NATIONAL DISABILITY INSURANCE SCHEME AMENDMENT (SECURING THE NDIS FOR FUTURE GENERATIONS) BILL 2026 SUMMARY
Background
On Thursday 14 May, Minister Mark Butler introduced the Securing The NDIS For Future Generations Bill into the House of Representatives. As highlighted in the Legislation the Bill seeks to address two key vulnerabilities.
- The sustainable growth of the NDIS, with current growth considered too high.
- The risk of fraudulent activity which is currently considered to have a negative impact on the scheme as a whole.
These two issues were prominent parts of the budget focus as savings and additional funding to the NDIS Quality and Safeguard Commission and Fraud Fusion Taskforce were prominent parts of spending for the NDIS.
The Bill contains 5 schedules (sections for non-legal readers) each split into different parts.
Schedule One – Access and Planning Measures
Sets out changes that put the NDIS on a sustainable footing now and into the future. This includes amendments relating to Scheme access that define substantially reduced functional capacity and permanence. There are also clarifications to access requirements where someone is, or could be, eligible for supports from other service systems.
This Schedule also sets out changes that relate to planning. This includes clarifying and strengthening the requirement for support needs to be directly related to eligible impairments, specifying the circumstances in which a participant can request a plan reassessment and expanding the ability to suspend plans in certain circumstances. This Schedule will introduce the concepts of plan renewals, to replace the administrative practice of plan continuations, as well as support determinations to help manage the financial sustainability of the Scheme. The Schedule will also strengthen the approach to determining reasonable and necessary supports for old framework plans.
This is broken down into 9 parts.
- Defining functional capacity
- Limit unscheduled plan reassessments
- Strengthen link between an impairment and need for support
- Support determinations
- Plan renewal
- Reasonable and necessary supports
- Plan suspension
- Tightening meaning of permanence to reduce access where an impairment can be treated
- Eligibility based on access to other services
Schedule Two – Fraud Measures
Schedule 2 sets out amendments that strengthen the ability of the Agency to effectively identify, investigate and respond to noncompliance and fraud and ensure the integrity of the NDIS. This includes amendments which would enable limiting the number of registered plan management providers. These providers would be subject to more rigorous integrity and compliance requirements under a deed of arrangement with the Agency. Amendments include an updated definition of ‘NDIS provider’ and changes to claiming timeframes. Further amendments provide the Agency with compliance and enforcement powers by triggering provisions of the Regulatory Powers Act and inserting a range of civil penalty provisions. This is further supported by introducing additional requirements for information gathering and retention of records.
This is broken down into 6 parts.
- Registration of NDIS providers
- Civil penalties and regulatory powers
- Information gathering powers
- Retention of records
- Reducing claim times
- Registered plan management providers
Schedule Three – Governance Arrangements
Schedule 3 sets out amendments to governance arrangements that support the effective operation and administration of the NDIS. This includes amendments relating to determining pricing arrangements, indexation of old framework plans and introducing amendments which support automated decision making.
These are broken down into 3 parts.
- Decision-making on pricing
- Automation of administrative action
- Minor amendments
Schedule Four – New Framework Planning
Schedule 4 sets out minor amendments to facilitate the operationalisation and roll out of new framework planning. This includes amendments to ensure a notice for a participant to have a new framework plan can be revoked and a participant can continue their old framework plan. There are also clarifications about who can undertake a support needs assessment and what information can be considered by an assessor.
This Schedule also sets out changes that relate to the design of the budget method to ensure it can include provisions to identify the needs for NDIS supports and allocate funding amounts to levels of need for NDIS supports. This is necessary because the core NDIS support needs assessment tool identifies support needs without reference to NDIS supports. NDIS supports will need to be translated using the outputs of the tool and be reflected in the budget method. Similar to proposed changes for old framework planning, this Schedule will enable the budget method to include funding caps for particular types, classes or groups of supports and ensure the supports needs assessment must identify support needs which have a direct causal connection to the impairments for which a participant meets access. The Schedule will also broaden requirements which can be included in participant’s reasonable and necessary budget for the acquisition or provision of supports and which must be satisfied before funding for the supports is provided.
Schedule 4 also includes provisions to clarify what material can be incorporated by reference in NDIS rules specifying a support needs assessment tool or a budget method and modify the transitional rule making powers contained in the Getting the NDIS Back on Track Act so that they account for the amendments made by this Bill.
This is focused on amendments on the following Acts.
National Disability Insurance Scheme Act 2013
National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024
Schedule Five – Transitional Rules
This Part sets out that the Minister may make transitional rules that deal with transitional matters (including any saving or application provisions) relating to any amendments or repeals in this Bill. This power would be limited in a variety of ways. Firstly, it would be time-limited, so that any rules must be made within 12-months following commencement of this Part. Secondly, any transitional rules made would expire after a period of 12 months. It would also prohibit the Minister from making rules that would create an offense or civil penalty; provide powers of arrest or detention or powers of entry, search or seizure; impose a tax; set an amount to be appropriated from the Consolidated Revenue Fund; or directly amend the text of the Act.
This is focused on the following Act.
National Disability Insurance Scheme Act 2013