Australia to remove 160,000 people from NDIS amid eligibility overhaul

The Australian government has announced significant changes to the National Disability Insurance Scheme (NDIS), aiming to reduce participant numbers by at least 160,000 by 2030.

The reforms focus on altering eligibility criteria and controlling the scheme's rapid cost growth.

Federal Health and NDIS Minister Mark Butler revealed the overhaul during a speech at the National Press Club in Canberra.

The current participant count of approximately 760,000 is expected to decrease to around 600,000 by the end of the decade.

The government plans to shift eligibility assessments from diagnosis-based criteria to evaluations of functional capacity.

This change is intended to exclude Australians with lower support needs or higher functional capacity from the scheme.

In addition to eligibility adjustments, the scheme's growth rate will be capped at 2% annually until 2030, down from previous projections of 5-6%.

This measure aims to curb annual plan inflation and reduce overall expenditure.

The NDIS, currently a $50 billion program, is forecast to cost $70 billion by 2030 without intervention.

The reforms are expected to bring this figure down to about $55 billion, ensuring the scheme's sustainability.

The government will also expand mandatory registration requirements for service providers, particularly those involved in higher-risk activities such as personal care and supports in closed settings.

The goal is to have 90% of payments directed to registered providers.

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