The NDIS changes 2028 are no longer a proposal. The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 has passed the Senate with Coalition support and is being rubber-stamped by the House of Representatives. It's now law.
For the 782,000 Australians currently on the NDIS, and the many more who may try to access it in the future, this is a significant moment. Analysis from the Grattan Institute suggests hundreds of thousands of people will be moved off the scheme or prevented from joining under the new rules.
This article breaks down what has changed, what it means for participants, and what you can do right now.
The NDIS has been growing fast. The scheme cost $50 billion this financial year and is projected to hit $100 billion within a decade. The government says the new law will save $38 billion over the next four years by tightening who can access the NDIS and what it will fund.
There are changes happening now, and there are changes scheduled for January 2028. The 2028 changes are the ones that will have the biggest impact on eligibility.
A new functional capacity test is coming
The current diagnosis-based model for assessing NDIS eligibility is being replaced by a new functional capacity test. The test is still being developed by a technical working group. What it will look like in practice is not yet fully known, but the intent is to assess what a person can do without support, rather than simply what their diagnosis is.
This is a fundamental shift. For many participants, their diagnosis has been central to their access. Under the new model, how that diagnosis affects their day-to-day functioning will carry more weight.
Social and community participation funding is being cut in half
One of the most immediate and significant impacts of the new law is that social and community participation supports can be reduced by up to 50 per cent by ministerial determination. This can happen without changing the text of a participant's plan.
Megan Spindler-Smith, Acting CEO of People With Disability Australia, was direct about what this means in practice.
"There will be harm, there will be injuries. What we are talking about here is that when you reduce people's access to the supports that they need to be able to get out of bed, access the community, go to work, you ostensibly isolate people. The support needs do not go away when the funding is cut or when the supports are removed. They just get pushed onto either systems or other people, and that means isolation."
- Megan Spindler-Smith, Acting CEO, People With Disability Australia
The permanence test is tightening
From January 2028, if the NDIA determines that a treatment exists that could reduce the impact of your impairment, they may use this to question whether your disability meets the permanence requirement for NDIS eligibility. A key win for advocates during the Senate process was clarification that restrictive practices, such as chemical restraint, seclusion, or physical restraint, cannot be considered as part of the "all appropriate treatment" test. This prevents those interventions from being used as a reason to deny access.
Mainstream services will take on more responsibility
Also from January 2028, if the NDIA determines a support could be provided by a mainstream service such as health, education or community services, they may decide it is not the NDIS's responsibility to fund it. States and territories are being funded with $10 billion over five years to build alternative programs.
The first of these is Thriving Kids, a $4 billion program for children with mild to moderate autism and developmental delays, set to launch in approximately six weeks. Queensland has not yet formally signed up, though all other states and territories have implementation plans in place.
"We are already having these conversations with participants and families. People are worried, and they have every right to be. Our advice is always the same: do not wait. Get your documentation current now, talk to your support coordinator before your next plan review, and make sure your reports show the real functional impact of your disability on daily life. The participants who are prepared will be in a much stronger position."
Junaed Raza, Dream Maker Community Services
The bill did not pass without a fight. More than 4,500 submissions were received during the Senate inquiry. Advocates secured several important amendments and clarifications:
• Restrictive practices, including chemical restraint, seclusion and physical restraint, are explicitly excluded from the "all appropriate treatment" requirement for NDIS access
• Participants requiring 24-hour care have added protections from the community participation funding cuts
• New fraud offences have been created, including penalties for NDIS providers that offer inducements or kickbacks to attract participants
• Whistleblower protections have been strengthened
• Guidance on what supports parents are expected to provide has been clarified
Disability Program Director at the Grattan Institute, Sam Bennett, noted that while 63 amendments were tabled, those that passed were largely minor in scope, describing most as "pretty minor tweaks to the existing provisions."
These changes will affect different participants in different ways. Those most likely to face challenges under the new rules include:
• People with psychosocial or mental health disabilities, where treatments are widely available even if outcomes vary significantly
• People with acquired brain injury, where rehabilitation pathways exist but do not always lead to full recovery
• Children who currently access therapy through the NDIS that also exists within school or public health systems
• Participants in regional and remote areas where mainstream services technically exist but have long waiting times or limited capacity
• People with fluctuating conditions whose disability is not always visible or straightforward to document
The law has passed, but the January 2028 changes are still more than a year away. That window matters. Here is what we recommend:
• Talk to your support coordinator now about how the new rules could affect your specific situation
• Book updated assessments with your allied health team. Make sure reports clearly describe the functional impact of your disability, not just the diagnosis
• Document why mainstream services cannot adequately replace your NDIS supports. Waiting times, geographic barriers and service gaps all count as evidence
• Ask your planner or LAC to note that your disability remains permanent and your supports cannot be replaced by mainstream services
• If you believe you are at risk, contact your state-based disability advocacy organisation for independent support
We have been supporting Australians with disability since 2019. We know these changes feel enormous, particularly when you are already navigating the everyday realities of living with disability or caring for someone who does.
Our team works alongside participants and families through exactly these kinds of transitions. We help people understand what changes mean for their specific situation, ensure support needs are thoroughly documented, and provide advocacy through plan reviews.
We specialise in Supported Independent Living and Specialist Disability Accommodation across New South Wales and Victoria. If you want to understand how the NDIS changes 2028 might affect your plan, reach out. We're here.
Has the NDIS Amendment Bill 2026 actually passed?
Yes. The bill passed the Senate with Coalition support in August 2026 and is being rubber-stamped by the House of Representatives. It is now law. Some provisions take effect immediately, others roll out through 2027, and the biggest eligibility changes begin on 1 January 2028.
What is the new functional capacity test?
The new test will assess what a person can do without support, rather than relying on a diagnosis. It replaces the current diagnosis-based model. The test is still being developed by a technical working group and the exact format is not yet finalised.
Will community participation funding really be cut in half?
The new law gives the Minister the power to reduce social and community participation funding by a set percentage without amending individual plans. The law does not cap this at 50 per cent, though that figure has been widely reported in the context of the reforms. Participants requiring 24-hour care have added protections from these cuts.
What are states doing to replace NDIS supports?
States and territories are receiving $10 billion over five years to build alternative programs for people who will no longer qualify for the NDIS or whose supports are being redirected. The first program, Thriving Kids, is a $4 billion initiative for children with mild to moderate autism and developmental delays, due to launch in approximately six weeks. Other programs for adults with low to moderate support needs are still being developed.
Is there still time to prepare before 2028?
Yes. The major eligibility and mainstream services changes do not begin until 1 January 2028. The most important thing participants can do right now is make sure their support needs are thoroughly documented and that their allied health reports clearly describe the functional impact of their disability on daily life.
How can Dream Maker Community Services help me?
If you are a current DMCS participant, speak directly to your support coordinator about how these changes might affect your plan. If you are not yet with us and want support navigating the changes, contact us through dreammakercommunityservices.com.au.
Looking for support navigating the NDIS changes? Dream Maker Community Services is a registered NDIS provider supporting participants through plan reviews, Supported Independent Living and SDA across Western Sydney, and Melbourne. Get in touch today or submit a referral.
Disclaimer: This article is for general information purposes only and does not constitute legal or financial advice. NDIS rules and legislation are subject to change. We recommend speaking with a registered support coordinator, disability advocate, or legal professional for advice specific to your situation. Information in this article is current as of August 2026.
Dream Maker Community Services is an NDIS-registered provider operating across New South Wales and Victoria. We specialise in Supported Independent Living, SDA accommodation, community participation, daily personal activities, life skill development, household support, and assisted transport.
If any of this sounds like what you or someone you love needs, get in touch with our team today. No pressure, no jargon, just a real conversation about how we can help.