Key Takeaways
- NDIS eligibility changes are moving access away from diagnosis lists and toward functional capacity, daily impact, and supporting evidence.
- From 1 January 2028, prospective participants will face new eligibility criteria, with children aged 8 and under assessed under the new approach.
- From 1 October 2026, social and community participation budgets and some capacity building supports will be reset closer to 2023 levels.
- Existing participants will not lose access overnight, but participant plans may change through reassessments, plan variations, and new plan rules.
- Re.Connect Support Services can support participants with evidence, reviews, community participation options, and practical support coordination.
Introduction: Why NDIS Eligibility Is Changing Now
The national disability insurance scheme was originally intended to support around 410,000 people. By late 2025, it had more than 760,000 ndis participants, creating major budget pressure. The Australian government plans to reduce the number of participants in the NDIS from approximately 760,000 to 600,000 by the end of the decade, as part of a strategy to ensure the scheme’s financial sustainability.
The changes to the ndis are linked to the ndis review, Royal Commission findings, and new legislation under the ndis act. The NDIS is projected to cost $55 billion by 2030, down from a forecast of $70 billion, as the government implements cost-saving measures to stabilize the scheme’s financial sustainability. This article explains ndis eligibility, plan impacts, social and community participation, and how Re.Connect Support Services can help.
From Diagnosis to Functional Capacity: How Eligibility Tests Are Being Overhauled
Access to the NDIS will shift from diagnosis-based lists to the assessment process for a person’s functional capacity. A new eligibility test will focus on a person’s ‘functional capacity’ rather than medical diagnosis, assessing their ability to perform activities without assistance or modifications, including without assistive technology.
NDIS eligibility requires proving a significant reduction in functional capacity, so a medical diagnosis alone will not guarantee access. Eligibility for the NDIS requires proving severe day-to-day functional impact, making it harder for those with moderate support needs to gain entry.
The government is establishing a technical advisory group to provide expert advice on appropriate thresholds and assessments for assessing eligibility based on functional capacity, which will influence provider registration standards and interact with broader NDIS policy updates in 2024. Tools such as I-CAN or similar measures may be used to assess communication, learning, mobility, self-care, self-management, and day to day living.
This is especially important for autism, ADHD, psychosocial disability, developmental delay, and fluctuating conditions. Re.Connect Support Services can help organise school reports, allied health reports, behaviour plans, and other supporting evidence.
A Tighter Definition of “Permanent” Disability and Treatment Requirements
The definition of ‘permanent’ disability will be tightened, requiring that an impairment is only considered permanent if further treatment is unlikely to materially improve or alleviate its impact. Applicants may need to show therapy, medication, rehabilitation, or other commonly available treatments have been tried, or cannot reasonably be accessed.
To qualify for the NDIS, applicants must be Australian citizens or permanent residents, under age 65, with a significant disability limiting daily tasks. Applicants for the NDIS must meet foundational criteria regarding age, residency, and a permanent significant disability that limits daily functioning.
For example, a person with chronic pain may be asked for evidence of physiotherapy, pain management, or specialist advice. A person with mental health disability may need to show treatment history and ongoing functional impact.
Tip: Re.Connect Support Services can help participants and referrers summarise treatment history clearly for the national disability insurance agency.
Participation Targets and the Push to Reduce NDIS Numbers by 2030
The government aims to cut costs by changing eligibility requirements, making it harder for some current participants to meet the new criteria, which will focus on functional capacity rather than medical diagnoses.
The NDIS categorizes applicants into pathways, such as Disability Requirement or Early Intervention, limiting funding to specific impairments. That means supports provided must connect to the impairment accepted by the NDIA, not every diagnosis a person has.
The NDIS will introduce mandatory eligibility reassessments at specific life stages for current participants as new standards roll out. Current participants should treat reviews as important evidence moments, not routine paperwork.
People who do not access the ndis may be directed to mainstream services, state programs, local community supports, and the inclusive communities fund, while others may seek help from providers recruiting experienced disability support workers and carers.
Changes to Social and Community Participation Funding
Funding for social and community participation supports is set to be reduced, with the average spend expected to drop from $31,000 to $26,000, which will significantly impact participants’ access to these services.
From 1 October 2026, budgets for social, civic, and community participation supports will be reset to align with 2023 spending levels, which may impact the availability of individual plans for participants. From 1 October 2026, budgets for social, civic, and community participation supports will be reset to align with 2023 spending levels, which will reduce the average spend on this category from $31,000 to approximately $26,000.
This may feel like cut funding where someone previously used community participation funding for outings, classes, sport, support workers, or group activities. As part of the NDIS changes, certain support budgets related to social, civic, and community participation are scheduled to be adapted.
The government acknowledges that social and community participation supports have not always improved inclusion or capacity for participants, leading to a reassessment of funding levels and approaches. The government plans to establish a $200 million Inclusive Communities Fund to support community organizations in providing genuine participation activities for people with disabilities, partially replacing cuts to individual plans and changing how community connection and engagement supports are accessed. The government plans to establish a $200 million Inclusive Communities Fund to support community organizations in providing genuine participation activities for people with disabilities.
Capacity Building Supports: Where Funding Pressures Will Be Felt
Capacity building supports include independence training, social skills, therapy, employment preparation, and learning daily routines, sitting alongside NDIS Core Supports for daily living and participation. From 30 June 2025, many Disability-Related Health Supports move into capacity building, which may affect therapy budgets for physiotherapy, psychology, speech pathology, and dietetics.
NDIS funds are released in structured 3-month blocks to prevent early plan exhaustion, and the Minister has powers to cap funding across categories. The government is implementing stricter plan management systems, reducing spending in areas like social and community participation.
This makes goal-setting important and increases the need for effective NDIS funding management strategies. Re.Connect Support Services can work with plan managers, allied health professionals, and families to prioritise reasonable and necessary supports in an ndis plan.
Timeline: When the Major NDIS Eligibility and Plan Changes Take Effect
Key dates matter. On 3 October 2024, legislative changes clarified ndis support and stated supports. On 30 June 2025, health-related supports shifted toward capacity building. From mid-2026, the technical advisory group begins shaping thresholds. From 1 October 2026, social and community participation resets begin.
From January 1, 2028, children aged 8 and under applying for NDIS support will be assessed against new eligibility criteria based on functional capacity, while those already receiving support will continue under existing criteria until they turn 9. By 2030, the labor government wants participation closer to 600,000.
Framework planning, digital payments, provider registration, and mandatory registration will not all change eligibility rules directly, but they will affect how quickly budgets are used and which ndis providers can deliver quality services.
What These Changes Mean for Your Existing NDIS Plan
Existing participants are not automatically removed. But individual plans may become more stated, less flexible, and more closely tied to eligibility criteria, ndis rules, and reasonable and necessary supports.
Unscheduled plan reassessments will be more controlled. Participants should keep invoices, progress notes, therapy reports, and evidence for at least three years. Supports should clearly link to goals, disability impact, support needs, and daily living supports.
Re.Connect Support Services can review an existing ndis plan, identify risks such as high community participation spending, and help prepare for a new plan or plan variations so participants can still pursue Improved Life Choices outcomes under the NDIS.
Impact on Access to the NDIS for Children, Autism, and Developmental Delay
The government is shifting high low-to-moderate support needs for children aged 8 and under away from the NDIS to mainstream support systems, which reshapes how families access specialist NDIS support for children with autism. This means support children may increasingly come through schools, health systems, early childhood services, and community organisations.
For autism or developmental delay, diagnosis alone will not be enough. Families should gather childcare notes, teacher feedback, therapy reports, communication examples, and evidence of behaviour, routines, learning, and personal care needs, particularly where a child has psychosocial or mental health-related needs.
Re.Connect Support Services can help families understand access to the ndis, non-NDIS early intervention, and local pathways.
Fraud Controls, Digital Payments, and Provider Registration: Why They Matter to Participants
Health minister mark butler and other ministers have discussed reform themes in settings including the national press club, with fighting fraud and protecting social licence central to the policy agenda. Reports involving the australian criminal intelligence commission have raised concern about misuse of ndis funds, a theme frequently explored in Re.Connect Support Services’ NDIS and disability blog resources.
All NDIS providers must meet their obligations under the NDIS Act and Code of Conduct, regardless of whether they are registered or not, ensuring a baseline of quality and safety in service delivery. Mandatory registration for Supported Independent Living (SIL) providers and platform providers will begin to roll out from July 1, 2026, expanding to all providers delivering higher risk supports by December 2030.
The NDIS Quality and Safeguards Commission will publish a list of NDIS supports considered high risk, such as personal care and daily living supports, which will require providers to be registered to ensure participant safety. This may affect unregistered providers, especially for closed settings and high-risk supports.
How Re.Connect Support Services Can Help You Navigate NDIS Changes
Re.Connect Support Services helps support people through ndis changes with practical support coordination under the NDIS, plan management guidance, evidence preparation, and community connection.
They can help you:
- interpret national disability insurance updates and eligibility requirements, including how disability services promote independence and inclusion
- prepare evidence for reviews, reassessments, and prospective participants
- align supports with functional capacity, support needs, and capacity building outcomes
- find inclusive programs through community organisations and the local community that align with mental health recovery and community participation supports
- rebuild capability where ndis funds or community participation funding are reduced, including access to specialist NDIS mental health support and recovery coaching
If you are worried about ndis eligibility changes, contact Re.Connect Support Services early rather than waiting for a review letter to explore their broader personalised care and aged care support options.
FAQs about NDIS Eligibility Changes
Will I lose my NDIS plan when the new eligibility rules start in 2028?
No automatic cancellation happens on 1 January 2028. Existing participants will generally experience significant changes through reviews, reassessments, and life-stage checks.
If evidence still shows substantial functional impact, support may continue. If evidence is weak or needs have changed, eligibility may be questioned.
How do I prove “functional capacity” to access or stay on the NDIS?
Use real examples: dressing, eating, moving safely, communicating, learning, handling money, social interaction, and joining the community, including where in-home care and daily living assistance are required.
Reports from occupational therapists, psychologists, physiotherapists, teachers, employers, and carers can show what happens without support and can also guide healing and recovery-focused NDIS services.
What can I do if my community participation funding is cut at my next review?
Ask for reasons, compare the decision with your goals, and check review timeframes. Look at council programs, the inclusive communities fund, and mainstream community participation options.
Re.Connect Support Services can help map alternatives, work with an NDIS support coordinator, and support review preparation.
How will these changes affect children with autism or developmental delay?
Access will depend more on functional impact than diagnosis. Evidence from home, childcare, school, and therapy will matter.
Families should prepare early, especially where support needs fluctuate or where long-term supported independent living arrangements may be needed as children grow up.
Where can I get reliable updates about future NDIS changes?
Check official NDIS updates, Department information on securing the NDIS, and reputable disability community organisations.
Re.Connect Support Services also monitors updates and translates policy into practical next steps through their personalised NDIS support services.
