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NDIS Reform Implementation: What the July–October 2026 Consultation Means for You

The NDIS reform consultation runs July-October 2026. Learn what's being consulted on, the timeline, and what participants and providers need to know.

News8 min read
NDIS Reform Implementation: What the July–October 2026 Consultation Means for You

TL;DR

  • The NDIS Amendment (Securing the NDIS for Future Generations) Bill 2026 was introduced to Parliament on 14 May 2026 [1].
  • The government is now running staged public consultations from July to October 2026 on six key reform topics [1].
  • A Technical Advisory Group is being established to advise on the new functional capacity assessment framework for NDIS access [1].
  • New eligibility rules and foundational supports are scheduled to go live on 1 January 2028 [2].
  • Consultation will occur in stages so the community can focus on one topic at a time. Submissions can be made in writing, by video (including Auslan), or by phone [1].

The Bill Is Law: What Changed in May 2026

On 14 May 2026, the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 was introduced to the Australian Parliament [1]. The Bill represents the most significant legislative change to the NDIS since its creation in 2013.

It passed the House of Representatives and is now subject to Senate inquiry and debate. If enacted in its current form, the Bill will:

  • Replace diagnosis-based eligibility with a functional capacity assessment framework
  • Enable the government to directly commission certain supports (starting with support coordinators and plan managers)
  • Provide the legislative basis for foundational supports outside the NDIS
  • Expand mandatory provider registration to more support categories [2]

But the legislation is only the beginning. The government's consultation process — running from July to October 2026 — will determine how these changes are actually designed, calibrated, and implemented.

Six Topics Under Consultation

The Department of Health, Disability and Ageing has identified six priority areas for public consultation [1]:

1. Commissioning Approach for Supported Independent Living (SIL)

The government will consult on a commissioning model for SIL participants who need 24/7 support. This would move away from the current market-based approach, where participants (or their nominees) choose providers, toward a government-procured model.

The stated aim is to improve support quality and address provider viability challenges [1]. Critics worry it could reduce participant choice and control — one of the NDIS's foundational principles.

2. Expanded Pricing for Unregistered Providers

Currently, unregistered providers are subject to price limits that differ from registered providers. The consultation will explore whether to expand differentiated pricing — potentially making unregistered provision more viable or, conversely, more restricted [1].

3. Inclusive Communities Fund Design

A new Inclusive Communities Fund is proposed to support mainstream community organisations (such as sporting clubs, arts groups, and libraries) to become more accessible and inclusive for people with disability [1].

This represents a shift in philosophy: instead of funding individual supports through NDIS plans, the government would invest in building inclusive environments across the community.

4. Market Reforms for Social and Community Participation

The government is consulting on market reforms for social and community participation (SCP) and capacity-building activities [1].

This is the category where 20% cuts have been flagged — and where the political controversy is most intense. The consultation will explore how to ensure "genuinely inclusive activities are available in the market" while also controlling costs [1].

5. Updated Framework Planning Rules

The legislation includes new powers for the government to set planning rules that shape how participant budgets are calculated and spent. The consultation will seek feedback on the design of these rules [1].

6. New Eligibility Process

Perhaps the most consequential reform, the government is consulting on the design of the new eligibility process based on functional capacity [1]. This will determine who gets into the NDIS under the new rules and who is directed to foundational supports instead.

The Technical Advisory Group on Access

To support the eligibility redesign, the government is establishing a Technical Advisory Group (TAG) on NDIS access [1].

The TAG will bring together national expertise in disability assessment, allied health, and disability rights to provide independent, evidence-based advice on:

  • Functional capacity assessment tools and thresholds
  • Equity and consistency in access decisions
  • Integration of assessment approaches
  • Alignment with the original intent of the NDIS Act 2013 [1]

Critically, the TAG's advice will be informed by consultation with the disability community — meaning lived experience will, at least in theory, shape the technical framework that determines eligibility [1].

The Grattan Institute supports the TAG concept but has warned that similar reforms have failed internationally and that an 18-month timeline is tight [2].

Timeline: What Happens and When

Phase Date Milestone
Legislation introduced 14 May 2026 Bill tabled in Parliament [1]
Public consultation opens July 2026 Six topics open for feedback [1]
Technical Advisory Group established July–August 2026 Experts appointed, community input sought [1]
Senate inquiry reports August 2026 Parliamentary scrutiny concludes
Legislation passes (target) Late 2026 Royal Assent, implementation begins
Functional capacity framework developed 2027 TAG advice integrated, tools tested
New rules go live 1 January 2028 New eligibility + foundational supports [2]
Growth target returns to 5–6% 2030 Long-term sustainability target [2]

This timeline is optimistic. The Grattan Institute has noted that standing up a new system of foundational supports by January 2028 is "a tall ask" and that rushing the functional capacity framework risks inequitable outcomes [2].

What Participants Need to Know

If you are an NDIS participant — or a family member supporting one — here is what the consultation means for you:

  • Your feedback can shape implementation: While the broad legislative framework is set, the consultation covers the design details that will affect your daily life. The government is accepting submissions in multiple formats, including Auslan and Easy Read [1].
  • The eligibility change is not immediate: New access rules will not take effect until January 2028. Current participants will not be reassessed overnight [2].
  • Foundational supports are still being designed: If you fear losing NDIS eligibility, now is the time to engage with the consultation and advocate for a robust alternative system — because it does not exist yet [2].
  • Monitor your plan: As market reforms roll out, particularly in social and community participation, pricing and availability of supports may shift. Stay in regular contact with your support coordinator.

What Providers Need to Know

For NDIS providers, the consultation is a critical window to influence how the market will operate from 2028 onward.

Registered providers should pay close attention to:

  • The SIL commissioning model (if you deliver Supported Independent Living)
  • Mandatory registration requirements being expanded to your category
  • Changes to pricing and claiming rules

Unregistered providers should monitor:

  • The differentiated pricing consultation — this could either open or restrict your market access
  • Mandatory registration expansion — you may need to register to continue delivering certain supports

All providers should consider making a submission, either individually or through a peak body. The Department of Health is also consulting directly with Disability Representative Organisations, NDIA advisory groups, health professionals, and disability support workers [1].


FAQ

Q: How do I make a submission to the consultation? The Department of Health will publish consultation papers for each topic on its website. You can submit written feedback, a video (including in Auslan), or request a phone call to share your views [1].

Q: Will current NDIS participants be grandfathered? The government has not confirmed a grandfathering arrangement. Existing participants will likely face reassessment under the new functional capacity framework when their plan review is due. However, the precise transition rules are still being developed [2].

Q: What is the Inclusive Communities Fund? It is a proposed fund to help mainstream community organisations — such as sports clubs, arts groups, and libraries — become more accessible to people with disability. It is part of the shift toward foundational supports outside the NDIS [1].

Q: When will the new eligibility framework be finalised? The Technical Advisory Group will provide advice through 2026–2027. The framework is scheduled to be operational by 1 January 2028 [1][2].

Q: Can the Senate still change the Bill? Yes. The Bill is currently before the Senate and subject to inquiry. Crossbench senators may force amendments, particularly around transitional arrangements, the pace of implementation, and protections for vulnerable groups.


References

[1] Australian Government Department of Health, Disability and Ageing, "Securing the NDIS for future generations: Update on public consultation," 4 June 2026. Available at: https://www.health.gov.au/news/securing-the-ndis-for-future-generations-update-on-public-consultation

[2] Grattan Institute, "The NDIS reform package is a step forward," 22 April 2026. Available at: https://grattan.edu.au/news/the-ndis-reform-package-is-a-step-forward/

[3] Australian Government Department of Health, Disability and Ageing, "Securing the NDIS for Future Generations Bill introduced to Parliament," 14 May 2026. Available at: https://www.health.gov.au/news/securing-the-ndis-for-future-generations-bill-introduced-to-parliament

[4] Australian Government Department of Health, Disability and Ageing, "Securing the NDIS for future generations," 22 April 2026. Available at: https://www.health.gov.au/news/securing-the-ndis-for-future-generations