NDIS changes mean psychosocial supports more urgent than ever


Thursday 22 April 2026

  • Federal Minister for Health and Ageing, Disability, and the National Disability Insurance Scheme, The Hon Mark Butler MP, has announced significant changes to manage the growth of the NDIS.
  • Minister Butler outlined four key areas where reforms will be made, in an effort to save $35 billion and reduce participation in the scheme by 160,000 people by 2030.
  • Psychosocial supports outside the NDIS are now more important than ever.

In what was a much-anticipated announcement at Canberra’s National Press Club yesterday, Minister Butler officially announced the government’s plans to manage the growth of the NDIS.

In an effort to keep the scheme sustainable for the long term, the government plans to save $35 billion and reduce participants on the scheme by 160,000 by 2030. For those who access the scheme, the announcement has caused concern and uncertainty.

Media speculation prior to the announcement that people with psychosocial disability might be removed entirely from the scheme had caused concerns.  However, Minister Butler was clear that psychosocial disability would still be included, to the relief of many mental health and disability advocates.

Minister Butler also acknowledged that people with psychosocial disability often found it more challenging to access the scheme.

However, there are already 500,000 Australians with a psychosocial disability who are unable to access support through the NDIS, who require community-based mental health supports to lead full, mentally healthy lives.

WAAMH CEO, Taryn Harvey, said she shared concerns about the potential removal of people from the scheme before new supports outside the NDIS were available.

“Increasing psychosocial supports outside the NDIS is now more urgent than ever, given the announced changes to eligibility criteria from 2028,” Ms Harvey said.

“Now is the time to mobilise these supports, so that we have a strong safety net for people with mental ill-health, before anyone is removed from the NDIS.

“That means mental health ministers need to be part of this conversation – not just disability ministers.”

Minister Butler’s announcement outlined four key areas for reform.

  • Redefining eligibility criteria – eligibility will be assessed based on functional support needs rather than diagnosis from 2028.
  • Slowing rapid cost increases – using differentiated pricing for different services and reducing average participation plan spends from $31,000 to $26,000 per year.
  • Focusing on the quality of services –creating a short-list of approved providers for activities and improving community inclusion through a new Inclusive Communities Fund.
  • Stopping fraudulent providers – addressing structural vulnerabilities within the scheme.

Minister Butler also confirmed that work on foundational supports outside the NDIS would continue.