On 22 April 2026, NDIS Minister Mark Butler announced the biggest overhaul of the scheme since its launch. Here is a plain-English guide to what was announced, when it starts, and what it means for your plan.
Last updated: April 2026
Based on Minister Butler’s 22 April 2026 National Press Club announcement and reporting by The Conversation, InDaily, and government sources. Details subject to change as legislation is drafted.
Key Facts at a Glance
- Announcement date
- 22 April 2026
- Announced by
- Minister Mark Butler (Minister for Health, Disability and Ageing)
- Venue
- National Press Club, Canberra
- Current participants
- Around 760,000
- Target participants by 2030
- About 600,000 (160,000 reduction)
- Average plan value
- $31,000 → $26,000 (return to 2023 levels)
- Social & community participation cut
- Around 30%, from 1 July 2026
- Expanded mandatory provider registration
- 1 July 2026
- Legislation expected to pass
- End of 2026
- New eligibility rollout
- January 2028
What Was Announced on 22 April 2026?
NDIS Minister Mark Butler used his National Press Club address to announce a package of reforms that goes well beyond the changes already due on 1 July 2026. The government has proposed reducing the scheme from around 760,000 participants to 600,000 by the end of the decade, rewriting eligibility rules, and changing how plans are funded. Most proposals still need to pass Parliament, with legislation expected by the end of 2026 and the eligibility reassessment rollout beginning in January 2028.
The Headline Numbers
Minister Butler framed the reforms as necessary to ensure the long-term sustainability of the NDIS. The announcement set out the government’s targets over the next several years, alongside the measures proposed to reach them. The Minister said the scheme must return to its original intent and grow at a sustainable rate, while continuing to support Australians with significant and permanent disability.
“The NDIS is growing too fast for Australians to afford.”
160,000
Fewer participants by end of decade
The government aims to reduce scheme numbers from around 760,000 participants today to about 600,000 by the end of the decade.
$31K → $26K
Average plan value reduction
Average plan values are proposed to fall from around $31,000 to $26,000, returning to 2023 levels, with an average $5,000 cut phased in over the next two years.
End of 2026
Legislation expected to pass
The government has stated it intends to have the legislative framework for these reforms complete by the end of 2026.
January 2028
Eligibility reassessments begin
Reassessments of existing participants using new standardised functional assessments are scheduled to begin rolling out from January 2028.
New Eligibility Rules
The biggest structural change in the announcement is to how people qualify for the NDIS. The government proposes to move away from diagnosis-based access and towards a standardised assessment of day-to-day functioning.
Standardised functional assessments
Everyone applying to the scheme, and in time every existing participant, will be assessed using a standardised functional assessment tool. Only people assessed as having a “significant reduction in functional capacity in day-to-day living” will qualify for the NDIS.
Access Lists removed
The existing “Access Lists” (which automatically confirm eligibility for people with specified diagnoses such as certain permanent conditions) are proposed to be removed. Eligibility will no longer be granted based on diagnosis alone. Two people with the same diagnosis may end up with very different outcomes depending on how the new functional assessment rates their support needs.
Tighter reasonable & necessary rules
The “reasonable and necessary” test that governs what goes into a plan is set to be tightened, alongside a clearer boundary between the NDIS and mainstream services (health, education, housing, transport). Supports that are judged to be the responsibility of another system are expected to come out of NDIS plans.
Existing participants: the announcement included the reassessment of existing participants using the new functional assessment. This rollout is scheduled to begin from January 2028, and will be phased over time. No participant is being removed from the scheme today.
Plan Value Reductions
The government announced that the average NDIS plan will fall from around $31,000 to $26,000, returning scheme average plan values to 2023 levels. That reduction is expected to be phased in over the next two years, with an average $5,000 cut per plan over that period.
That’s a scheme-wide average, not a flat cut to every plan. What actually happens to any one plan will depend on the new functional assessment result, the tightening of reasonable & necessary rules, and how some supports move to mainstream systems. Participants with the highest support needs are expected to be least affected.
Why it matters for plan management: when plans get tighter, getting maximum value from every dollar matters more. A good plan manager helps you track your spending in real time, catches overcharging, pays invoices fast so providers stick around, and helps you pace your budget so it lasts the whole plan.
No More Plan Rollovers
The government also announced an end to plan rollovers. Under the proposal, unspent funds at the end of your plan will not roll over into your next plan. If you haven’t used it, you lose it.
Combined with the shorter funding periods already coming under the July 2026 changes (where your annual budget is released in quarterly slices), this puts much more emphasis on steady, planned spending across the whole plan rather than large end-of-plan catch-ups.
Practical tip: if you’ve traditionally had unspent funds at the end of your plan, speak to your plan manager and support coordinator now about pacing your supports more evenly. Underspend is no longer a safety net.
Social & Community Participation Cuts
The announcement confirmed reductions to social and community participation funding of around 30%. That’s the funding many participants use for community access, group activities, and getting out of the house. The government indicated these cuts are set to start from 1 July 2026.
The policy rationale is that some of these supports are considered better delivered through mainstream community services rather than individual NDIS funding. In practice, participants who rely on this funding will need clarity on what stays in plans and what is expected to come from other services.
We’ll update this page as the NDIA releases operational detail on exactly which line items are affected and from when. In the meantime, if you have social & community participation funding in your current plan, keep using it as approved. The rules for your existing plan don’t change mid-plan.
$200 million Inclusive Communities Fund
Not everything in the announcement was a cut. The government also announced a new $200 million Inclusive Communities Fund for mainstream and disability organisations. The fund is intended to build capacity in the community sector to deliver the kinds of inclusive supports (community access, social participation, belonging) that are being moved out of individual NDIS plans. Detail on who can apply and how it will be administered is expected in coming months.
Expanded Mandatory Provider Registration
The government announced an expansion of the categories of providers that must be registered with the NDIS Quality and Safeguards Commission. More types of providers will be pulled into mandatory registration, with changes set to commence from 1 July 2026.
Around 93% of NDIS providers are currently unregistered, meaning the vast majority of the provider market operates outside the formal oversight of the NDIS Quality and Safeguards Commission. The expanded mandatory registration is aimed squarely at that gap, bringing more of the sector under consistent safeguarding, complaints, and worker screening rules.
This builds on the NDIS Amendment (Integrity and Safeguarding) Bill 2026, which passed on 1 April 2026, and the graduated registration model recommended by the Disability Royal Commission and the NDIS Review.
What this means if you’re plan-managed: plan-managed participants can still use providers across a wide range of registration tiers, including many unregistered providers. The expansion of mandatory registration simply means more of the providers you already use will carry formal accountability to the Commission. Dedicated Plan Management is a registered NDIS provider (#4050163721).
Timeline
1 April 2026 (already law)
NDIS Amendment (Integrity and Safeguarding) Bill 2026 passes Parliament.
22 April 2026 (announcement)
Minister Butler announces the reform package at the National Press Club.
1 July 2026 (confirmed)
Social & community participation funding cuts of around 30% begin. Expanded mandatory provider registration commences.
End of 2026 (proposed)
Legislation underpinning the April 2026 reforms expected to be complete.
April 2027 (reportedly delayed)
The broader new planning processes (PACE rollout, new budget structure, shorter funding periods, support lists) are reportedly being delayed from 1 July 2026 to April 2027. Note: the social & community participation cuts and expanded mandatory provider registration above are not part of this delay. They still start on 1 July 2026.
January 2028 (proposed)
Rollout of eligibility reassessments for existing participants using standardised functional assessments begins.
End of decade (government target)
Scheme size reduced from around 760,000 to about 600,000 participants.
Announcements vs. law
Most of the items in this announcement are proposals that still require legislation or operational guidance. Your current plan and current rights do not change because of this announcement alone. For the changes that are already legislated, see our July 2026 changes guide.
What It Means for Participants, and How We Help
Panic won’t help. Preparation will. Plans under the new rules will reward participants who know their numbers, keep good records, and work with providers who take compliance seriously.
Real-time budget tracking
Every claim and every dollar in your plan visible at any time, so you never accidentally run out mid-quarter.
Fast invoice processing
We pay most invoices within 48 hours. Providers get paid promptly, which keeps your supports running without interruption.
Claim compliance
We check every invoice against the NDIS Pricing Arrangements and your plan before it gets claimed. Overcharging gets caught.
Dedicated plan manager
The same person every time, so they know your plan, your providers, and your goals. No call centres, no waiting queues.
What about plan managers?
The reforms include increased oversight of third-party intermediaries in the NDIS. As a registered NDIS provider (#4050163721) with full professional indemnity and public liability insurance, Dedicated Plan Management already meets the standards these reforms are designed to uphold.
If anything, these changes make choosing a properly registered, experienced plan manager more important, not less. Tighter plans, no rollovers, and a sharper focus on reasonable & necessary claiming all reward participants who are working with a plan manager that takes compliance, accuracy, and communication seriously.
Frequently Asked Questions
Who announced the April 2026 NDIS reforms?
NDIS Minister Mark Butler (Minister for Health, Disability and Ageing) announced the reforms on 22 April 2026 in an address to the National Press Club in Canberra. It is the biggest reform package for the National Disability Insurance Scheme since its creation.
When do the April 2026 NDIS reforms take effect?
The changes are phased. Social and community participation funding cuts of around 30% and the expansion of mandatory provider registration start from 1 July 2026. Legislation underpinning the wider reform package is expected to be complete by the end of 2026. Eligibility reassessments of existing participants using the new standardised functional assessments begin rolling out from January 2028. The government’s target of about 600,000 participants is set for the end of the decade.
How many NDIS participants will be affected?
The government has set a target of reducing scheme numbers from around 760,000 participants today to about 600,000 by the end of the decade, a reduction of roughly 160,000. Average plan values are also proposed to fall from around $31,000 to $26,000, returning to 2023 levels, phased in over the next two years.
What is the new NDIS functional assessment?
Under Minister Butler’s April 2026 reforms, eligibility will be determined by a standardised functional assessment rather than by diagnosis. Only people assessed as having a “significant reduction in functional capacity in day-to-day living” will qualify for the NDIS. The existing Access Lists, which automatically confirm eligibility for specified diagnoses, are proposed to be removed.
Will I lose my NDIS plan?
No. No participant is being removed from the NDIS because of the 22 April 2026 announcement. Your current plan continues to operate under its current rules. Reassessment of existing participants using the new functional assessment is not scheduled to begin until January 2028 and will be phased over time.
Am I going to be removed from the NDIS?
No participant is being removed from the NDIS because of this announcement. The government has set an end-of-decade target of around 600,000 participants, but the reassessment process for existing participants isn’t scheduled to begin until January 2028 and will be phased over time. Your current plan continues to operate under its current rules.
Will my next plan be smaller?
The announced $31,000 to $26,000 figure is a scheme-wide average over the next two years, not a flat cut to every plan. Whether your plan changes depends on your assessed support needs under the new rules and how the tightened reasonable & necessary test applies to the supports you have. Participants with the highest support needs are expected to be least affected.
I have unspent funds. What should I do?
If no-rollover rules come into effect for your next plan, underspend at the end of the plan is simply lost. The answer isn’t to rush and spend on things you don’t actually need. Claims still have to be reasonable and necessary. What makes sense is to talk to your plan manager and support coordinator about bringing forward supports you were genuinely going to use, like therapy, assistive technology assessments, or capacity-building supports.
Can I still choose my own providers?
Yes. Plan management has not been restricted in this announcement. Plan-managed participants can continue to use a wide range of registered and unregistered providers. The expansion of mandatory registration means more providers will have formal accountability to the NDIS Commission, but your choice and control as a plan-managed participant is unchanged.
Is this the same as the July 2026 changes?
No. The July 2026 changes come from the NDIS Amendment (Getting the NDIS Back on Track No. 1) Act 2024, which is already law, and include the new budget structure, support needs assessments, and funding periods. The April 2026 announcement is a further package of reforms on top of those, most of which still require new legislation.
Disclaimer: This page summarises the reform package announced by NDIS Minister Mark Butler at the National Press Club on 22 April 2026. Most of the measures described are government proposals that still require legislation or operational detail from the NDIA. Specific figures, dates, and policy settings may change as the reforms progress. We update this page as new information is released, but recommend checking ndis.gov.au for the latest official information. This content is general information only and is not legal advice.
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