Senate backs sweeping NDIS overhaul as Butler says reforms should pass tonight
Australia’s Senate is set to hand Health Minister Mark Butler a win on a major overhaul of the National Disability Insurance Scheme, after the government
Australia’s Senate is set to hand Health Minister Mark Butler a win on a major overhaul of the National Disability Insurance Scheme, after the government and Coalition joined forces to push the reforms through. The changes, aimed at slowing the scheme’s growth and tightening fraud controls, are expected to pass tonight.
The bill already cleared the upper house on Tuesday evening with 28 votes to 12. Quick work. The Albanese government says a package of 63 amendments will make the NDIS more sustainable and deliver $37.8 billion in savings over four years.
Big cut, big pushback
Disability advocates have warned the reforms move “too far, too fast”. Their concern is blunt: people who rely on the scheme could be left with less support, or none at all, while new arrangements are still being built.
Earlier drafts of the overhaul pointed to a sharp reset of the $50 billion scheme, with the federal government expecting about 300,000 people to be kicked off or prevented from entering under the proposed model. The plans also call for more services to be delivered through state-run supports that do not yet exist in full.
States under pressure
The politics have not been simple. The government has linked broader funding promises to state cooperation, while warning that the NDIS cannot keep expanding at its current pace. Treasurer Jim Chalmers has said the scheme is growing too fast for Australians to afford.
Mark Butler has made the same case in public, arguing the system costs too much and is growing too quickly. The government has also floated stricter registration rules for more providers, including higher-risk services such as personal care, daily living supports and work in closed settings.
Some economists have warned the reforms could trigger layoffs. And the stakes are wide. The NDIS remains one of Australia’s biggest social programs, with the government trying to pull growth back from roughly 10% a year to a far slower pace.
The Senate vote last night came after the government unveiled 63 changes to its bill, with ministers saying the package would rein in spending and crack down on fraud. The final tally stood at 28 in favour and 12 against.
