Budget 2026
The 2026 Federal Budget and the NDIS
The 2026-27 budget is expected to lock in the funding framework behind the April 2026 NDIS reforms. Here's what participants and providers should watch for — and what it means for your situation.
This page will be updated on budget night
The federal budget is expected in May 2026. We'll update this page with the key NDIS numbers as soon as they're released. Sign up below and we'll email you a summary the moment the NDIS figures are public.
Last updated: 7 May 2026
The context going into this budget
The NDIS cost approximately $42 billion in 2024-25 — far above the original 2013 projections. The scheme was tracking toward $50+ billion per year by 2030 without reform. This cost trajectory is the primary reason the April 2026 announcement happened when it did.
The government's stated goal is to bring NDIS growth back in line with the original 8% annual growth target agreed under the Intergovernmental Agreement. Meeting that target requires both reducing participant numbers and redistributing some current NDIS participants to cheaper state-funded foundational supports.
What the budget needs to fund
Key funding items to watch
NDIS total appropriation
The headline figure — watch whether forward estimates show the cost growth curve bending.
Foundational supports Commonwealth contribution
New money required to fund the support tier below NDIS. States need Commonwealth funding to stand up these programs.
Thriving Kids early intervention transition
Funding for the transition of children under 9 from NDIS ECEI pathways to state-run programs.
Functional capacity assessment tool development
The NDIA needs funding to design, pilot, and roll out the new assessment framework (expected 2028).
NDIS Commission and workforce
Regulatory and oversight funding — important for provider compliance and participant protection during transition.
What this means for participants
Budget night will not change your plan. NDIS plans continue under current rules — no immediate changes happen at budget. What the budget reveals is the pace and scale of transition over the next 3-5 years.
If the foundational support funding is significant — and states commit matching funding — the transition off NDIS for lower-intensity participants is more likely to go smoothly. If the foundational tier is underfunded, participants who are moved off NDIS may face a support gap.
What this means for providers
The budget will signal whether foundational support programs will be funded at a scale that creates genuine business opportunity for providers — or whether they'll be underpowered. Providers serving higher-risk participant cohorts (psychosocial, ADHD, ECEI) should watch the foundational tier allocation closely.
Price guide indexation for 2026-27 will also be confirmed in or around the budget period.
Check your personal exposure now.
The 5-minute check gives you a personalised read on your risk level under the April 2026 reforms — before and after the budget confirms the implementation timeline.
Start the check →Frequently asked
Will the 2026 federal budget cut NDIS funding?
The government has been explicit about wanting to reduce NDIS cost growth — the scheme was projected to cost $50 billion per year by 2030 before the reforms. The April 2026 announcement targets 160,000 participants moving to the foundational support tier, which is partly funded by the Commonwealth and partly by states. The budget will provide the funding envelope for both the NDIS and the new foundational tier.
How much does the NDIS cost and why is it in the budget?
The NDIS costs approximately $42 billion per year and has been one of the fastest-growing items in the Commonwealth budget. The original cost projections significantly underestimated scheme growth. The 2026 reforms — and their budget allocation — are designed to bring cost growth back in line with the original trajectory agreed with states and territories.
Will the foundational support tier be funded in this budget?
The foundational support tier requires new Commonwealth-state funding agreements. The budget is expected to outline the Commonwealth's contribution — but state funding commitments are being negotiated separately. How much foundational support is actually available in each state will depend on those bilateral agreements.
What should I watch for in the budget if I'm on the NDIS?
Key things to look for: the total NDIS appropriation versus the forward estimates, any new eligibility-related legislation attached to the budget, the Commonwealth allocation for foundational supports, and any announcements about the Thriving Kids early intervention transition funding.
Does the budget affect when the NDIS changes take effect?
The timeline for the functional capacity assessment tool (expected 2028) is set independently of the budget cycle. Budget allocations fund the design and rollout of that tool. Budget night announcements may provide updated timelines for implementation.
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Information current as of 7 May 2026. This page will be updated when budget figures are published. General information only — not financial or legal advice. Full disclaimer