Matt Thistlethwaite (Kingsford Smith, Australian Labor Party, Assistant Minister for Immigration) Share this | Hansard source

The National Disability Insurance Scheme is a source of pride for Australians. It's the embodiment of the great Australian value of the fair go for all. It was put in place by a Labor government 13 years ago to ensure that people living with disabilities in Australia get access to the best quality care and services to ensure that they can participate freely and actively in society and, most importantly, realise their personal potential in their contribution to their families, their communities and Australia.

The original NDIS was based on a Productivity Commission report that recommended the establishment of an insurance scheme in Australia. That original report also recommended three tiers of support. What we've actually delivered is all three tiers, in some forms or respects, being delivered by the Commonwealth, whereas it was envisaged that the first two tiers would be delivered in a partnership with the states, and the Commonwealth would deliver the third tier. What ended up occurring is that the Commonwealth has been delivering all three tiers, and the scheme has become unsustainable.

The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 gives effect to elements of our plan to restore the NDIS to its original intent of supporting people with permanent and significant disability and to secure the NDIS for future generations. These aren't changes to its purpose but to protect it, to strengthen it and to secure it for future generations who will rely on it long after us. It's changed lives, it's opened doors and it's given people with permanent and significant disability the opportunity to participate fully in their communities. It's one of Australia's most important social programs. It's a national institution built on fairness, dignity and inclusion.

But we also know that the scheme is under real pressure. Costs are rising faster than any other comparable government run program. Too many participants aren't receiving the quality supports that they deserve, and the NDIS, unfortunately, has been a target for shonks and fraudsters who are seeking to exploit vulnerable people and siphon money away from those the scheme was designed to support. The National Disability Insurance Agency's actuary warned that, without change, NDIS spending would blow out by $13 billion over the next four years. Left unchecked, the scheme would not meet the interim eight per cent growth targets for years, let alone the new five to six per cent growth target agreed to by National Cabinet.

Quite simply, the scheme has become unsustainable, and that is why the government is acting now. As the architects of the NDIS, we're determined to act to secure its future, to ensure that it is restored to its original intent, as reflected in that Productivity Commission report. We've already brought growth down from 22 per cent under the previous government to around 10 per cent today. But, even at that level, the scheme is still growing too quickly to remain sustainable. In January 2026, National Cabinet agreed that growth must come down to five to six per cent or lower to protect the scheme for future generations.

Our plan to secure the NDIS rests on four pillars: fighting fraud, slowing rapid cost increases, clearer eligibility requirements and delivering quality services. These pillars guide the legislation that's now before the House. Under this plan, the NDIS will continue to grow every year. It will remain the largest social program in Australia outside the age pension and the centrepiece of the most comprehensive suite of disability supports anywhere in the world. But instead of costing more than $70 billion in 2030, spending is projected to be around $55 billion, a level that keeps the scheme strong and sustainable. The reforms before parliament build on the recommendations of the Independent Review into the NDIS, the disability royal commission and the original Productivity Commission report. All were informed by extensive consultation with people with disability, their families, advocates and service providers. They all point to the same conclusion: the NDIS must return to its original purpose of supporting people with permanent and significant disabilities while ensuring that systems provide other supports where they're designed to deliver those.

A key part of the work is improving access and eligibility. The NDIS review found that the current approach is inconsistent and unfair. Access lists created during the early transition phase have led to decisions based on diagnosis rather than functional capability, and this has allowed people with higher capacity to enter the scheme while others with greater needs have struggled to get consistent decisions. The government's recommending that access lists be removed and that stronger, evidence based assessment processes be introduced. A technical advisory group will advise on thresholds and how we assess a person's ability to do everyday tasks. No change to access will occur before January 2028, which is very important so that people have time to adjust to the changes. Before then, we'll work with the states and territories to ensure that people who are no longer eligible for the NDIS are properly supported outside it through programs run by the states and territories. This includes the development of Foundational Supports, the $6 billion commitment already agreed to by National Cabinet, so that more people can get the right support in the right system.

The reforms also address the rapid growth in participant plans. The bill proposes clearer rules for unscheduled reassessments, measures to reduce planned cost escalation and a reset of budgets for social and community participation. These changes reflect the original intent of the scheme to support genuine inclusion. To rebuild capability in the community, the government will establish a $200 million Inclusive Communities Fund, supporting organisations that create real opportunities for participation.

We're also strengthening the definition of reasonable and necessary supports. Over time, the scope of what the NDIS pays for has expanded beyond what was intended, creating confusion and inconsistency. The reforms will ensure that supports funded by the NDIS are solely related to the impairment for which a person gained access and that the scheme aligns more closely with other social service systems.

Another major focus is market integrity and participant safety. Since 2022, the government has invested more than $550 million to build integrity into the NDIS, including the Fraud Fusion Taskforce, ICT upgrades and the NDIA's payment integrity review workforce. The National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Act 2026 introduced tougher penalties and stronger powers for the NDIS commission to deter and to respond to non-compliance, abuse, neglect and harm. But more needs to be done.

The bill before parliament strengthens fraud prevention by improving the quality of plan managers and support coordinators. It expands mandatory provider registrations for high risk supports and requires all providers to enrol in a secure digital payment system. These measures will give the NDIS commission greater visibility of the market, allowing it to act early on high risk practices and remove providers that are doing the wrong thing.

Support coordination will also be reformed. Under the new model, the government will directly commission providers to deliver support coordination and connection services. This will improve quality, reduce conflicts of interest and ensure that participants no longer need to pay for support coordination from their plan budgets. A similar commissioning approach will be used to lift the quality of plan management services, reducing the number of providers from the current 1,400 and ensuring strict standards are met. We'll also undertake targeted consultation on supported independent living commissioning, hearing directly from participants, families, providers and industry representatives. The goal is a sustainable service model that supports innovation, market viability and better outcomes for participants.

Throughout all of this, one principle guides our work: participants with the greatest need will continue to receive critical supports that they require to live well with dignity. These reforms are not about cutting support; they're about ensuring the NDIS remains strong, fair and sustainable so it can keep supporting the people who need it for generations to come.

The NDIS really is a statement of our nation's values. It's a measure of our national character. It's a great embodiment of the great Australian notion of the fair go for all. It's more than a source of support; it's a source of pride for Australia. By acting now, we can safeguard and strengthen the scheme, ensuring it continues to serve Australians, as it was created to help them. This is a moment to reaffirm our shared commitment to protect the NDIS, to strengthen it and to ensure that it remains a foundation for dignity, fairness and opportunity for decades to come.

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