NDIS Assessment Criteria Changes and What the 1 July 2026 Reforms Mean for Participants and Families
If you or someone you love relies on the National Disability Insurance Scheme, the second half of 2026 is shaping up to be one of the most significant periods in the scheme’s history. From 1 July 2026, the way NDIS plans are assessed, designed, and funded will begin to change in ways that will affect almost every participant eventually — and understanding what is coming is the first step toward making sure your supports remain exactly where they need to be. At Caring Arms Australia, we are a registered NDIS provider committed to keeping the people we support informed, empowered, and well-prepared. Here is everything you need to know about the upcoming changes to NDIS assessment criteria and what the new planning framework means for your day-to-day life. Why Is the NDIS Changing Its Assessment Approach? The existing NDIS planning process has been in place, broadly unchanged, since the scheme launched. Over time, it became clear that outcomes were inconsistent — two participants with almost identical needs could receive very different funding, depending on which planner reviewed their case, which reports they submitted, and how well they navigated the system. The NDIS Review, which consulted thousands of people with disability, families, carers, and providers, confirmed what many already knew: the process needed to be fairer, more transparent, and genuinely person-centred. The new framework is the government’s direct response to that feedback. Rather than relying on functional impairment as the primary lens — essentially, what you cannot do — the new approach shifts focus to what disability-related supports a participant actually needs in their daily life. This is a meaningful philosophical shift, not just an administrative one, and it has the potential to result in plans that better reflect real lived experience. The New Support Needs Assessment: What to Expect The centrepiece of the July 2026 changes is the introduction of a new Support Needs Assessment, which will replace much of the current evidence-gathering process for plan creation. Rather than relying on a collection of reports from treating professionals and lengthy written submissions, participants will instead have a structured conversation with a trained and accredited NDIS assessor. The assessor will meet with participants at a time and place that suits them. Importantly, participants are encouraged to bring family members, carers, or support people to this conversation — this is not a clinical test to pass, but a genuine discussion about daily life and what supports are needed to navigate it. The assessor will use a tool called I-CAN v6 (the Instrument for Classification and Assessment of Support Needs), developed by the University of Melbourne and the Centre for Disability Studies over more than two decades of research in the care sector. This tool is designed to be strengths-based and person-centred, focusing on what kind of support a person needs rather than simply cataloguing their limitations. The assessment report produced from this conversation will directly inform the participant’s NDIS budget. All plans will still be reviewed and approved by trained NDIS staff, and participants will retain their right to request a reassessment or appeal a decision through the Administrative Review Tribunal if they believe the outcome does not reflect their needs. How Plan Budgets Will Change From 1 July 2026 Currently, NDIS plans are organised into three funding categories: Core Supports, Capacity Building, and Capital Supports. Each category has its own rules about what the money can and cannot be spent on, and many participants find the current system rigid and confusing — particularly when their needs don’t fit neatly into one category. From July 2026, new framework plans will move to a simpler two-part structure. The first part is a flexible budget, which participants can use across any approved NDIS supports, giving greater choice and control over how funding is spent. The second part is stated funding, which is designated for specific, higher-intensity supports — such as Supported Independent Living — that require qualified providers and cannot be easily substituted. This restructure is designed to reduce the administrative burden on participants while ensuring the highest-need supports remain properly resourced. Plans will also run for longer periods under the new framework, meaning participants will face fewer routine plan reviews and will have more time and certainty to plan their lives around their supports. Reviews can still be requested at any time if a participant’s circumstances change significantly. Who Will Be Affected First — and When? The rollout will be phased rather than immediate. From 1 July 2026, the NDIS will begin new framework planning with adults aged 18 and over who have less complex support needs. All participants aged 16 and over are expected to be transitioned to new framework plans by October 2029. Participants under 16 will begin transitioning from July 2027, though the Government has acknowledged that no suitable assessment tool for younger children has been finalised yet. Children already enrolled in the NDIS will remain on the scheme during this transition. Changes to access criteria for children under 9 with autism or developmental delay who have lower support needs will not take effect until 1 January 2028 at the earliest, and those changes require separate legislative amendments. If you have a plan review scheduled before 1 July 2026, it will proceed under the current system. Reviews scheduled from July 2026 onward will use the new framework, but only for those in the initial rollout group. Your current plan remains valid until you are personally notified of a transition. There is nothing you need to do right now — the NDIA will contact you directly when your transition is approaching. Mandatory SIL Provider Registration: A Landmark Change for Supported Independent Living Alongside the new planning framework, 1 July 2026 also marks a critical date for Supported Independent Living. From this date, the NDIS Quality and Safeguards Commission is introducing mandatory registration for all SIL providers — including those who have previously operated without registration. This is a significant shift. Until now, the NDIS market has been divided between registered
NDIS 2026 Overhaul: What Mark Butler’s Landmark Announcement Means for Participants — and Why Choosing a Registered Provider Matters More Than Ever
The National Disability Insurance Scheme (NDIS) is undergoing its most significant transformation since its inception — and if you or a loved one rely on NDIS supports, it is vital that you understand what is changing, what it means for your care, and why working with a registered NDIS provider like Caring Arms Australia is more important now than it has ever been. What Did Mark Butler Announce About the NDIS Today? On Wednesday 22 April 2026, NDIS Minister Mark Butler addressed the National Press Club in Canberra and unveiled a sweeping package of reforms aimed at putting the $50 billion-per-year National Disability Insurance Scheme on a sustainable footing. The government’s actuary had already warned that the scheme was on track to blow out by $13 billion over the next four years — and Minister Butler made clear the status quo was no longer tenable. In his own words: “We can’t afford for the NDIS to continue growing at its present rate, but far more importantly, we can’t afford for the NDIS to fail.” Here is a breakdown of the key changes announced: Slower Growth Targets — From 10% Down to 2% Currently, NDIS spending is growing at approximately 10% per year. Minister Butler announced that growth will be wound back to just 2% annually for the next four years, before returning to a target of 5% from 2030. Without this intervention, the scheme was projected to cost taxpayers around $70 billion by 2030. With the new measures in place, that figure is expected to be brought down to approximately $55 billion — a saving of around $15 billion. Around 160,000 Participants May Be Transitioned Off the NDIS One of the most significant — and controversial — elements of today’s announcement is that approximately 160,000 NDIS participants are expected to be moved off the scheme. Minister Butler acknowledged this group is likely to include many people with autism or developmental delays who have “lower support needs.” These individuals will instead be directed towards other government services, such as early intervention programs under the existing Thriving Kids initiative, which runs from October 2026 through to January 2028. This is a significant shift. The NDIS was originally designed to support Australians with significant and permanent disability — and the government says it has expanded well beyond that original scope. Mandatory Provider Registration Expanded to Higher-Risk Supports This is a change that directly affects the quality and safety of care for thousands of Australians. Minister Butler confirmed that mandatory provider registration will be expanded to cover providers delivering higher-risk supports — with personal care explicitly named as one of those categories. This builds on legislation already passed by Parliament. The NDIS Amendment (Integrity and Safeguarding) Bill was passed on 1 April 2026, strengthening the regulatory powers of the NDIS Quality and Safeguards Commission and introducing significantly higher penalties for providers who breach their obligations or supply false information. For participants, this is critically good news. It means that providers delivering personal care and other high-risk supports will now be subject to strict auditing, quality checks, and worker screening requirements — rather than operating outside any formal oversight framework. A New Digital Payment System to Crack Down on Fraud Minister Butler announced the rollout of a new real-time digital payment system designed to prevent fraud across the scheme. Under this model, providers will need to register themselves in the system and provide verified evidence of their work before being paid. This replaces the longstanding “pay now, check later” approach that has allowed fraudulent billing — including invoicing for services never delivered — to cost the scheme hundreds of millions of dollars. The NDIA will also crack down on “ghosting” of invoices, where participants are billed for services they never received. This is a direct consumer protection measure that benefits genuine participants. Spending on Intermediaries Cut by 30% Spending on third-party intermediaries — such as certain plan management and coordination services that add administrative cost without direct participant benefit — will be cut by 30%. The goal is to redirect funding toward direct, high-quality supports for participants rather than administrative overhead. Quality Providers to Be Shortlisted for Participants In a move that directly rewards excellence, Minister Butler confirmed that quality providers will be shortlisted for NDIS participants to choose from. This means registered, compliant providers who consistently deliver high-quality services will gain greater visibility and access within the NDIS marketplace — while those who cannot demonstrate quality service delivery will find it harder to operate. What Does This Mean for NDIS Participants? For many participants, today’s announcement will bring mixed feelings. The prospect of 160,000 people moving off the scheme is genuinely concerning, and advocacy groups have raised important questions about what alternative supports will be available. However, for participants who remain on the NDIS, these reforms are designed to ensure the money in your plan goes further, that the providers you work with are properly vetted, and that fraud — which has drained funds away from people who genuinely need them — is stamped out. The clearest message from today’s announcement is this: the era of unregulated, unaccountable NDIS service delivery is coming to an end. Registered providers who meet strict quality and safety standards will become the gold standard — and for good reason. Why Choosing a Registered NDIS Provider Like Caring Arms Australia Matters More Than Ever At Caring Arms Australia Pty Ltd, we have always believed that genuine, accountable, person-centred care is the foundation of everything we do. We are proud to confirm that Caring Arms Australia is a fully registered NDIS provider, meeting all requirements set by the NDIS Quality and Safeguards Commission. What does that mean for you as a participant or a family member? Peace of mind through accountability. As a registered provider, Caring Arms Australia undergoes rigorous independent audits and is held to the NDIS Practice Standards — the national benchmarks for service quality and participant safety. You can trust that every support we deliver has