What the 2026-27 NDIS reforms could mean for you

You may have heard about more changes coming to the National Disability Insurance Scheme (NDIS). We know this can create uncertainty, and we’re here to explain what’s happening and what it could mean for you. 

The NDIS Amendment (Securing the NDIS for Future Generations) Act 2026 has now become law. The changes will not all happen at once. Some will begin soon, while others will be introduced gradually as detailed rules and processes are developed. You should continue using your current plan and supports unless the NDIA tells you something is changing. 

So, what is changing?

Changes to social and community participation budgets 

From 1 October 2026, funding allocations for some social, civic and community participation supports will be reduced by 50 per cent. Funding allocations for capacity-building daily activities will be reduced by 10 per cent. 

These changes will be introduced progressively when plans are reassessed or renewed. The change to a participant’s actual spending may be different because not everyone currently uses their full budget allocation. 

What does this mean for you? 

Any funding adjustment would generally occur when a plan is reassessed or renewed. It would not affect every participant or every type of support in the same way. 

The reductions will not apply to critical supports, including support at home, employment supports, disability-related health supports, Specialist Disability Accommodation, home and vehicle modifications, personal mobility equipment, transport and some consumables. 

New planning arrangements 

From 1 April 2027, the Government plans to gradually move participants aged 16 and over to new framework plans.  

As part of the new process, you would meet with an assessor and talk about your daily life, what matters to you, and the support you need. The National Disability Insurance Agency (NDIA) would then use this information and a new budget method to create your plan. You would also receive a report explaining how your budget was developed. 

What does this mean for you? 

Your new plan will have a new budget, and unused funding from your previous plan will not carry over. Continue using your funding only for supports you need. You do not need to spend unused funding simply because your plan is approaching its end date. 

At Northcott, we can support you to get the most out of your funding, so you continue to get the supports and services that matter to you. 

Asking for a plan reassessment

New rules clarify when you can ask for your plan to be reassessed before its scheduled reassessment date.  

What does this mean for you? 

You will be able to make a request if there has been a significant and ongoing change to your functional capacity, support needs, living arrangements, education, work or informal supports. The change does not have to be unexpected. If the NDIA does not decide within 90 days, the request will be treated as refused, allowing you to use the available review process. If the NDIA treats the request as refused, you can ask for that decision to be reviewed. 

Access and eligibility

From 1 January 2028, a new access process is expected to place greater emphasis on how a disability affects a person’s functional capacity and everyday activities. During the assessment, people will still be able to use ordinary aids such as glasses, hearing aids or walking sticks. Children will also be able to receive age-appropriate assistance.  

Existing participants will also begin to be reassessed against the new access criteria. This will happen progressively over three years, and participants will be given information before their reassessment. 

Separate arrangements apply where a person’s impairment results from a work-related injury or motor vehicle accident. 

The NDIA would also look more consistently at whether your disability is permanent, whether suitable treatment could make a difference, and whether the NDIS or another service system is best placed to provide the support. 

The law does not force anyone to undergo a particular treatment. However, when deciding whether an impairment is permanent, the NDIA may consider whether appropriate treatment has been undertaken and whether another treatment is likely to make a meaningful difference. 

Changes for children 

Thriving Kids is being developed for children aged eight and under with developmental delay or autism who have low to moderate support needs. The program is expected to begin rolling out from 1 October 2026, but changes to NDIS access for new applicants will not begin until 1 January 2028. 

What does this mean for you? 

For parents, the main change is that some young children may receive support through Thriving Kids instead of the NDIS. But you don’t need to change your child’s current supports or plan at this stage. 

Children with permanent and significant disability, including children with high support needs, would continue to be considered for the NDIS under the usual access process. 

Stronger provider safeguards 

Mandatory registration is being expanded for providers delivering higher risk supports. The rollout has started with Supported Independent Living (SIL) and platform providers.

From July 2027, it’s planned to expand to areas such as personal care, daily living support and support delivered in closed settings.  

These changes are about improving provider accountability, safety for participants, and the quality of supports and services. 

The new laws also strengthen action against fraud and poor provider behaviour. They prohibit exploitative kickbacks and inducements, introduce stronger penalties for deception and false claims, improve whistleblower protections, and strengthen powers to stop misleading or unethical promotion. 

What does this mean for you? 

Northcott is a registered NDIS provider and is required to meet applicable NDIS registration, quality and safeguarding requirements. We continue to monitor the reforms and prepare for any new obligations affecting our services. 

We’re here for you

We’re here for you 

You do not need to make immediate changes to your current supports or plan unless the NDIA contacts you. Different reforms will begin at different times, and further rules and guidance are still being developed. 

Northcott is monitoring the reforms closely. As more information is confirmed, we will explain what is changing and support customers to understand any effect on their plans or services. 

If you have questions, call us on 1800 818 286. We can talk through your current supports and help you identify where to seek further information or advice.