Reform explainer
The April 2026 NDIS changes
On 22 April 2026, Minister Mark Butler announced the most significant restructuring of the NDIS since the scheme began. Here's what was actually said, what's still being designed, and what to do next.
The four announced changes
Change 1
Functional capacity assessment becomes the eligibility gateway
From 2028, NDIS eligibility will be determined by a standardised assessment of what someone can and cannot do in everyday life — rather than primarily by diagnosis. Existing participants will be reassessed at normal plan review. Read more →
Change 2
Foundational supports tier created
State and territory governments will run a new layer of supports below the NDIS — for people who no longer qualify but still need help. Most states are still designing their programs. Read more →
Change 3
Community participation spending capped
Total annual spending on social and community participation supports will be capped at 2024 levels. This affects providers and participants in this category most directly.
Change 4
Registered-provider preference
The government has signalled it wants approximately 90% of NDIS payments to flow to registered providers. Phasing and exact mechanism are not yet finalised.
The numbers
~760k
current participants
~600k
projected by 2030
~21%
scheme reduction
How it affects you, in 5 minutes.
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