Concerns about NDIS eligibility criteria and funding decisions

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PWDA Template: Submission to the

Attention: Committee Secretary, Senate Standing Committee on Community Affairs

Submitted by email: community.affairs.sen@aph.gov.au

Date: 28 May 2026

I welcome the opportunity to make a submission to the Senate Standing Committee on Community Affairs about the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026.

I am a NDIS provider and advocate for people with disability.

I want to outline the harm this Amendment Bill will cause if it passes Parliament. This Bill is too far-reaching to pass as it stands. I believe the Bill requires further scrutiny and amendment before it proceeds.

Parliamentary Scrutiny and Transparency

The consultation period for the Amendment Bill is two weeks, which is insufficient to allow for appropriate consultation, considering accessibility and communication needs. The Australian Government Guide to Policy Impact Analysis says consultation should occur for a minimum of 30 days where possible.

As a disability service provider, I know that meaningful consultation with people with

disability requires time, accessible information and supported decision-making. A two-week consultation period is inadequate for participants, families, carers and service providers to properly understand the proposed changes, seek advice and provide informed feedback on reforms that will significantly affect their lives.

Recommendation: Amend the consultation period for a best practice minimum of 30 days.

Key decisions left to ministerial instruments, not law

The issue: The Bill allows Ministers to change who gets NDIS support (Schedule 1 Parts 8 and 9) and how much funding people receive (Schedule 1 Part 4; Schedule 3) by signing an instrument, without going back to Parliament. The rules that will determine critical eligibility thresholds (Schedule 1 Parts 1, 8 and 9) have not yet been written.

How this affects participants: The decisions that shape the lives of participants, whether they qualify for the NDIS and what supports they can access, could be changed without parliamentary debate or public scrutiny. Participants may not know supports or eligibility rules have changed until their plan is affected.

As someone supporting people with disability and their families, I am concerned that major eligibility and funding decisions could be changed without proper parliamentary scrutiny or meaningful consultation. Increased uncertainty around eligibility and supports creates stress for participants and undermines confidence in the Scheme.

Recommendation: Require that all decisions affecting NDIS eligibility and funding levels be made through primary legislation subject to full parliamentary scrutiny, with mandatory advance notice to affected participants before any changes take effect.

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Existing participants face narrower criteria and fewer rights to

challenge decisions

The issue: The Bill changes the rules for existing NDIS participants and makes it harder to challenge some decisions about supports and funding. It also restricts when you can request a reassessment, removes review rights for automatic plan renewals, and makes funding reductions unreviewable (Schedule 1 Parts 1 and 8). Combined with restrictions on reassessment requests (Part 2), automatic plan renewals without review rights (Part 5), and unreviewable funding reductions (Part 4), existing participants face narrower criteria with significantly fewer avenues to challenge decisions about their supports.

How this affects participants: This does not protect participants already on the NDIS, who could be reassessed under stricter rules. If someone’s funding is reduced or their plan renewed automatically, they may have limited or no ability to challenge that decision. This could make it harder for people to get extra support when their circumstances or disability change.

As a disability service provider, I regularly support participants whose needs change due to health, mental health, housing, employment or family circumstances. Restricting review rights and reassessments may leave participants without access to essential supports when their circumstances change, increasing risk, stress and long-term costs.

Recommendation: Require a “no harm” safeguard ensuring no current participant loses access to supports unless equivalent supports are in place, with independent review rights before any exit decision and access to unscheduled reassessments preserved.

Unreviewable ministerial power to cut funding across all

support categories

The Minister can reduce funding for any support or group of supports by a specified percentage through an instrument that cannot be challenged (Schedule 1 Part 4). This applies across all budget categories. Unspent funds will no longer carry over at plan renewal (Schedule 1 Part 5).

How this affects participants:

A participant’s community participation, capacity building or assistive technology funding could be cut without warning and without any right to appeal. Participants who save unspent funds across plan periods for high-cost items will lose that ability entirely.

Many participants carefully use and save funding to achieve long-term goals such as assistive technology, employment outcomes, skill development and greater independence. Funding reductions without review rights would create uncertainty and undermine participants’ ability to plan for their future with confidence.

Recommendation:

Require that unspent funds carry over at plan renewal for participants saving for high-cost items and require independent review rights before any funding reduction takes effect.

Requirement to exhaust treatment options before eligibility

The issue:

A person with disability will need to exhaust treatment options before they can be eligible for the Scheme (Schedule 1 Part 8). There will also be a removal of whole-of-person assessment, replaced by single eligible impairment consideration (Schedule 1 Part 3). The note that previously acknowledged environmental factors and other ineligible impairments could affect support needs will be removed (Schedule 1 Part 3).

How this affects participants:

People with disability will need to prove their impairment cannot be treated before they access the NDIS. Once in the scheme,

Unvalidated Functional Capacity Assessment Tool Risks Misidentifying Need

The Issue:

The Bill shifts assessment from whole-of-person consideration to a single eligible impairment (Schedule 1 Part 3). Read together with the eligibility thresholds in Parts 8 and 9, the tool used to conduct functional capacity assessments must be capable of sufficiently identifying whether a person meets the threshold for that single impairment.

How This Affects Participants:

If the assessment tool does not accurately capture the full extent of a person’s disability, including needs that fluctuate or vary over time,

a participant may be found ineligible or have their supports undercounted, with no

guarantee the result reflects their actual experience.

Many of the people we support have complex, fluctuating or multiple disabilities that cannot be accurately captured through a single assessment or snapshot in time. Assessment processes must recognise the whole person and accurately reflect the impact of disability on daily life, participation and independence.

Recommendation: Do not proceed with I-CAN as the functional capacity assessment tool unless it has been demonstrably validated to identify the needs of all people with disability, including those with episodic or fluctuating disability, and demonstrated to be culturally appropriate for First Peoples with disability.

Supports cut before replacement system is ready

The issue: From 1 October 2026, the government has announced funding for social, civic and community participation supports will be cut by 50 per cent and capacity building daily activities by 10 per cent for all participants, reductions that will be implemented through the ministerial instrument power in Schedule 1 Part 4. The Foundational Supports system intended to fill that gap has no confirmed implementation date and is not yet operational.

How this affects participants: Supports that help participants connect with their community, build skills and maintain independence may be cut before anything exists to replace them, leaving carers and families with greater responsibilities and no additional support. These supports are often what help people stay visible, connected and safe.

Community participation and capacity-building supports are often the foundation for social inclusion, employment pathways, skill development and improved wellbeing. Reducing these supports before Foundational Supports are fully operational risks increasing isolation, reducing opportunities and placing additional pressure on families, carers and community organisations.

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Recommendation: Require that no reductions to community participation or capacity building supports take effect until Foundational Supports are fully operational, adequately funded and demonstrably able to meet the needs of those who will lose NDIS supports.