Update on proposed NDIS legislation that has passed the House of Representatives and is expected to be considered by the Senate in August.

We know it’s a confusing time for those already on the NDIS or those thinking of applying or getting a review. Here is another update for you on what amendments the House passed. 

Key points:

  • Proposed funding changes would affect all current NDIS participants by 1 October 2027, regardless of when their current plan ends. The Bill includes proposed reductions to:
    • Social, economic and community participation supports cut by 50%*.
    • Improved daily living 10% cut*.
      • *Employment supports and disability-related health supports are proposed to be excluded from these funding reductions.
  • An independent review of the changes has been added to the legislation, although this is not expected until 2029 to 2030.
  • New safeguards would require the NDIA to make multiple contact attempts before suspending a plan or cancelling participant status.
  • Greater transparency is proposed, including publication of pricing advice and draft automated decision-making rules.

Here are some of the key amendments that passed the House of Representatives last week. In August this will go before the Senate for their changes, and/or vote. Easy read info below thanks to Inclusion Australia:

  1. A review is now required (Section 4): The Bill now has a new section 4. It requires an independent review of how these changes are working once they’re in place. That review has to happen at the same time as the review already built into the Getting the NDIS Back on Track No. 1 Act 2024, and the report has to be tabled in Parliament within 15 sitting days of the Minister receiving it. The review has to look at access to the NDIS, whether people’s supports stayed steady and good quality, appeal rights, whether providers can stay viable, thin markets, and how these changes fit with foundational supports. n.b. Scheduled Act review in 2029/30 as mentioned above
  2. Limits on the Minister’s power to cut funding (Schedule 1, Part 4 — new section 34A): Before, the Minister could make a rule cutting the funding for any “group of supports” by a set percentage. Now the Minister can only cut two kinds of supports: (a) help with social, economic and community participation, and (b) building daily living skills. The Minister can also shield part of a group from the cut by naming it an “excluded subgroup” (section 34A(1C)), and the Bill says excluded subgroups will include employment supports and disability-related health supports. A new formula (section 34A(2A)) sets out how the cut is worked out, leaving the excluded subgroup out of the reduction.
  3. What “trying to contact” someone means before suspending or cancelling a plan (Schedule 1, Part 7 — sections 30 and 40A): Before, the CEO only had to make “reasonable attempts” to contact a participant before suspending their plan (section 40A) or cancelling their participant status (section 30). Now the Bill spells out what that means. The CEO can’t say reasonable attempts were made unless: they tried at least 5 times using the person’s preferred way of being contacted; the last try was at least 3 months but no more than 4 months after the first; and, if the person’s preferred contact isn’t in writing, at least one try was also made in writing. The attempts can be to the participant, their nominee, or another authorised contact. An attempt doesn’t count if the CEO knew that, at the time, the person was in hospital or another institution or was experiencing homelessness.
  4. Two new notes about “appropriate treatment” (Schedule 1, Part 8 — section 25A): The Bill adds two notes to the definition of appropriate treatment. Note 1 says treatment only counts as “regularly undertaken or performed in Australia” if public funding is available for it. Note 2 says appropriate treatment does not include restrictive practices — that is, seclusion, or chemical, mechanical, physical or environmental restraint.
  5. Plan managers who are also providers (Schedule 2, Part 6 — sections 73E and 73F): Before, a plan manager couldn’t be registered if they, or a “related party” of theirs, also provided other NDIS supports, and there were conditions banning shared key staff and banning related parties from providing other supports. Those “related party” rules are now gone. The bar applies only to the plan manager themselves, not their related parties, and the shared-key-personnel condition has been removed. Conflicts of interest are instead handled through the “deed of arrangement” the plan manager has with the Agency (section 73EA).
  6. Pricing advice has to be made public (Schedule 3, Part 1 — section 45C): The Bill adds new subsections 45C(16A) and (16B). When the Agency gives the Minister advice about pricing, it now also has to give a summary. And the Minister has to table that advice (or the summary) in both Houses of Parliament within 5 sitting days of making the pricing decision — which means we get to see it!
  7. Draft automated decision-making rules have to be published first (Schedule 3, Part 2 — new subitem (5A)): The Bill adds a new requirement that, at least 7 days before the CEO makes a “standard operating procedure instrument” (the rules behind automated decisions), the CEO has to publish a copy of the draft on the Agency’s website.
  8. Time limit for making transitional rules (Schedule 5): Before, the Minister had 12 months to make transitional rules. The general limit is now 6 months. The 12-month limit still applies to rules about Part 5 (Plan renewal) and Part 6 (Reasonable and necessary supports) of Schedule 1, and to Schedule 4 (new framework planning).

Have your say

The Senate Committee is accepting submissions on the legislation until 10 July 2026, but you can contact your Senators ahead of the Senate’s consideration of the Bill through August.

Further information

Note: This legislation has passed the House of Representatives but has not yet passed the Senate. Proposed changes may be amended before becoming law.

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