Updated on June 11, 2026
The National Disability Insurance Scheme (NDIS) is undergoing its most significant transformation since 2013. From 1 July 2026, sweeping reforms will reshape how participants access, manage, and utilise their NDIS funding. These changes stem from the NDIS Amendment (Getting the NDIS Back on Track No. 1) Act 2024, which received Royal Assent in October 2024. For participants across Australia, understanding these reforms is essential to protecting your plan and maintaining the supports you rely on.
Overview of the July 2026 Reform Package
The Australian Government has introduced the most substantial overhaul of the NDIS since the scheme began. These reforms aim to address concerns about scheme sustainability, cost growth, and consistency in decision-making (Hummell et al., 2024). The changes affect how plans are structured, how assessments are conducted, what supports can be funded, and how participants interact with the NDIS system. The PACE system—the new digital platform—began rolling out in October 2024, and by July 2026, the majority of participants are expected to be operating under the new framework (Dedicated Plan Management, 2026).
New Budget Structure: Stated Supports vs Flexible Budget
The current three-category budget structure is being replaced with a simpler two-part model. Stated Supports are specific items with a set dollar amount allocated for a defined purpose, including assistive technology, home modifications, SDA, and SIL. Flexible Budget is a pool of funding you can use across eligible supports, including support worker hours, therapy sessions, community access, and transport (Dedicated Plan Management, 2026). This restructure aims to provide greater clarity about which supports are fixed and which offer flexibility.
Quarterly Funding Periods Replacing Annual Lump Sums
Instead of receiving your entire budget as a single annual lump sum, funds will be released quarterly. If your quarterly allocation runs out before the period ends, claims will be rejected until the next quarter begins. The NDIS states this change is not intended to reduce flexibility but to help participants avoid large underspends or overspends. However, budgeting and pacing your spending throughout the year becomes significantly more important.
The PACE System: New Participant Portal and Case Management
PACE (the Participant and Community Engagement system) is the new NDIS computer system replacing the old platform (Dedicated Plan Management, 2026). PACE powers the entire new participant pathway, including how plans are created, how budgets are calculated, and how claims are processed. The new system includes a redesigned participant portal where you can view your plan, track your budget, and manage your supports. PACE also enables certain plan adjustments to be made more quickly without requiring a full plan reassessment.
Navigator Role Replacing Local Area Coordinators
Navigators are a new role being introduced to help NDIS participants understand their plan, connect with services, and access mainstream supports. They provide Pre-Access Support (helping people applying to join the NDIS), In-Scheme Navigation (helping participants understand their plan and find providers), and Mainstream Connections (helping participants access services outside the NDIS). Critically, Navigators are not replacing plan managers. Navigators provide guidance and connection, whilst plan managers handle the financial side: processing invoices, paying providers, and tracking budgets.
New I-CAN Support Needs Assessment
The NDIS is replacing the old planning meeting process with a standardised assessment tool called I-CAN (Instrument for Classification and Assessment of Support Needs). A trained assessor will use a structured framework to evaluate your functional capacity across twelve key life domains, including Daily Living & Self-Care, Communication, Mobility, Social & Community Life, Work & Employment, and Money & Budgets. The goal is consistency, though concerns remain about whether a standardised tool can adequately capture the complexity of individual disability experiences (D’Cruz et al., 2025). Preparation is critical. Focus on describing your worst days, not your best, and bring evidence from therapists, support workers, and doctors.
Graduated Provider Registration Changes
The Government is introducing a new graduated provider registration system with three tiers: Enrolled Providers (lowest-risk supports), Registered Providers (moderate-risk supports), and Advanced Registered Providers (highest-risk supports like SIL and SDA). From 1 July 2026, every SIL and platform provider will be required to be registered with the NDIS Quality and Safeguards Commission and will be subject to high quality standards, independent audits, and worker screening checks (Gilbert + Tobin, 2026). For plan-managed participants, this means more providers will have accountability whilst you retain flexibility to choose from a wider range of providers.
The April 2026 Announcement: 160,000 Participants Potentially Losing Funding
On 22 April 2026, NDIS Minister Mark Butler announced another major package of reforms. The Government is proposing to cut scheme numbers by approximately 160,000 participants by the end of the decade, introduce standardised functional assessments with eligibility no longer granted by diagnosis alone, reduce average plan value from around $31,000 to $26,000 over the next two years, eliminate plan rollovers, and implement cuts of around 30% to social and community participation funding starting 1 July 2026 (Dedicated Plan Management, 2026). Legislation is expected to pass by the end of 2026, and eligibility reassessments are scheduled to begin from January 2028. This represents a fundamental shift from a rights-based insurance model towards a more restrictive approach (Chinnappa et al., 2025).
What Participants Should Do NOW to Protect Their Plans
- Secure a plan manager you trust. With new spending rules and debt recovery provisions, having a knowledgeable plan manager is critical. A good plan manager checks every invoice against NDIS guidelines before processing it to protect you from accidentally spending on non-eligible items.
- Gather your evidence. The new I-CAN assessment focuses on your functional capacity, not your diagnosis. Collect reports from therapists, support workers, and doctors that describe what you cannot do and how much support you need.
- Understand your current spending. Review how you currently use your NDIS funding to help you plan for the new budget structure and quarterly funding periods.
- Check your supports are NDIS-eligible. Under the new NDIS Support List, some items may no longer be funded. The NDIS now has debt recovery powers, meaning if funds are spent on items not classified as NDIS supports, the NDIS can seek to recover those funds.
- Stay informed. Regularly check the official NDIS website and maintain contact with your support coordinator or plan manager.
Centre Disability Support: Your Partner Through the Changes
Navigating these reforms can feel overwhelming, but you do not have to face them alone. Centre Disability Support has been helping participants across Brisbane, Perth, Melbourne, Sydney, Gold Coast, Rockhampton, Gladstone, Townsville, and Toowoomba understand and adapt to NDIS changes.
Contact us today on 1300 433 661 to discuss how we can support you through the July 2026 changes and beyond. Our compassionate, experienced team is here to ensure you maintain choice, control, and dignity as the NDIS evolves.
RELATED ARTICLES
Am I Eligible for the NDIS? The Complete 2026 Eligibility Checklist
How SIL Adapts To Individual Needs and The July 2026 Regulatory Change
References
- Centre Disability Support. (2026). About us. https://centredisabilitysupport.com.au/about-us
- Chinnappa, A., Soldatic, K., & Somers, K. (2025). The cost of the National Disability Insurance Scheme: Australia’s print-media discourse. Australian Journal of Social Issues, 60(1), 3–21. https://doi.org/10.1002/ajs4.70063
- D’Cruz, K., Hines, M., Bragge, P., Ponsford, J., & Stolwyk, R. (2025). Understanding the NDIS experience: A qualitative study on participant perspectives. Brain Impairment, 26(1), Article IB24103. https://doi.org/10.1071/ib24103
- Dedicated Plan Management. (2026). NDIS changes July 2026. https://dedicatedplanmanagement.com.au/ndis-changes-july-2026/
- Gilbert + Tobin. (2026, April 8). NDIS in motion – April 2026. https://www.gtlaw.com.au/insights/ndis-in-motion-april-2026
- Hummell, B. M., Crosbie, J., & Fisher, K. R. (2024). Agendas of reform: Continuity and change in Australia’s National Disability Insurance Scheme (NDIS). Social Policy and Society, 23(3), 531–549. https://doi.org/10.1017/s1474746424000101
