Senate Crossbenchers Urge Caution on NDIS Overhaul Amid Concerns Over Participant Support Cuts

Crossbenchers have raised serious concerns over the Albanese government’s proposed overhaul of the NDIS, describing the reforms as progressing “too far, too fast” as legislation appears poised to pass parliament as early as next week.

The Greens and independent ACT senator David Pocock delivered scathing assessments of the bill, warning it could enable blunt and indiscriminate cuts to individual budgets supporting over 770,000 Australians with disabilities, following the release of a final Senate inquiry report on Friday.

While the Labor-chaired committee recommended the bill pass, Greens senator Jordon Steele-John warned the proposals would be “devastating to the lives of disabled people and their families”.

The legislation forms part of the government’s strategy to restore financial sustainability to the NDIS and save $37.8 billion over four years by tightening eligibility criteria and requiring all participants to undergo independent functional assessments beginning in 2028.

The bill would also grant NDIS minister Mark Butler authority to reduce individual funding allocations by as much as 99%. Government officials have indicated a planned 50% reduction in budgets for social, civic and community participation activities.

Without these reforms, the government estimates the $52 billion annual scheme could surge to $117 billion annually within a decade.

The Greens have acknowledged some reforms may be necessary to improve NDIS effectiveness, but advocate for alternative funding solutions such as implementing a gas export tax.

Senator Steele-John stated: “The choice this Labor government is making is to strip life-changing supports from disabled people instead of generating additional revenue through taxing gas exports reveals their priorities clearly.”

“This government prioritizes corporate profits over the lives of disabled people.”

Guardian Australia previously reported that 241,000 NDIS participants will transition to state-run programs by June 2031 under the functional capacity test, keeping total participants at approximately 600,000.

An additional 105,000 individuals will be barred from entering the scheme during this period.

Those removed from the program will receive support through state and territory initiatives jointly funded by the Commonwealth.

Senator Pocock emphasized that no participant should be removed from the NDIS until replacement programs are properly funded, operational and accessible, pledging continued parliamentary oversight.

He added: “The true measure of these changes will be found in the lived experiences of people with disability. They must remain at the centre of all future decisions.”

Coalition senators also voiced concerns about insufficient attention to fraud prevention and integrity issues within the NDIS.

Government officials anticipate reaching an agreement with the opposition early next week to secure passage of the bill through the Senate.

Disability advocacy organizations have strongly criticized the government’s amendments, warning that caregiving responsibilities will shift from the scheme to families, disproportionately affecting women.

Sophie Cusworth, chief executive of Women With Disabilities Australia, called for a comprehensive gender impact assessment of the legislation.

“You cannot claim to champion women while passing laws that endanger women’s safety, wellbeing, health and economic security,” Cusworth said on Friday.

“That’s not gender equality. That’s neglect.”

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