Crossbenchers warn Labor's NDIS overhaul is moving 'too far, too fast'

Crossbench senators and the Greens have criticised the Albanese government's proposed overhaul of Australia's National Disability Insurance Scheme, warning that the changes could move "too far, too fast". Their comments came after a final Senate inquiry report was released on Friday afternoon, as the bill to curb the scheme's growth appeared set to pass parliament as early as next week. The debate centres on a program that supports more than 770,000 Australians with disabilities and is currently valued at $52bn.

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The inquiry report was delivered by a Labor-chaired committee, which recommended that the bill pass. But Greens senator Jordon Steele-John and independent ACT senator David Pocock issued sharply different assessments, arguing that the reforms could allow blunt and indiscriminate cuts to individual budgets. The government says the package is part of its plan to get the scheme "back on track" and save $37.8bn over four years.

It would tighten eligibility criteria and introduce independent functional assessments for all participants from 2028. The legislation would also give the NDIS minister, Mark Butler, power to reduce funding categories for individuals by up to 99%. The government has already said it will apply a 50% reduction in individual participant budgets for social, civic and community participation.

Without the changes, officials estimate the scheme's annual cost could rise from $52bn to $117bn within a decade. That projection has become central to the government's case for reform, while critics say the proposed savings risk reducing support for people who rely on the scheme for daily life. The dispute matters because the NDIS is one of Australia's largest social programs and a major long-term budget pressure.

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The government's plan is aimed at slowing growth in spending, but it has also triggered a wider argument about how disability support should be funded and who should bear the cost. The Greens have said some changes are needed to improve the scheme, but they argue the government should consider raising additional revenue, including through a gas export tax, rather than cutting support. Steele-John said the choice facing the government was to "rip life-changing supports away from disabled people" instead of taxing gas exports.

He said that approach showed the government's priorities clearly, and accused it of choosing corporate profits over the lives of disabled people. The final inquiry report therefore leaves the bill in a politically sensitive position, even though the committee recommended it proceed. The debate also reflects a broader tension between fiscal restraint and the level of support available to people with disability.

The report also points to significant changes in who will remain eligible for the scheme over time. Previous reporting has indicated that 241,000 participants could be shifted off the NDIS by June 2031 after the introduction of the functional capacity test, while an additional 105,000 people could be prevented from entering. What remains unclear is how the Senate will handle the bill in the final stages and whether any amendments will be made before a vote.

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