NDIS Overhaul 2026: What the Major Cuts Mean for Participants and Families

The National Disability Insurance Scheme (NDIS) is facing its biggest shake-up since it launched over a decade ago. With the federal government pushing through sweeping reforms, Treasury modelling projects that 240,000 current participants will exit the scheme and a further 110,000 people will be diverted from entering by 2031. The goal? Saving $35 billion over ten years. But for the hundreds of thousands of Australians who rely on the NDIS, the question isn't about budget bottom lines — it's about what happens to their support.

[object Object] If you or a family member are navigating these changes, you're not alone. NDIS Finder is here to help you understand what's happening, what it means for your plan, and how to find the support you need.

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The Scale of the Cuts

Let's break down the numbers. The government's own projections show: [object Object]

• 240,000 participants will be removed from the NDIS over four years
• 110,000 more people will be diverted from entering the scheme by 2031 [object Object]
• $38.1 billion in savings are targeted over the next decade

Of those savings, around 60% come from cutting therapy and participation budgets and tightening eligibility through a new functional capacity test. Only $0.9 billion is attributed to anti-fraud measures — something the Greens have seized on, accusing the government of misleading the public about the true nature of the cuts. [object Object]

State and Territory Ministers Push Back

The reforms haven't gone unnoticed by state and territory governments. Disability ministers from across Australia issued a joint submission warning that the pace of change risks leaving people with disability without essential services. They described the cuts as "beyond and contrasted with" previous agreements, signalling a breakdown in the cooperative federal-state model that the NDIS was built on. [object Object]

The core concern is that alternative 'foundational supports' — the services that are supposed to replace the NDIS for those who exit — haven't yet been built. States say they're being asked to take on responsibility without adequate funding or infrastructure in place.

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The Thriving Kids Model

One of the most significant changes is the Thriving Kids model, which aims to divert children under 9 with low-to-moderate needs off the NDIS entirely. The first phase is set to begin in October 2026. While the government frames this as providing more appropriate, community-based support for children with milder disabilities, advocates worry it's another way to shrink the scheme without a proper safety net in place.

[object Object] For families with young children currently on the NDIS or considering applying, this is a major development to watch closely.

The Human Cost

[object Object] Behind the policy debates and budget projections is a stark human reality. The Senate inquiry into the NDIS reforms has received over 4,000 submissions — an overwhelming response that speaks to the depth of concern in the disability community.

Participants and advocates report: [object Object]

• Exhaustion and anxiety from constantly having to fight to maintain support
• Depression and suicidal ideation linked to the uncertainty around funding [object Object]
• Overwhelming stress from navigating a complex, ever-changing system

One advocate described the current climate as creating a "mental health emergency" within the disability community. For many, the NDIS isn't just a funding scheme — it's the difference between being able to participate in society and being isolated at home. [object Object]

What's Happening Next

The government is pushing to pass legislation before the winter parliamentary break. The Senate inquiry report is due imminently, and the government faces opposition from both the Coalition and the Greens, though for different reasons. [object Object]

The key dates to watch:

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• Imminent — Senate inquiry report released
• Before winter break — Legislation attempted to be passed
• October 2026 — Thriving Kids model phase one begins [object Object]

Staying Informed and Finding Support

These are uncertain times for NDIS participants and their families. But uncertainty doesn't mean you have to navigate it alone. NDIS Finder is a free resource to help you find registered NDIS service providers, access guides and support, and stay up to date with changes that affect you. [object Object]

Whether you're looking for a new therapist, need help understanding your plan, or want to connect with providers who get what you're going through — we're here to help.

[object Object] Keywords: [NDIS overhaul 2026, NDIS cuts explained, NDIS plan changes]