NDIS Participant Eligibility Reforms: What You Need to Know

If you are someone who is thinking about applying for the NDIS, or you know someone who may need disability support in the future, you may have heard that changes are coming.

The Australian Government is introducing reforms to how people become eligible for the NDIS. For many people, these changes can feel confusing or worrying, especially when disability supports are essential to everyday life.

This blog explains what the reforms are around participant eligibility, why they are happening, and what they mean for people who are already on the NDIS as well as to those applying for the first time.

Why is the NDIS Changing Eligibility Rules?

The NDIS has grown much faster than originally expected. It now supports many more people and costs significantly more than was first planned. Governments have said that without changes, the scheme may not be financially sustainable in the long term.

The aim of the eligibility reforms is to make access decisions clearer and more consistent, while ensuring the NDIS can continue to support people who genuinely rely on it not just now, but long into the future.

The reforms are designed to:

• Focus NDIS funding on people with permanent and significant disability

• Make it clearer what the NDIS does and does not fund

• Strengthen other systems, such as health and education, to better support people with lower support needs

These changes are being introduced gradually, recognising that uncertainty can be stressful for people with disability and their families.

What Is Changing About NDIS Eligibility?

1. More Focus on How Disability Affects Daily Life

One of the biggest changes is a shift away from relying mainly on diagnosis, and towards how a disability affects day-to-day life.

Having a diagnosis alone will no longer be enough. Applicants will need to show how their disability significantly impacts daily activities, such as mobility, communication, self‑care, learning, or social participation, even after treatments and supports are considered.

Many current NDIS participants worry that they may need to “prove” their disability all over again. In practice, what matters most is clearly showing how disability affects day-to-day life, which is something many participants and families already do well through reports and evidence.

2. A Clearer Definition of “Permanent” Disability

Eligibility will also rely more heavily on whether an impairment is considered permanent.

For new applicants, this may mean showing that:

• Available treatments or therapies have already been tried, or

• There are no other reasonable treatments likely to significantly improve the condition

  
  

This change is intended to ensure NDIS funding is directed toward long‑term disability needs, rather than conditions expected to improve with treatment.

3. Linking Supports to Accepted Impairments

Another key reform already in progress is that NDIS funding must relate directly to the impairments a person was accepted under (for example intellectual, cognitive, neurological, sensory, or physical).

From 1 January 2025, participants receive a Notice of Impairments, which lists the impairment categories they were found eligible for. NDIS funding is then limited to supports that relate to those accepted impairments.

Over time, this approach is also being reflected more clearly in plan reviews and funding decisions.

4. Changes for Young Children

For children aged 8 and under with lower to moderate support needs, governments are introducing Foundational Supports outside the NDIS, often referred to as the Thriving Kids.

From 2028, some children who might previously have entered the NDIS may instead receive supports through mainstream health, education, and community services. Children with higher and more complex needs will continue to be eligible for the NDIS.

Children already on the NDIS will not be automatically removed as a result of these changes.

How Do These Eligibility Reforms Affect Current Participants vs New Applicants?

This is one of the most common questions people ask, and the answer depends on whether you are already on the NDIS or applying for the first time.

For Current NDIS Participants

If you are already an NDIS participant, your eligibility does not change immediately. You will not suddenly lose access just because new rules are being introduced.

Changes are generally applied:

• At your next scheduled plan reassessment, or

• If you request a significant change to your plan

Understanding how your plan funding relates to your accepted impairments can make these reassessments easier to navigate. Having up‑to‑date evidence that clearly explains your daily support needs can also help.

For more detail on how reassessments are changing, see our NDIS Plan Reassessments blog which explains what to expect as reforms continue to roll out.

For New NDIS Applicants

For people applying to the NDIS for the first time, the eligibility process will become more detailed and evidence‑focused.

New applicants will need to:

• Clearly show how their disability affects everyday functioning

• Provide evidence that the disability is permanent

• Explain why NDIS support is needed, rather than supports from other systems

For families of young children, this may also involve being directed to early supports outside the NDIS if needs are assessed as lower or moderate.

Final Thoughts

It is completely understandable to feel uneasy when rules change, especially when disability supports are essential to everyday life. If you are thinking about applying for the NDIS, or supporting someone through the process, understanding these eligibility reforms early can help reduce uncertainty and allow you to prepare.

These reforms aim to balance sustainability with fairness, so the NDIS can continue to support people with significant and ongoing needs, both now and in the future.

Most changes are being introduced gradually, with transition arrangements in place. Many details are still being developed, and governments have stated that people will not be left without essential support as the system evolves.

At First2Care Plan Management, we work closely with NDIS participants and families, supporting them to understand how these changes to NDIS rules affect eligibility and plan funding over time.