NDIS Reforms 2026: Policy Changes and Growing Uncertainty
Independent MPs, led by Dr Monique Ryan, have raised public concerns about potential reductions in NDIS funding alongside broader reforms expected ahead of the 2026–27 Federal Budget. In a media release dated 9 April 2026, the group confirmed they had written to Ministers Mark Butler and Jenny McAllister. Their concerns focus on possible funding cuts, the introduction of an automated plan-setting tool, and the risk that access to supports may tighten before alternative systems are fully operational.
(Source: Dr Monique Ryan MP media release distributed via Medianet, 9 April 2026).
These concerns centre on whether changes to funding or access may occur before alternative systems are fully established.
Timing, Continuity, and the Direction of Reform
This issue extends beyond government spending. At its core, it is about timing, continuity, and whether individuals can continue accessing the supports they depend on. The Prime Minister’s National Cabinet statement from 30 January 2026 outlines a plan to limit annual NDIS cost growth to between 5 and 6 percent. It also confirms the rollout of the Thriving Kids initiative as part of broader foundational support reforms. According to this statement, Thriving Kids will begin on 1 October 2026 and reach full implementation by 1 January 2028.
What This Means for Participants and Families
For participants and their families, uncertainty is the most immediate concern. The Department of Health, Disability and Ageing has indicated that changes to NDIS access linked to Thriving Kids will begin from 1 January 2028. These changes will apply to children aged 8 and under with developmental delay or autism who have low to moderate support needs. As a result, families are facing a prolonged transition period that could last several years.
The Impact of Ongoing Uncertainty
For many families, this means trying to plan therapy, equipment, and daily routines without knowing if supports will remain in place. Even in the absence of confirmed funding cuts, ongoing public discussion can increase anxiety among participants. Many individuals already manage complex care needs, service coordination, and regular plan reviews. When there is uncertainty about whether supports will continue, families may delay therapy, postpone equipment purchases, or struggle to plan for education and community involvement. While the MPs’ statements are politically framed, the uncertainty they highlight reflects genuine, everyday challenges within the NDIS environment.
For providers and businesses operating within the NDIS, the situation presents a different but equally serious risk: instability. Changes to participant budgets, planning processes, or eligibility pathways can disrupt service delivery and financial forecasting. Providers may experience reduced referrals, interrupted engagement, and difficulty maintaining workforce capacity. This is particularly challenging for small allied health practices like us and independent providers that rely on consistent participant demand and predictable funding approvals. When reforms are introduced before replacement systems are clearly understood, uncertainty can spread quickly across the sector.
At Cas Health, we regularly see how even small changes to supports can impact safety at home, independence, and caregiver stress.
(Source: Prime Minister of Australia, “Record funding for public hospitals and disability reform,” 30 January 2026; Department of Health, Disability and Ageing, “Participants are shaping a new way of planning for the NDIS,” 13 February 2026).
Clinical Considerations and Planning Changes
From a clinical perspective, allied health professionals face additional considerations. The National Disability Insurance Agency (NDIA) has confirmed it is developing a new support needs assessment designed to gather information from participants, families, and carers to create fairer and more consistent budgets. The Australian Government has confirmed that a new NDIS planning framework will begin rolling out from mid-2026 as part of broader reforms to improve consistency and transparency.
While these objectives are positive in principle, they raise important practical questions. A more standardised planning approach may risk overlooking functional complexity. Occupational therapists, in particular, work at the intersection of disability, safety, daily function, home environments, and community participation. Their assessments often capture risks and needs that are not immediately visible in brief conversations or simplified evaluation tools. If future planning systems place less emphasis on detailed allied health evidence, there is a risk that complex or fluctuating conditions may be underestimated. Although this is not a confirmed outcome, it is a reasonable concern given the direction of current reforms.
In this evolving context, the role of clear, functional documentation becomes even more critical. Occupational therapists will need to provide detailed evidence demonstrating how impairments affect daily living, safety, caregiver demands, and participation in home and community settings. As the NDIS environment becomes more structured and tightly managed, general or vague recommendations may carry less influence. Strong, evidence-based reports that clearly link support needs to real-world outcomes will be essential in maintaining appropriate levels of funding and care.
Key Dates and What to Watch Next
The next key milestone is the Federal Budget scheduled for 12 May 2026. Until further details are released, the most accurate understanding is as follows: the government has confirmed its intention to moderate cost growth, outlined the rollout timeline for Thriving Kids, and begun testing a new planning framework. However, it has not yet provided detailed information on how these changes will affect individual participants, provider operations, or therapy funding levels.
A Sector Entering Significant Reform
What matters most in all of this is the real impact on people’s lives. Behind every reform, funding discussion, or policy change are participants, families, carers, and providers trying to plan ahead with confidence. For many, uncertainty does not just create frustration. It can affect access to therapy, safety at home, daily routines, and the support people rely on to live well.
As occupational therapists, this is why our role remains so important. At Cas Health, we see how the right supports can protect independence, function, participation, and quality of life. As the NDIS continues to evolve, clear communication, strong clinical evidence, and proactive planning will be essential in helping participants navigate change and continue receiving the support they need.
What You Can Do Right Now
While details are still emerging, there are practical steps participants, families, and providers can take now. Reviewing current supports, ensuring assessments and reports are up to date, and planning ahead for future reviews can help reduce risk during this transition. To learn more, you can also explore our related blog on how to prepare for NDIS changes and ensure supports remain aligned with your needs.
Reference and sources:
- https://newshub.medianet.com.au/2026/04/new-report-four-budget-measures-to-trump-proof-australia-and-protect-us-from-ongoing-energy-chaos/147432/
- https://www.health.gov.au/our-work/thriving-kids
- https://www.health.gov.au/ministers/senator-the-hon-jenny-mcallister/media/participants-are-shaping-a-new-way-of-planning-for-the-ndis?language=en
- https://www.ndis.gov.au/news/10926-developing-new-support-needs-assessment
- https://www.pm.gov.au/media/record-funding-public-hospitals-and-disability-reform
