Introduction
Navigating budget cuts and NDIS Savings: The National Disability Insurance Scheme (NDIS) remains one of Australia’s most important social initiatives. Managed by the National Disability Insurance Agency (NDIA), it provides vital disability services and supports to help people with disability live independently and participate in their communities.
The NDIS operates within the broader disability policy landscape, which includes government frameworks, funding mechanisms, and support services designed to address the evolving needs of Australians with disabilities.
However, as NDIS costs continue to rise beyond what was originally expected, the federal government has begun reviewing budget cuts and NDIS savings to ensure the scheme remains sustainable and fair for all disabled Australians.
According to the NDIS Review Final Report, the focus of these reforms is not on reducing essential supports but on strengthening governance, improving efficiency, and ensuring every dollar value of NDIS funding delivers genuine impact.
Why the Federal Government Is Talking About NDIS Savings
The federal budget for 2024–25 highlights that total NDIS spending is rising faster than projected. To maintain sustainability, the Albanese Government and National Disability Insurance Agency are reviewing how to control growth while maintaining quality supports, with labor efforts focused on implementing necessary reforms and managing the scheme effectively.
This process involves collaboration between the federal government, state and territory governments, and Disability Australia to create a funding deal that keeps the program fair and accessible.
The goal of these budget cuts is to improve the budget setting process, reduce waste, and introduce greater accountability across all disability services. There is also potential for further savings through additional reforms and efficiency measures, ensuring essential services are not compromised.
Areas of focus include:
- Strengthening oversight of NDIS funding allocations
- Expanding foundational supports for people not eligible for individual NDIS plans
- Reducing fraud and non-compliance
- Encouraging early intervention requirements for children and young people
You can read more about reforms on the NDIS Reforms page.
The Role of the New National Disability Agreement
The new National Disability Agreement (NDA) is one of the most important parts of the government’s effort to rebalance disability services. It is designed to fund foundational supports for people who may not qualify for an individual NDIS package but still require help to live and participate in their communities.
The agreement may require ‘new money’—additional funding allocated specifically for foundational supports outside the existing NDIS scheme.
These foundational supports will be jointly managed by the federal government and state and territory governments. They will provide targeted foundational supports for people with disability with lower or moderate needs, especially those with psychosocial disability.
Examples include:
- Community participation programs
- Therapy supports and occupational therapy for children and adults
- Assistance with navigating mainstream services
- Training and education for families and carers
Read more about the new National Disability Agreement at the Department of Social Services website.
Rebalancing Disability Services Across Australia
One of the central goals of the Albanese Government is to rebalance disability services across Australia. This will ensure that minimal mainstream services are no longer relied on to fill service gaps.
By establishing a strong tier of foundational supports, the government aims to facilitate cooperation between state and territory governments, ensuring funding and services are allocated fairly. The new approach is designed to offer a wider range of supports and services, better meeting the diverse needs of individuals.
This new approach also supports the work of Disability Australia, which advocates for better access, equality, and inclusion within the disability community.
Learn more about how these reforms impact service delivery from Disability Australia.
NDIS Funding and Accountability
While the federal government has committed more money to the National Disability Insurance Scheme, it has also set firmer boundaries on how funding can be spent. The Productivity Commission and the Grattan Institute have both called for greater accountability in the NDIS funding process.
The National Disability Insurance Agency is working to:
- Improve how plans are created and monitored
- Ensure funding is allocated fairly and based on outcomes
- Review eligibility criteria for high-cost supports
- Increase transparency for participants and providers
You can learn more about the NDIS budget and spending at the NDIS Budget and Funding Information page.
The Economic Benefits of a Sustainable NDIS
Although NDIS costs have increased, the economic benefits are clear. According to the Productivity Commission, a sustainable National Disability Insurance Scheme drives growth, supports employment, and empowers people with disability to live independently.
By ensuring NDIS spending is efficient and well-targeted, the government can continue to fund disability-specific supports while investing in foundational supports that benefit the broader community.
Every financial year, billions are invested in the NDIS, improving education, employment, and community participation outcomes for people with disability.
The New Focus on Foundational Supports
The new scheme introduces targeted foundational supports for individuals who need help but do not meet NDIS eligibility. This includes early intervention requirements, community-based therapy, and programs to build independence.
Sam Bennett has emphasized the importance of early intervention and foundational supports for children, particularly those with developmental delays or autism, highlighting the need to protect vulnerable youth within the disability support framework.
This marks a shift away from relying on minimal mainstream services and toward a comprehensive support model that serves hundreds of thousands of Australians.
The federal government and territory governments will fund foundational supports to ensure consistency and fairness.
Eligibility Criteria and Early Intervention Requirements
Recent years have seen significant changes to the National Disability Insurance Scheme (NDIS), with a renewed focus on rebalancing disability services and ensuring the scheme’s long-term sustainability. A central part of these reforms involves clarifying eligibility criteria and rethinking the role of early intervention requirements.
The Grattan Institute has recommended establishing firmer boundaries for the NDIS by tightening eligibility to focus on people with a permanent impairment. This means that, rather than providing early intervention supports within individual NDIS packages, the scheme would shift children and others with less severe or temporary needs to foundational supports outside the NDIS. These targeted foundational supports are designed to ensure that funding is allocated fairly and consistently, while still offering appropriate supports to those who need them.
Concerns From the Disability Community
The disability community has raised concerns about how budget cuts and NDIS savings might affect those with little support outside the scheme.
The Royal Commission into Violence, Abuse, Neglect and Exploitation of People with Disability urged the government to maintain essential supports and services for the most vulnerable.
You can read the final report from the Royal Commission into Disability.
The Albanese Government has reassured participants that appropriate supports will remain available, with changes designed to improve fairness and ensure funding reaches those most in need.
NDIS Rule Changes and What They Mean
The NDIS rule changes will bring significant changes to how plans, eligibility, and funding are managed. During the same period that the scheme’s growth—especially in support for children—has outpaced original projections, these changes aim to address evolving needs. Participants can expect:
- Updates to eligibility criteria and review processes
- Better coordination between NDIS funding and foundational supports
- New methods for assessing the value of supports
- Improved communication between the NDIA and participants
These adjustments will help prevent unnecessary costs and promote smarter, more transparent spending.
The Role of National Cabinet and Cooperation
The National Cabinet—including the federal, state, and territory governments—plays a crucial role in finalising the national agreement for NDIS reforms.
This process ensures that the budget, plans, and services are harmonised nationwide. It also helps maintain a balance between NDIS spending and foundational supports while supporting long-term economic benefits for people with disability.
Grattan Institute Report: Key Insights and Implications
The Grattan Institute report offers a comprehensive roadmap for reforming the National Disability Insurance Scheme (NDIS), with the goal of making the scheme more effective, accountable, and sustainable for the future. One of the report’s central recommendations is the creation of a strong tier of foundational supports, funded from the existing NDIS budget, to provide appropriate supports for people who do not qualify for individual NDIS packages.
How Re.Connect Support Services Can Help
At Re.Connect Support Services, we know that the evolving NDIS reforms, budget reviews, and funding changes can be confusing. Our experienced team helps people with disability understand how budget cuts and NDIS savings might affect their NDIS plans, ensuring you stay informed and confident.
We assist with:
- Navigating NDIS rule changes and eligibility criteria for living
- Preparing for plan reviews and budget adjustments
- Identifying alternative supports under the new scheme
- Connecting with trusted disability services and community programs
Our mission is to help participants access appropriate supports, make informed choices, and thrive within the changing National Disability Insurance Scheme.
Learn more at Re.Connect Support Services.
Final Thoughts
The discussion around budget cuts and NDIS savings is about ensuring the National Disability Insurance Scheme remains fair, transparent, and sustainable. By strengthening cooperation between state and territory governments, improving the budget setting process, and expanding foundational supports, the government aims to build a system that benefits everyone.
With continued advocacy from Disability Australia and the ongoing work of organisations like Re.Connect Support Services, the future of disability support in Australia can remain inclusive, accountable, and empowering for all.
