Independent MPs warn NDIS funding cuts risk leaving vulnerable Australians without support

Federal Independent MPs have called on the Albanese Government to provide greater transparency and safeguards for Australians living with disability as the National Disability Insurance Scheme (NDIS) comes under scrutiny ahead of the 2026–27 Budget. 

The group, led by Kooyong MP Dr Monique Ryan, also includes Warringah MP Zali Steggall, Curtin MP Kate Chaney and Bradfield MP Nicolette Boele.  

Independent MPs have formally written to federal ministers Mark Butler and Jenny McAllister outlining concerns about potential NDIS funding reductions, the impending rollout of an automated plan-setting tool, and the impact of cuts to the scheme on participants. 

Since its establishment in 2013, the NDIS has transformed the lives of Australians with permanent and significant disability. However, demand has grown faster than anticipated, in part due to gaps in support elsewhere for those with mild to moderate needs. 

While the Albanese Government has slowed spending growth, the independent MPs warn that reducing access or funding before alternatives are in place risks leaving vulnerable Australians without support. 

The MPs are particularly concerned at the delayed rollout of the Thriving Kids program, which is not expected to begin until October, and will not operate at scale until 2028.  

They are calling on the Albanese Government to ensure foundational supports are fully operational before eligibility for the NDIS is tightened. It must also legislate ‘no worse off’ protections for children transitioning to Thriving Kids, respond in full to the independent review, and release modelling underpinning any proposed funding changes. 

Independent Member for Kooyong, Dr Monique Ryan MP: said

"The most vulnerable in our community shouldn’t be penalised for flaws in its design structure as the government works to ensure the sustainability and integrity of the NDIS. 

"The current process is cloaked in secrecy. The government has not even formally responded to the report it received at the end of 2023 from the independent review it appointed. 

"The government needs to be transparent and level with the community rather than increasing alarm and anxiety among NDIS participants, their families, partners, and carers. 

"There is already real distress in the community because of a growing pattern of sudden and significant reductions of NDIS plans introduced without adequate explanation, particularly for children in the foundational supports pathway. 

“Thriving Kids is not yet fully designed, and it’s already been delayed once. State and territory implementation plans remain incomplete and opaque. Vulnerable children can’t be transitioned out of a working scheme into one that does not yet exist.” 

Independent Member for Warringah, Zali Steggall MP: said

“Disability and complex needs are not budget line items. Every cut to the NDIS affects someone’s life – whether it’s a child learning to speak, a young adult finding independence or a family barely holding on in an impossibly difficult situation. 

“Thriving Kids has been delayed until October 1. We can’t transition children from a system that works into one that doesn’t exist yet. Any cuts now would leave vulnerable children without support and risks forcing service providers to close. 

“The Albanese Government must be fully transparent on its intentions around the NDIS. Balancing the budget should not come at the expense of the most vulnerable in our community.” 

Independent Member for Curtin, Kate Chaney MP: said

“While protecting the integrity of the NDIS is vital for its ongoing sustainability, the Government is at risk of throwing the baby out with the bathwater. 

“Parents and recipients are very concerned about losing hard-won and much-needed support with no clear alternative available. Foundational supports must be operational before children are transitioned off the NDIS to avoid our most vulnerable bearing the brunt of inadequate planning and implementation.” 

Independent Member for Bradfield, Nicolette Boele MP: said

“You can’t cut your way to efficiency when the system itself is the problem. Every week, local families contact my office because an administrative error has disrupted their support and left them scrambling. 

“If we want to have a serious conversation about the sustainability of the NDIS, we need to be clear that the pressure isn’t just coming from demand - it’s coming from the system’s own shortcomings. Until they’re fixed, more cuts will only punish the very people this system was designed to help.”