We can’t deliver ‘like-for-like-services’ for people kicked off the NDIS, states warn Albanese government

States and Territories Caution Against NDIS Overhaul’s Impact on Participants

We can t deliver like for like - Disability ministers from across Australia have raised alarms regarding the proposed reforms to the National Disability Insurance Scheme (NDIS) under the Albanese government, emphasizing concerns that the changes could undermine the quality of support for participants. These warnings come as the government plans to transition over 200,000 individuals off the NDIS by 2031, a shift that state and territory representatives argue may not be sustainable without adequate safeguards. The opposition, which has consistently backed measures to improve the financial viability of the scheme, has also joined the critique, highlighting the urgency of addressing the human impact of these reforms.

Legislative Changes Aim to Curb NDIS Growth

The government’s National Disability Insurance Scheme bill is designed to reduce the $50bn-a-year program’s expansion by initially trimming budgets and later limiting access to the scheme starting in 2028. This legislative effort is currently under review by a Labor-led Senate committee, set to deliver its findings next week. While the bill’s goal of slowing the program’s growth is acknowledged as necessary, the states and territories stress that this objective must not come at the expense of participant safety and long-term outcomes.

“Curbing the NDIS’s growth is important, but it should not overshadow the need to protect individuals who rely on the scheme,” said a joint submission from state and territory disability ministers to the NDIS inquiry. The submission underscores that the current reforms have not involved meaningful consultation with the states, which are worried about the federal government’s unilateral authority over the NDIS. This power, they argue, signals a shift toward federal dominance, potentially sidelining the collaborative governance model that has historically supported the scheme.

“Without a careful, coordinated approach that aligns these changes with broader improvements across the disability support system, there is a significant risk that people with disability will end up in hospitals or other settings that are inappropriate and unable to meet their needs, or have no access to services at all.”

The submission also highlights the absence of clearly defined alternative supports for participants being removed from the NDIS. This gap, according to the ministers, could lead to unmet needs and place additional pressure on state and territory systems, which are already stretched thin in areas like health, education, and justice. “States and territories are not in a position, and have made no agreement, to deliver like-for-like services to people who are exited from the NDIS,” the document states.

Opposition Voices Concern Over Swift Reforms

Shadow NDIS minister Melissa McIntosh has pointed out that the rapid pace of proposed changes risks overlooking the human lives affected by the policy. “We cannot forget that there are human lives at the other end,” she said, stressing the importance of ensuring that the NDIS remains a robust support system even as it undergoes transformation. McIntosh noted that the inquiry’s responses this week reveal widespread unease about the bill’s current form, with no support for its immediate implementation.

The federal health minister, Mark Butler, has defended the plan, stating that it was thoroughly developed to stabilize the NDIS for the long term. “The plan that I announced many weeks ago now … was a very well-developed plan that thought carefully about the way in which we could get the NDIS back on track,” Butler remarked. However, he declined to acknowledge the states’ concerns when asked whether the government would reconsider the scale of budget cuts. The legislation is now set for a vote before parliament’s winter break on 2 July.

Victorian Government Introduces Thriving Kids Initiative

Meanwhile, the Victorian government has unveiled the first details of its Thriving Kids program, which will begin rolling out from October. This initiative, announced by the federal government last year, aims to remove children under nine with mild developmental delays and autism from the NDIS by 2028. The $4bn program is a joint effort between state and territory governments and the Commonwealth, but its rollout has sparked debate about how well it will address the needs of affected families.

Under the Victorian plan, each child will undergo two developmental assessments: one before starting kindergarten and another before primary school. These assessments, to be conducted by clinicians and allied health professionals, will focus on identifying developmental delays early. The goal is to ensure that children with mild disabilities receive targeted support outside the NDIS, potentially easing the financial burden on the program. However, the states have warned that without a comprehensive strategy to replace NDIS services, this shift could leave families without adequate resources.

“The NDIS must be sustainable, but in the rush of cutting expenditure, we cannot forget that there are human lives at the other end, and we have a responsibility to get this legislation right so people with significant and permanent disabilities are protected.”

Opposition leader Angus Taylor has echoed calls for a longer Senate inquiry, though he did not confirm whether the Greens would support extending it. The Coalition’s stance reflects broader concerns about the timeline for the reforms and the potential consequences for vulnerable populations. The debate centers on whether the government’s approach balances financial sustainability with the social and emotional well-being of participants.

Key to the discussion is the 50% reduction in social and community participation budgets, which states argue could exacerbate isolation and segregation for participants. These cuts, they claim, might lead to “unsafe situations” where individuals with disabilities are forced into environments ill-suited to their needs. “The planned reductions will increase isolation and create risks for participants who rely on community-based support,” one state minister said during the inquiry.

Need for Coordinated Strategy to Mitigate Risks

Disability ministers have stressed that the NDIS overhaul must be paired with a coordinated strategy across all levels of government. This includes ensuring that alternative support systems are in place to handle the increased demand on state and territory services. Without such alignment, they warn, the transition could lead to a fragmented approach where participants are left without the care they need.

“The NDIS is not just a financial program—it’s a lifeline for millions of Australians with disabilities. Any changes must be made with careful consideration of their impact on individuals’ lives,” said one of the state representatives during the inquiry. The submission highlights that the current reforms may not account for the long-term consequences of shifting participants to other services, particularly in regions with limited resources.

As the Senate inquiry progresses, the focus remains on how the government can ensure the NDIS remains both financially viable and responsive to the needs of its participants. With the deadline approaching for passing the legislation, the debate over the reforms is intensifying, and the outcome could shape the future of disability support in Australia for years to come.