Government pushes through NDIS reform bill aimed at cutting costs and fraud

The Senate passed a sweeping reform of the National Disability Insurance Scheme after Labor secured the support of the Coalition, adopting 63 amendments aimed at curbing fraud and improving fiscal sustainability. Health Minister Mark Butler described the scheme as a "soft target" for dishonest actors and said the changes will introduce tougher criminal and civil penalties for providers, along with stronger whistleblower protections.

NDIS Minister Jenny McAllister said the legislation creates an escalation pathway for high-risk participants and allows continuous-care recipients to apply for plan variations to avoid service cuts. A new eligibility framework, based on functional assessments rather than diagnosis, is expected to lower the participant count from roughly 760,000 to 600,000 by 2030, though details are not spelled out in the bill. The Greens criticised the reforms as a threat to disability rights, and Queensland Minister Amanda Camm was approached for a response. The government also pledged to address an unintended "widow tax" from recent negative-gearing changes as part of the broader deal with the Coalition.