The Albanese government’s proposed National Disability Insurance Scheme (NDIS) reforms have been labeled as “retrogressive” and misaligned with a landmark independent review by a Labor-led parliamentary committee. The joint human rights committee released a 57-page scrutiny report on Friday, examining the proposed changes ahead of a separate Senate inquiry report due next week.
Human Rights Concerns Raised
The committee, chaired by Labor, questioned the human rights implications of reducing access for over 200,000 participants, potentially leaving many without adequate support. The report highlighted that the government’s proposals may violate Australia’s international obligations, including the “duty to refrain from taking retrogressive measures.”
“The statement of compatibility states that the measures are aimed at preserving the long-term sustainability of the NDIS and this may directly or indirectly limit the range of health-related supports or funding accessed through the NDIS for some individuals,” the report stated. “As such, it appears the measures would be retrogressive and thus limit these human rights.”
Proposed Changes and Impact
Under the proposed changes, a legal framework to determine NDIS eligibility based on “substantially reduced functional capacity” will be introduced from 2028. Government modelling suggests this could remove about 241,000 people from the scheme by mid-2031, reducing total participants to 600,000.
The committee acknowledged the objective of ensuring financial sustainability but questioned whether mainstream support services would be available and accessible for those removed from the NDIS. “Questions therefore arise as to whether this is the case and whether the measure would be effective to achieve the stated objective in practice,” the report said.
Misalignment with NDIS Review
The committee also noted that the measures did not appear to align with the findings of the 2023 NDIS review, despite the bill citing it as justification. The proposed changes include tightening the definition of permanence, requiring potential participants to exhaust all available treatment before gaining NDIS access.
The report criticized the lack of consideration for individual circumstances, such as geography or financial situation, when determining treatment appropriateness. “It is unclear why, when determining whether treatment is appropriate, regard is not had to a range of factors, including the affordability and accessibility of that treatment for that individual,” the report said.
Minister Defends Plan
NDIS Minister Mark Butler defended the proposal, calling it “a very well-developed plan that thought carefully about the way in which we could get the NDIS back on track, secure it for the long term, but very much still with people with disability at its centre.” He noted the government is closely watching the inquiry and will consider its response once the report is delivered.
The Senate inquiry’s report is expected to be published on Tuesday 16 June. Experts, advocates, and providers have criticized the bill, claiming the short reporting period did not allow sufficient scrutiny.
