Funding cuts unveiled in the 2026 Federal Budget will see critical disability support limited for thousands of New South Wales residents.
The Federal Government’s 2026 budget has sparked concern after announcing major reforms to the National Disability Insurance Scheme (NDIS) aimed at slowing spending growth.
Currently, the scheme is costing $50 billion annually, which is four times the expected amount. The changes outlined in the budget will see this number reduced by $37.8 billion over the next four years.
Minister for the NDIS, Mark Butler said in a press conference, that the changes to the scheme set out to prioritise daily living, transport to medical appointments and accommodation for people living with disability.
“When we were looking through different ways to manage the cost growth in the NDIS, we were keen to ensure that we could quarantine those more critical areas of support,” Mr Butler said.
The NDIS supports 760,000 Australians with disabilities and reductions in funding will see this number lowered, with around 160,000 people pushed off the scheme and into state-run programs by 2030.
“This scheme was never set up to become a substitute for health and rehabilitation and other treatment that could potentially prevent lifelong disabilit,” Mr Butler said.
Many young Australians rely on the NDIS for therapy, mental health assistance, support workers, and programs that help them participate in all aspects of everyday life, such as education and employment.
University of Wollongong student Belen Collazo Pazos, who is living with autism, receives support from the NDIS, and said these changes will only create more barriers for people seeking support.
“Care and support is really expensive without having funding, even with funding, it can still be so overwhelming for people,” Ms Collazo Pazos said.
“Just because it requires more funding does not mean that there are too many people on it. It’s not something people are just choosing to do.”
There are currently 6,335 people receiving NDIS support within the Wollongong LGA, over 50 per cent of which are under 25.
Ms Collazo Pazos said the negative stigma around disability is still prominent amongst young people.
“If individuals don’t do the work to deconstruct [the stigma] themselves, then it will never be deconstructed.” Ms Collazo Pazos said.
Mr Butler has announced the Securing the NDIS for Future Generations Bill to amend the NDIS Act, incorporating changes outlined in the federal budget. The bill has now been referred to an inquiry, with the outcome set to be announced on June 16.
Additional Reporting: Laragh Michael
