The Australian Labor government, led by Health and NDIS Minister Mark Butler, announced significant changes to the National Disability Insurance Scheme (NDIS). Starting January 1, 2028, eligibility will be determined by standardized assessments of functional capacity rather than diagnosis. This change aims to refocus the NDIS on supporting individuals with significant and permanent disabilities. However, many current participants are left uncertain about their future eligibility as the National Disability Insurance Agency (NDIA) works to define the parameters of functional capacity assessments.

To support individuals who may lose NDIS coverage, two new programs will be launched: the Thriving Kids program, which will assist children under nine with additional needs, and Foundational Supports, details of which are still being finalized. Concerns have been raised about ensuring consistent service quality across Australia, with fears of a 'postcode lottery' in support availability.

Additionally, the government has not yet confirmed whether there will be mechanisms for participants to appeal decisions regarding their assessments. Butler indicated that he understands community interest in this issue. To address fraud within the NDIS, the government will implement digital payments and risk-based registration for providers, starting July 1, 2024. This initiative aims to enhance transparency and accountability in the system.