One of the heads of the disability royal commission has expressed fears that proposed changes to the National Disability Insurance Scheme (NDIS) will lead to greater isolation and segregation for Australians, ignoring a key lesson from the landmark inquiry.
Concerns Over Social Participation Cuts
Alastair McEwin, a former Australian disability discrimination commissioner, has called on the Albanese government to halt its planned overhaul of the $50 billion-per-year NDIS amid growing concern within the disability community. His warning comes as the government's own NDIS reform advisory committee issued a "brutal" assessment during the first meeting of federal, state, and territory disability ministers since legislation was introduced to parliament.
Labor is pursuing drastic measures to contain the scheme's surging costs, aiming to save $36.2 billion over four years. These measures include tightening eligibility criteria, subjecting participants to standardised assessments, and cutting budgets for social, civic, and community participation—funding designed to reduce isolation and build independence.
Impact on Participants
Health Minister Mark Butler has argued that the cost of supports has skyrocketed and not all provide value for money. He cited examples of support workers taking participants out only to spend the entire time scrolling on their phones. "That's not community participation. Yes, it's getting out of the house, but we want something more than just getting out of the house," Butler said last month.
McEwin is deeply concerned about the consequences of slashing budgets for social participation, particularly given the evidence he heard as a commissioner overseeing the royal commission into violence, abuse, neglect, and exploitation of people with a disability. The inquiry heard harrowing evidence about the effects of social isolation and segregation, along with proof of the benefits of community inclusion.
"One of the fundamental pillars of why we established the NDIS in the first place was so that people could get out and about into the community. The social and community participation factor is incredibly vital to almost everybody I know who is on the NDIS," McEwin said. "We can’t often quantify or qualify the impact because often it means how you’re feeling from a sense of belonging and inclusion in the community."
Hearing-impaired participants like McEwin use social participation budgets to hire Auslan interpreters, enabling them to better experience public events. "We’re going to see a huge number of people more isolated, more segregated," he warned.
Government Modelling and Funding Cuts
Internal government modelling first reported by Guardian Australia shows that about half of all participants—393,401 people—have funding for social activities in their NDIS plans. That funding for more than 60,000 participants is expected to be halved between October and February 2027, with the remainder cut by the end of next year. The health department estimates the social funding reduction will result in an average 25% reduction for participants, as not everyone spends all their allocated funding.
The government will also establish a $200 million fund to help mainstream and disability organisations run programs. There are no changes to funding for daily living activities such as showering, cooking, and cleaning.
Legislative Overreach and Political Fallout
McEwin expressed reservations about "overreach" in the legislation, particularly new powers allowing the federal minister to cut funding to some supports and make decisions on pricing. The changes will have ramifications for state and territory jurisdictions, which co-govern the scheme with the Commonwealth and are responsible for helping to roll out the Thriving Kids program for children with autism and developmental delay.
Guardian Australia can reveal that disability ministers received what one state source described as a "brutal assessment" of the proposed overhaul from the government's own NDIS reform committee. The committee's co-chairs, El Gibbs and Dougie Herd, warned the changes would harm participants and criticised the lack of consultation on the legislation, according to two sources familiar with Friday's meeting.
A Senate inquiry into the NDIS bill is scheduled to hold public hearings on 9, 10, and 11 June before tabling its findings on 16 June. The Greens oppose the changes, meaning Labor will need to rely on the Coalition's support to pass the legislation.
