States tell Albanese government that NDIS changes could mean people with disabilities are shifted into hospitals

Australian states and territories have jointly warned the Albanese government that proposed changes to the National Disability Insurance Scheme (NDIS) could lead to people with disabilities being shifted into hospitals. The ministers stated they cannot deliver "like-for-like services" for the estimated 240,000 participants expected to be removed from the scheme by 2031. The Albanese government's proposed NDIS bill aims to significantly slow the growth of the $50 billion annual scheme by reducing budgets and eligibility starting in 2028. This legislative push is intended to curb the scheme's expansion, but state and territory ministers are concerned about the capacity of existing health and social services to absorb individuals exiting the NDIS without a comparable level of support. The ministers' joint statement highlights a potential strain on hospital systems and other public services if adequate transition plans and alternative support structures are not established for those exiting the NDIS. The proposed overhaul seeks to manage the scheme's financial trajectory, but the implications for the individuals reliant on its services remain a significant point of contention between federal and state governments.