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Senate probes NDIS overhaul, warning of funding cuts, carer strain and unchecked ministerial powers

A Senate inquiry examined proposed NDIS law changes that would slash funding, expand ministerial cut powers, and raise concerns about safety, carer burnout and fraud.

The Senate’s six-day inquiry into sweeping amendments to the National Disability Insurance Scheme revealed deep divisions over the government’s cost-saving agenda, which promises more than $30 billion in savings over four years. Proposed changes would let the disability minister order percentage reductions to any funding stream, potentially slashing community participation budgets by 50% and capacity-building allocations by 10%.

Witnesses, including Disability Discrimination Commissioner Rosemary Kayess and lived-experience participant Andrew, warned that such cuts could confine people to unsafe or isolated settings and expose them to abuse. While fraud prevention was a shared goal, experts argued the bill does not go far enough to tackle scheme abuse. The draft also redefines parental responsibilities, expecting parents to provide “substantial care” comparable to professional support, prompting concerns about carer burnout voiced by Skye Kakoschke-Moore.

The upcoming Thriving Kids program aims to replace NDIS support for children with mild needs, yet advocates say services are not yet in place. Critics such as George Taleporos and Naomi Anderson labeled the ministerial cut powers “dangerous” and lacking accountability. The committee will issue its findings on August 14, after which the Senate will vote, requiring support from either the Coalition or the Greens, who have expressed opposition.

Why it matters

The outcome will shape disability support, safety and family burden for hundreds of thousands of Australians.

In this story

NDISfunding cutscarer burnoutministerial powersfraud crackdownsafety concernsThriving Kidsdisability rights