Thousands to Lose Vital Support
People with Disability Australia (PWDA) has issued a stark warning about the Federal Government’s proposed changes to the National Disability Insurance Scheme (NDIS), stating that the overhaul will lead to widespread harm within the disability community.
Newly released government modelling shows over 241,000 current NDIS participants could be removed from the scheme within four years under new eligibility criteria. Projections also indicate a decrease of nearly 350,000 participants by 2031.
Mx Megan Spindler-Smith, Acting CEO of PWDA, emphasised the anxiety these figures have caused in the disability community, saying, “People with disability are overwhelmed looking at these numbers and wondering how they will fill the gaps.”
Impact of Support Cuts
The proposed cuts to social and community participation supports are projected to save $13.2 billion over four years. However, these are critical for individuals to safely leave their homes, work, study, and maintain social connections.
“A lot of people hear ‘social and community participation’ and think recreation or lifestyle funding,” Mx Spindler-Smith explained. “These are actually supports that allow people to leave home safely, get to work, attend university, maintain relationships, parent their children or avoid becoming completely isolated.”
PWDA has expressed concern that the changes risk reinstating the very isolation and segregation the NDIS was intended to eliminate. Those with psychosocial disabilities, Down syndrome, and visual impairments are expected to be disproportionately affected.
According to PWDA, the NDIS was designed to move Australia away from segregation and institutionalisation. Stripping away supports that facilitate community participation counteracts this goal, leaving individuals isolated and confined to ‘disability only’ settings.
The organisation also highlighted the lack of alternative systems and safeguards. Parliament is being asked to approve the reforms without knowing who will lose support or what replacement systems will be available.
Mx Spindler-Smith stated, “It is not an overstatement to say that this directly takes away from the safe and quality life every Australian deserves.”
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Last updated: 29 June 2026, 11:58 am
