework planning has been delayed from mid-2026 to 1 April 2027, following consultation with people with disability and their families. Current planning rules remain in place until then. 
     

• Is the NDIS being cut? 

• • The NDIS will continue to grow; but at a significantly slower rate. Growth is being reduced from around 10 percent annually to 2 percent for four years, before returning to 5 percent from 2030. The scheme will remain the largest social program in Australia outside the Age Pension. The government’s stated intention is to make it sustainable for future generations, not to end it. 

Key Takeaways 

• The reforms were announced on 22 April 2026, the most significant NDIS restructure since the scheme began. 
   

• Current participants continue on existing plans until personally notified. Nothing changes automatically or immediately for individuals. 
   

• New eligibility rules based on functional capacity, not diagnosis, will apply to new applicants from 2028. 
   

• SIL mandatory registration is already in effect from 1 July 2026. Consultation on a commissioned SIL model begins July 2026. 
   

• New framework planning is delayed from mid-2026 to 1 April 2027. 
   

• Most reform changes require new legislation, to be introduced after the 2026–27 Budget. 
   

• Connecting Families is NDIS registered, SSRC accredited, and actively accepting referrals across NSW, QLD, and SA. 

What This Means for Connecting Families and How We Can Help 

Connecting Families has been an NDIS registered SIL and disability housing provider since before the mandatory registration requirement was introduced. We operate across New South Wales, Queensland, and South Australia — and we have been following the reform announcements closely, because they directly affect the participants we support and the Support Coordinators and DCJ workers who refer to us. 

Here is how the reforms intersect with what we do, and where we can help right now. 

On mandatory SIL registration 

From 1 July 2026, all SIL providers must be NDIS registered. Connecting Families is already fully registered and compliant with NDIS Quality and Safeguards Commission standards. If you are currently supporting a participant in a SIL arrangement with an unregistered provider — or you are unsure of a provider’s registration status, now is the time to check. We can help facilitate an urgent transition if one is needed, including from hospital or Out-of-Home Care situations, in as few as six days for complex cases. 

On the commissioned SIL model consultation 

The government’s plan to move toward a commissioned model for home and living supports is a significant structural change that will be consulted on from July 2026. Connecting Families will be actively participating in that consultation. As a registered provider with an established track record in complex SIL, hospital-to-home transitions, and child protection-related placements, we are well positioned within the framework the government is moving toward, quality, accountability, and clinical capability over open market volume. 

On eligibility changes and participant transitions 

The shift from diagnosis-based to functional capacity-based eligibility will be significant for some of the participants Connecting Families supports; particularly those with complex or dual diagnoses whose NDIS access was historically based on a listed condition. These changes do not apply to new applicants until 2028, and current participants will be transitioned over a managed period. If you are concerned about how a participant’s eligibility may be affected, speak with their Support Coordinator now while there is time to build an evidence base for their functional support needs. 

Homes available now, while the reform picture becomes clearer 

The announcement does not change what is available right now. We have SIL homes available across Northern Sydney (NSW), Ipswich (QLD), and Adelaide (SA), as well as co-tenancy options across Brisbane, Gold Coast, Logan, and Caboolture in Queensland. If a participant needs housing, whether from hospital, from OOHC, or from an existing SIL arrangement that is not working. We are ready to have that conversation today. 

Sources 

All information in this article is drawn from publicly accessible, non-paywalled government and sector sources. No paywalled publications were used. 

Australian Government: Department of Health, Disability and Ageing 
Securing the NDIS for Future Generations, Minister Butler’s National Press Club Address, 22 April 2026 
health.gov.au/securingtheNDIS ↗ 

NDIS: National Disability Insurance Agency 
Securing the NDIS for Future Generations — Official NDIA Announcement 
ndis.gov.au/news/11168 ↗ 
 

The Conversation — UNSW Sydney 
Tightened Eligibility and Cuts to Plans: What the NDIS Changes Mean for Participants 
theconversation.com ↗ 

Physical Disability Australia 
Updates from the NDIS Following Yesterday’s Announcements by Mark Butler MP at the National Press Club 
pda.org.au ↗ 
 

Better Care Delivered 
NDIS Changes Announced: What’s New and What It May Mean for You 
bcd.org.au ↗ 
 

Speech Pathology Australia 
Minister Mark Butler’s National Press Club — NDIS Reform Analysis 
speechpathologyaustralia.org.au ↗ 

Connecting Families Australia · NDIS Registered · NSW · QLD · SA