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From 1 October 2026, NDIS budgets for community participation and daily living skills supports are being reduced under new legislation, but the change is phased in gradually as each participant’s plan is reassessed or renewed, not applied to everyone overnight.
What Happened
The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Act 2026 received Royal Assent on 20 August 2026. Under it, budget allocations for social, economic and community participation supports are being reduced by around 50%, and budget allocations for improved daily living skills supports by around 10%. The Department of Health, Disability and Ageing confirms these changes apply only to those two support categories, not to any other part of a participant’s plan, and are being introduced gradually over 12 months as plans are created or reassessed from 1 October 2026, or renewed from 1 February 2027.
Why It Matters
Participants keep using their current plan and supports until their own plan is actually reassessed or renewed, so this is not an immediate, universal cut on 1 October. But it is a real, legislated reduction that will progressively affect a large number of NDIS participants and their families over the next year as reassessment dates arrive.
Who Is Affected
NDIS participants who use funding for social, economic and community participation, or for improved daily living skills supports, along with their families and carers.
What to Do / What to Watch
Check when your own plan is next due for reassessment or renewal, since that is the point the new funding levels will apply to you, not 1 October itself. The Department of Health, Disability and Ageing has confirmed participants will be notified ahead of their reassessment or renewal. Supports essential to critical care and daily living needs are not affected by this specific change.
Official Source / Verification
This article is based on the Australian Government Department of Health, Disability and Ageing’s official information on changes to the NDIS from the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Act 2026.
This article is general information only. For advice about your own NDIS plan, contact the NDIA or your plan manager directly.
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