The NDIS Bill Has Passed

What the law actually does — and what participants need to do now

Disclaimer: This article reflects publicly available information as at 23 August 2026. The NDIS Amendment (Securing the NDIS for Future Generations) Act 2026 has passed parliament. This article is for general information only and does not constitute disability support, legal, or financial advice. For personalised advice, contact the NDIA on 1800 800 110, your Support Coordinator, or a disability advocacy organisation.

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On 19 August 2026, the Senate passed the NDIS Amendment (Securing the NDIS for Future Generations) Act 2026 with 63 amendments. The House confirmed it the following day. The legislation is now law.

This moment has been coming since the bill was introduced in May 2026. More than 4,500 people and organisations made submissions to the Senate inquiry. National rallies were held across six cities. Multiple institutions — the Human Rights Commission, state and territory disability ministers, the government's own advisory committee — raised serious concerns. And yet the bill passed, with Coalition support providing the numbers the government needed.

This article sets out what the law actually does, when each change takes effect, what the 63 amendments mean in practice, and what the response from the disability sector looks like. It closes with what participants should do now.

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What the Law Does: The Core Changes

1. New Eligibility Criteria (From January 2028)

The most significant long-term change. From January 2028, people applying to join the NDIS will be assessed against new eligibility criteria that:

• Focus on permanent impairment rather than diagnosis
• Require applicants to demonstrate they have tried all publicly funded treatments relevant to their condition before being assessed as permanently impaired
• Assess functional capacity across daily life domains — not simply what condition a person has

The new eligibility criteria are expected to reduce the scheme from approximately 760,000 participants to around 600,000 by 2030. About 240,000 current participants are projected to be reassessed and potentially exit the scheme between 2028 and 2031.

Minister Butler confirmed that the new functional capacity assessment criteria — including the role of the I-CAN v6 framework — will be made clear well ahead of January 2028.

What this means for current participants: Your existing plan is not affected by this change until your plan review falls under the new framework. The NDIA will contact you in advance of that transition. Nothing changes immediately.

2. Funding Reductions for Community Participation and Capacity Building (From 1 October 2026)

This change proceeds regardless of the bill, through ministerial declaration powers. From 1 October 2026:

• Social and community participation budgets will be reduced by up to 50 per cent
• Capacity building daily activities budgets will be reduced by 10 per cent

These reductions apply when plans are renewed or reassessed.

If your plan includes significant community participation or capacity building funding, speak with your Support Coordinator now. The October date is firm and approaching.

3. The I-CAN v6 New Planning Framework (From 1 April 2027)

The new planning framework — including the I-CAN v6 support needs assessment — commences its staged rollout from 1 April 2027 for participants aged 16 and over. This date was confirmed before the bill passed and is unaffected by any of the bill's provisions.

4. Stronger Provider Integrity and Anti-Fraud Measures

The law introduces:

• New criminal and civil penalties for providers who offer or provide kickbacks
• Additional whistleblower protections for people who report fraud or misconduct
• Greater NDIA enforcement powers to take swifter action against unsafe or unethical providers
• Expanded banning order powers under the Integrity Act (which took effect separately in July 2026)

5. An Escalation Pathway for High-Needs Participants

One of the amendments secured during the final Coalition deal: a formal escalation pathway for participants requiring 24-hour continuous care. These individuals can apply for a plan variation to ensure their high-level needs are met and they are protected from the community participation funding reductions.

This is a meaningful protection for the highest-needs group — people whose removal from adequate support would represent the most acute safety risk.

6. Automated Decision-Making Within the NDIA

The law enables the NDIA to use automated systems for certain decisions within the scheme. This provision was one of the most contested elements throughout the inquiry. The final bill includes more transparency requirements around automated decision-making (secured through the June Greens amendments) but does not prohibit it.

ACOSS specifically flagged this as a concern, citing the Robodebt disaster as a warning. Their argument: pursuing large-scale budget savings in a compressed timeframe, through automated systems applied to people who depend on those decisions for life-sustaining support, is the kind of approach that has caused serious harm before.

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What the 63 Amendments Changed

The government agreed to 63 amendments before passage. The most significant:

High-risk escalation pathway — participants requiring 24-hour care can apply for a plan variation to ensure their needs are met, protecting them from the community participation cuts.

Tightened fraud penalties — criminal and civil penalties for kickbacks and financial inducements in the NDIS market.

Whistleblower protections — formal protections for people who report fraud or misconduct within the scheme.

Limits on ministerial declaration powers — the June Greens deal constrained (but did not eliminate) the minister's power to make sweeping funding cuts across entire support categories.

Automated decision-making transparency — requirements for greater public disclosure about where and how automated systems are used in NDIA decision-making.

Treatment requirements narrowed — the original bill required exhausting all treatment options; the final version requires only publicly funded treatments in Australia, with restrictive practices excluded from counting as appropriate treatment.

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What the Disability Sector Said When It Passed

People With Disability Australia (PWDA):

PWDA's response was unsparing. Thousands of people with disability had provided evidence of what these changes would mean for their lives — warning about harm, injury, lost opportunities, and lives at risk. Parliament proceeded anyway.

PWDA's assessment: the cuts are equivalent to 51,600 full-time jobs and 94 million hours of paid care annually by 2029–30.

ACOSS (Australian Council of Social Service):

ACOSS described the outcome as a tragedy. For years, the disability community and their advocates had sought to co-design reforms with parliament to strengthen the NDIS. Instead, ACOSS said, the government rushed through deep and lasting changes without proper collaboration and without listening to the people most affected.

Business Council of Australia (supportive):

The BCA welcomed the bill's passage, noting the focus should now turn to implementation — signalling the business community's support for the scheme's financial rebalancing.

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What Is Already Happening Before the New Law Takes Effect

Even before the new eligibility criteria take effect in 2028, the system is already shifting.

AFR reported this week that approximately 40 per cent of NDIS plan reassessments in the first quarter of 2026 — around 18,000 people — resulted in funding reductions. The disability sector has described this as the government enforcing budget discipline under existing rules, in advance of the formal legislative changes.

This figure is significant. It means the experience of having a plan review reduce your funding is already common — not a future risk but a current reality for many participants.

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The Work That Still Needs to Happen

Minister Butler was unusually candid about what remains unfinished.

On foundational supports for people who will leave the scheme, particularly older children: he acknowledged there is "substantial" work still to do. The Thriving Kids program for children under 9 is on track to roll out from October 2026, but Butler floated a "Thriving Teens" concept — an equivalent program for older children — that would need to be developed within 16 months. No such program currently exists.

Queensland has not signed on to Thriving Kids, despite other states and territories having implementation plans in place. Butler described it as a "question of honour" for states to fulfil their January 2026 National Cabinet commitments.

PWDA's response was direct: the alternative supports simply do not exist yet, will take time to build, and states and territories have already said they will not be like-for-like replacements. The unanswered question is what will actually be there on 1 January 2028, and whether it can realistically replace 94 million hours of paid care that are being removed.

The government has said all alternative support systems need to be ready by 1 January 2028 — the same day the new eligibility criteria take effect.

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What Participants Should Do Now

Understand your timeline. The October 2026 community participation and capacity building reductions are the most immediate concern. Your 2028 reassessment is the most consequential long-term. Between now and April 2027, the I-CAN v6 new planning framework will begin rolling out.

Prepare your I-CAN v6 documentation. The direction of the NDIS — toward standardised functional capacity assessments and clear documentation of support needs across the 12 domains — is now confirmed in law. Starting your preparation now means you will be ready when your assessment arrives. ICANReady was built specifically for this.

If your plan has been reduced, act within 3 months. The 40 per cent plan review reduction figure means many participants are already experiencing what the new environment looks like. If you have received a plan decision you believe is wrong, you have 3 months from receiving it to request an internal review. See our guide: What to Do If Your I-CAN v6 Outcome Doesn't Reflect Your Needs.

Connect with independent advocacy. DANA and your state and territory disability advocacy service are there for you. So is PWDA. The work of the disability community in responding to these changes is ongoing — the passage of the bill is not the end of that work.

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Sources: ABC News (18–19 August 2026), SMH (18–19 August 2026), ACOSS media release (19 August 2026), PWDA media release (19 August 2026), AFR (12 August 2026), health.gov.au ministerial media releases, NDIS.gov.au (19 August 2026).