The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 passed parliament last week after substantial amendments were negotiated between Labor and the Coalition. The reforms represent the most significant overhaul of the NDIS since its inception, designed to address the scheme's spiralling costs and ensure its long-term sustainability.
Under the new framework, eligibility will no longer be determined primarily by a person's medical diagnosis. Instead, applicants must demonstrate that their disability "substantially reduces their functional capacity" and that this impairment is permanent. The legislation also permits the use of automated tools to assess eligibility and plan supports-a move that has raised concerns among disability advocates about fairness and transparency.
Senior Lecturer in Public Policy and Politics at UNSW, Georgia van Toorn, notes that while the broad direction is clear, the practical implementation remains uncertain. "We still don't know exactly what the new process will look like," van Toorn said. "Much of the detail has been left to rules, instruments, assessment tools and implementation processes that are still in development."
A technical advisory group has been established to advise the government on the criteria and methods for determining functional capacity thresholds. It is expected to complete much of its work by late 2026 and report to government by March 2027. People already accessing the NDIS will begin to be reassessed against the new criteria from 2028, with the process occurring progressively over three years.
Critics argue the reforms could disproportionately affect people with psychosocial disabilities or those whose conditions fluctuate, as functional capacity assessments may not capture episodic needs. The government, however, contends that a consistent, diagnosis-neutral approach is fairer and more objective.
The Australian Greens and some disability advocacy groups have expressed concern that the tightening of eligibility, combined with the use of automated decision-making, could lead to vulnerable individuals losing vital supports without adequate safeguards. The government has countered that the changes are necessary to protect the scheme for future generations and that detailed rules will be subject to further consultation.
With the key implementation timeline extending to 2028, the coming months will be critical as the technical advisory group hammers out the specifics. The outcome will shape not only the future of the NDIS but the lives of hundreds of thousands of Australians with disability.