If you have watched the news this week, you have likely seen some alarming headlines. On Wednesday, April 22, 2026, NDIS Minister Mark Butler addressed the National Press Club to announce a "reset" of the National Disability Insurance Scheme, aimed at bringing the scheme's growth down to 2% per year.
Headlines warning that "160,000 participants will be removed" or that "average plans will be cut by $5,000" have understandably caused widespread anxiety among participants, carers, and allied health professionals.
At LowCostAT, we want to take a collective deep breath. Structural shifts to the NDIS always cause stress, but knowledge is your best safeguard. Here is a clear, factual breakdown of what the government actually announced, when it happens, and how you can strategically prepare.
What Exactly Was Announced? (The Facts)
The government's goal is to ensure the NDIS remains financially sustainable for future generations, bringing projected costs down from $70 billion to $55 billion by the end of the decade. To do this, they outlined several major shifts:
- A Shift to "Functional Capacity": The NDIS is moving away from granting access based purely on medical diagnosis lists. Instead, eligibility and funding will be based on a "Standardised evidence-based assessment" of a person's functional capacity (how much your disability impacts your day-to-day life).
- Tightening Eligibility: The government aims to reduce participant numbers from the current 760,000 to around 600,000 by 2030. This targets participants with lower support needs or higher functional capacity.
- Alternative Community Supports: To support those transitioning off the NDIS (or those who will no longer be eligible), the government has reserved $10 billion for "Foundational Supports" delivered by states, including a new $4 billion program called Thriving Kids for children under 9 with low-to-moderate autism support needs.
- Curbing Plan Inflation: The government plans to reduce the average participant's yearly plan from around $31,000 to $26,000 (returning to 2023 levels) and limit unscheduled plan reassessments to "exceptional circumstances" only.
- Provider Registration: To combat fraud, mandatory registration will be expanded for providers offering high-risk activities, personal care, and daily living supports.
Why You Don't Need to Panic
While these numbers sound intimidating, it is crucial to understand the context and the timeline. Nothing is changing overnight.
1. The Timeline Has Been Delayed
The government acknowledged that rolling out the new "framework planning" and functional assessments takes time. In fact, following consultation, they announced they are delaying the rollout of the new planning framework until April 1, 2027. You have a full year to prepare your evidence before these new functional assessments begin.
2. It Is A Transition, Not An Eviction
The reduction of 160,000 participants is a target for 2030. It includes people who naturally age out of the scheme, children whose early intervention goals are met, and new applicants who will be redirected to the Thriving Kids program instead of the NDIS. You are not going to wake up tomorrow with your funding suddenly cancelled.
3. You Have Control Over Your "Functional Evidence"
Because the NDIA is shifting its focus to Functional Capacity, the quality of your Occupational Therapy reports matters more than ever. If you can clearly document what you cannot do safely or reliably without support, you protect your funding.
How to Strategically Prepare Your Plan
If average plan budgets are reduced, the way you spend your NDIS funds needs to become highly strategic. Relying heavily on expensive 1:1 support workers for daily tasks may become difficult. This is where Assistive Technology (AT) becomes your greatest asset.
Here is how to prepare for the upcoming changes:
1. Invest in 'Always-On' Independence
If your social or community participation budget is tightened, you need your home environment to support you 24/7. Investing in Low Cost AT is a one-off purchase that builds permanent capacity.
- Instead of relying on a carer to prompt morning routines, a Digital Visual Calendar builds independent executive function.
- Instead of requiring a therapist to co-regulate dysregulation, Sensory Regulation Tools (like noise-cancelling headphones and tactile aids) allow a participant to safely self-regulate at home.
2. Gather Evidence of "Capacity Building"
When you have your next plan review, the NDIA will want to see that your funds are being used to increase your independence. Keep a journal of how your Assistive Technology reduces your reliance on paid human supports. (e.g., "Since purchasing a visual countdown timer, my child transitions to homework independently, reducing the need for support worker intervention.")
3. Maximise Your Current Budget
With legislation coming to limit unscheduled plan reviews, it is vital to ensure you have the tools you need now. If you have unspent Consumables or Low Cost AT funding, use it strategically to purchase the daily living aids that will support your functional capacity long-term.
Frequently Asked Questions About the 2026 NDIS Changes
Is the NDIS kicking 160,000 people off the scheme in 2026?
No, it is not an immediate cut. The government announced a target to reduce participant numbers to 600,000 by 2030. This will be a gradual transition achieved by moving away from diagnosis-based eligibility toward functional capacity assessments, and by redirecting new applicants with lower support needs to alternative community programs like 'Thriving Kids'.
When will the new NDIS functional capacity assessments start?
Following community consultation, the government has announced a delay to the new framework planning rollout. The new support needs assessment process will not begin until April 1, 2027, giving participants time to prepare.
Will my NDIS plan budget be cut by $5,000?
The government aims to bring the average participant's yearly plan cost down from approximately $31,000 to $26,000, aligning with 2023 levels. This does not mean a blanket $5,000 cut for everyone; funding will be based on strict functional capacity needs and a cap on certain social and community participation programs.
What is the Thriving Kids program?
Thriving Kids is a newly announced $4 billion foundational support program for children under 9. It is designed to provide early intervention and community support for children with low-to-moderate needs (such as Autism) outside of the traditional NDIS structure.
How can I protect my NDIS funding after the April 2026 changes?
Focus on 'functional capacity.' Ensure your Occupational Therapy reports clearly document what you cannot do safely without support. Investing your current budget in capacity-building Low Cost Assistive Technology (LCAT) proves that you are actively working towards independence, which aligns with the NDIA's new framework.
We Are Here to Help
At LowCostAT, our mission remains unchanged: to provide affordable, accessible, and life-changing technology to the disability community. We are closely monitoring the Securing the NDIS for Future Generations Bill, and we will continue to ensure our invoices and product descriptions align perfectly with NDIA compliance requirements.
Change is daunting, but by focusing on capacity-building and independent living, you can ensure you and your loved ones continue to thrive.
Recent post