NDIS 2026: What the Government's Overhaul Means for Our Community
In late April 2026, the federal government announced the most significant overhaul of the NDIS since 2013. Here is what has been announced, what it means for social and community participation funding, and what THC members can do right now to protect their supports.
In late April 2026, Federal Health and NDIS Minister Mark Butler announced the most significant overhaul of the National Disability Insurance Scheme since it was established in 2013. The changes are wide-ranging, and for many people in our community — participants, families, support workers, and organisations like The Happiness Crew — they raise important questions about what the future looks like.
We want to be transparent with you. Some of these changes will directly affect how social and community participation is funded, which is at the heart of everything we do. This post sets out what has been announced, what it means, and what you can do right now to protect your supports.
Why Is the Government Making These Changes?
The NDIS has grown significantly since it launched. In 2026, it costs the federal government approximately $47 billion per year — making it one of Australia's largest social programs. The government has argued that the scheme's growth is unsustainable, and that some funding is not reaching people with the highest support needs.
The stated goal of the reforms is to make the scheme financially sustainable while maintaining strong support for those who need it most. However, disability advocacy organisations, researchers, and sector bodies have raised serious concerns about who will bear the cost of these savings.
What Has Been Announced: The Key Changes
1. Tighter Eligibility — Around 160,000 Participants May Be Removed
One of the most significant announcements is a shift in how eligibility for the NDIS is determined. Currently, eligibility is largely based on having a diagnosed disability. Under the proposed changes, eligibility will be based on a new functional capacity assessment — a tool developed by the World Health Organization that measures what a person can and cannot do in daily life, rather than simply what condition they have been diagnosed with.
The government estimates that approximately 160,000 current NDIS participants will be moved off the scheme by the end of the decade under these new criteria. Those most likely to be affected are people with autism or developmental delays who are assessed as having lower measured support needs.
Critically, the new Framework Planning process — which will govern how these assessments work — has been delayed until April 2027, meaning many details are still being worked out. Disability organisations, including MS Australia, have raised concerns that standardised functional assessments may not adequately capture the variable, fluctuating, or progressive nature of conditions like multiple sclerosis, acquired brain injury, and other neurological conditions.
2. Social and Community Participation Funding — Cuts Starting 1 July 2026
This change is particularly relevant to our community. Social and community participation is a funding category within Core Supports that covers activities like attending community events, social groups, and recreational programs — exactly the kind of experiences The Happiness Crew provides.
From 1 July 2026, the government will cap spending on social and community participation at 2023 levels. This means that for many participants, the amount available in their plan for these activities will be reduced — potentially significantly — compared to what they have been receiving in recent years.
The government has announced a $200 million Inclusive Communities Fund to replace some of this individual funding. This fund will be available to mainstream and disability organisations to build community capacity and create inclusive programs. However, many in the sector have noted that this transition — from individual plan funding to a pooled community fund — will take time to implement, and that the gap between when individual funding is cut and when community alternatives are available could leave many people without adequate support.
3. Plan Costs to Be Reduced
Average NDIS plan costs are to be brought down from approximately $31,000 per year in 2026 to $26,000 per year — returning to 2023 spending levels. Overall spending growth will be capped at 2% annually for the next four years, before returning to 5% from 2030. This is a significant reduction from the previous growth target of 8% per year.
4. Plan Manager and Support Coordinator Spending Cut by 30%
Spending on third-party intermediaries — including plan managers and support coordinators — will be reduced by 30%. The government has indicated that a curated list of quality providers will be made available for participants to choose from. For participants who rely heavily on plan managers or support coordinators to navigate the system, this change may affect the level of assistance available to them.
5. Mandatory Provider Registration Expanded
Currently, approximately 93% of NDIS service providers in Australia are unregistered. The government has announced that mandatory registration will be expanded, particularly for providers delivering higher-risk supports such as personal care. A new digital payment system will also require providers to submit evidence of work before being paid.
While these changes are aimed at reducing fraud and improving quality, they will require many providers — including smaller community organisations — to navigate new registration and compliance requirements.
What the Sector Is Saying
The response from disability organisations has been measured but concerned. MS Australia, in a statement released on 30 April 2026, acknowledged the government's need to manage the scheme's affordability but expressed concern about reductions in social and community participation funding, fewer support coordinators and plan managers, and the potential impact of standardised functional assessments on people with neurological conditions. Their CEO, Rohan Greenland, stated: "A sustainable NDIS must also be a fair and accessible NDIS. For people living with MS and other neurological conditions, supports are not discretionary. They are essential."
Mental Health Carers NSW has similarly raised concerns that cuts to community participation funding and the replacement of individual funding with a pooled community fund could shift the burden onto families and carers. Researchers at UNSW have noted that the transition period — between when individual funding is reduced and when community alternatives are operational — poses a real risk for participants who depend on these supports for their wellbeing and independence.
A Timeline of Key Changes
| Date | Change |
|---|---|
| 1 July 2026 | Social and community participation funding capped at 2023 levels; mandatory provider registration expanded; new digital payment system for providers |
| 2026–2030 | Overall NDIS spending growth capped at 2% annually; plan costs reduced toward $26,000 average; 30% cut to plan manager/intermediary spending |
| April 2027 | New Framework Planning process begins (delayed from earlier timeline); new functional capacity assessment tool introduced |
| By end of decade | Approximately 160,000 participants expected to transition off the NDIS under new eligibility criteria |
| Ongoing | $200 million Inclusive Communities Fund to be distributed to community organisations |
What This Means for The Happiness Crew Community
We want to be honest with you: the cuts to social and community participation funding will affect the way some of our members are able to fund their attendance at THC events. If your NDIS plan includes funding under the social and community participation category, it is possible that the amount available to you will be reduced when your plan is next reviewed after 1 July 2026.
At the same time, The Happiness Crew is committed to continuing to provide meaningful, joyful community experiences for everyone in our crew — regardless of how the funding landscape shifts. We are watching the development of the Inclusive Communities Fund closely, and we will be exploring every avenue to ensure our programs remain accessible.
What You Can Do Right Now
There are practical steps you can take today to protect your supports and stay informed:
1. Review your current NDIS plan. Check what funding you have in the social and community participation category. If your plan is due for review soon, consider requesting a review before 1 July 2026 to lock in your current funding levels for longer.
2. Talk to your support coordinator or plan manager. Ask them specifically about how the July 2026 changes may affect your plan. A good support coordinator should be able to help you understand your options and advocate on your behalf during any plan review.
3. Keep records of how you use your supports. The new functional capacity assessment will look at what you can and cannot do in daily life. Having clear documentation of how your disability affects your daily functioning — from your treating professionals, support workers, and your own records — will be important if you are asked to undergo a reassessment.
4. Stay connected with advocacy organisations. Groups like MS Australia, People with Disability Australia, and Disability Council of Australia are actively engaging with the government on these changes. Following their updates will help you stay informed as the details are worked out.
5. Have your voice heard. The government has indicated there will be consultation processes as the new Framework Planning is developed. Participating in these consultations — or supporting organisations that do — is one of the most powerful ways to influence how these changes are implemented.
Our Commitment to You
The Happiness Crew was built on a simple belief: that every person deserves to feel joy, connection, and belonging in their community. That belief does not change with government policy.
We will continue to run our events. We will continue to welcome every member of our crew. And we will continue to advocate — loudly and persistently — for a funding environment that recognises the profound value of social and community participation for people with disability.
If you have questions about how these changes might affect your ability to attend THC events, please reach out to us at [email protected]. We are here to help you navigate this together.
This post was last updated on 30 April 2026. As the government releases further details about the implementation of these changes, we will update this article accordingly. Sources include announcements from the Federal Department of Health and NDIS, reporting by The Guardian, ABC News, UNSW Newsroom, and statements from MS Australia and Mental Health Carers NSW.
