State and territory disability ministers have raised serious concerns about the Albanese government's proposed overhaul of the National Disability Insurance Scheme (NDIS), warning that they cannot provide "like-for-like services" for more than 200,000 participants expected to be removed from the scheme by 2031.
Joint Submission Highlights Risks
In a joint submission to the NDIS inquiry, states and territories agreed that curbing the scheme's growth is important, but emphasized that this goal should not come at the expense of participant safety, wellbeing, and life outcomes. The submission warned of a "significant risk that people with disability will end up in hospitals or other settings that are inappropriate and unable to meet their needs, or have no access to services at all."
Concerns Over Lack of Consultation
Disability ministers stated they were not "meaningfully consulted" on the proposed changes and expressed concern about unilateral powers given to the federal NDIS minister, which they said signals a shift away from shared governance. The legislation, currently being scrutinized by a Labor-led Senate committee, aims to reduce the scheme's growth from $50 billion per year by cutting budgets and limiting access from 2028.
Impact of Eligibility Changes
Department modeling shows that more than 240,000 participants could be shifted off the NDIS in the four years after new eligibility rules are introduced in 2028. The submission criticized the lack of "clearly defined alternative supports," warning of unmet need and cost-shifting to state and territory systems such as health, education, and justice, which are not equipped for increased demand.
"Without a careful, coordinated approach that aligns these changes with broader improvements across the disability support system, there is a significant risk that people with disability will end up in hospitals or other settings that are inappropriate," the submission stated. "States and territories are not in a position, and have made no agreement, to deliver like-for-like services to people who are exited from the NDIS."
Broader Concerns and Political Response
The Senate inquiry has also heard that planned 50% cuts to social and community participation budgets would increase isolation, segregation, and create "unsafe situations" for NDIS participants. Federal Health Minister Mark Butler declined to comment on whether the government would reconsider the scale of the cuts, stating that the plan was well-developed and aimed at securing the NDIS for the long term while keeping people with disability at its center. Butler dismissed the need to extend the Senate inquiry, reaffirming his hope to pass the legislation before parliament rises for the winter break on July 2.
