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Last night, the Federal government handed down the 2025-26 Budget. According to the media, it was the budget that was never meant to happen, as the Prime Minister’s plans to hold an election got delayed by ex-cyclone Alfred. But what does this poor, unwanted Budget mean for the disability sector?
In recent years, the NDIS has become a big-ticket Budget item. The Budget is also used to inject funding into new and existing disability programs and initiatives. As we wait (and wait and wait) for the government’s official response to the NDIS Review, following the money helps us understand the government’s reform priorities.
But in case flicking through pages of tiny-fonted budget documents isn’t your idea of fun (that would be weird, but ok!), we’ve pulled out the key things you need to know about what the Budget means for the NDIS and disability sector.
NDIS growth
The growth rate of the NDIS has become a source of government anxiety. In April 2023, National Cabinet set a target to limit NDIS growth to 8% by mid-2026. The NDIS is an uncapped scheme, so the government can only meet this target by changing the rules and operations of the NDIS, which they have attempted to do through the new NDIS Act.
It is estimated that the NDIS will cost $48,984,285,000 in the 2024-25 financial year. Which is a tiny bit lower (but very close to) the $49,044,230,000 that was estimated in last year's budget.
Between 2023-24 and 2024-25, the NDIS grew by 9.7%. Which is down significantly from the 20% growth rate between 2022-23 and 2023-24.
The government says it is on track to meet the 8% target by mid- next year. 
Information, Linkages and Capacity Building
This budget allocates $364.5m over 5 years to reform the Information, Linkages and Capacity Building (ILC) program. From 2029-30, the program will get $150.9m annually.
How this ILC funding relates to foundational supports is a bit murky. The Department of Social Services (DSS) factsheet says that the ILC program will both ‘deliver the building blocks for
General Foundational Supports’ and ‘complement the additional Foundational Supports.’
The government is still in negotiations with the states and territories about how to fund foundational supports, and by all accounts those talks are getting rather testy. Hopefully, there is a bigger financial commitment on the horizon, because $364.5m over 5 years isn’t exactly going to put another lifeboat in the ocean. At most, it’s a lifejacket.
The new ILC program will focus on:
- Individual capacity building
- Family capacity building
- Community capacity building
- Information and advice
- Emerging practice and independent evaluation
Which does sound similar to the foundational support initiatives DSS is currently proposing, read more: What’s happening with foundational supports?
Crack down on fraud
We all know that fraud = bad. The government has made it clear it’s very keen to find fraudulent behaviour and put an end to it.
This budget allocates $151m over four years for the NDIA’s Crack Down on Fraud program to continue enhancements to the fraud detection IT systems. From 2029-30, this program will be funded at $43.8m per year. According to the Department of Social Services factsheet, the program has already cracked down on 2,100 providers with ‘problematic claiming behaviours.’ Funny, those are the same words I use to describe my ex.
There is also $17.1m in 2025-26 for the NDIA’s payment integrity workforce.
Non compete clause
The government used the Budget opportunity to announce that from 2027 it is taking action to stop non‑compete clauses that prevent workers from switching to better, higher‑paying jobs. Treasury’s Competition Review heard that minimum wage workers were being sued or threatened with legal action for changing jobs to a competitor or starting their own business. This is said to drag down wages and reduce job mobility. The ban on non-compete clauses will apply to workers earning less than the high-income threshold in the Fair Work Act, currently set at $175,000.
The government says it will also close loopholes that allow businesses to use anti-poaching agreements to block staff from being hired by competitors. While the disability sector was not singled out in the media release, it could have implications for providers who use these clauses. The Government says it is considering further non‑solicitation clauses for clients and co‑workers, as well as non‑compete clauses for high‑income workers. There will be further consultation on the policy detail, exemptions, penalties and transition arrangements.
Accessible Australia
In the Budget, the government announced a new initiative called Accessible Australia. The initiative will aim to increase the accessibility of national parks, beaches, portable and fixed changing facilities and play spaces. The government will provide $17.1m over 4 years.
Accessible Australia will replace the Changing Places Initiative.
Learn more about the Commonwealth Accessible Australia Initiative.
Legal Aid and appeals
This Budget provides $7.3m supplementary funding for Legal Aid and NDIS appeals advocacy providers, so they can support people taking NDIS appeals to the Administrative Review Tribunal and Alternative Dispute Resolution. Basically, it’s the government providing money to help people fight other parts of the government– which is funny, but well-deserved funding.
Additional budget measures
Some additional Budget measures related to the disability sector include:
- $42.3m over the next five years to deliver the National Autism Strategy and implement the Strategy’s Action Plan. From 2029-30 onwards, $100,000 a year will be allocated. Read more about the National Autism Strategy: Australia’s first National Autism Strategy.
- $11m over four years to increase the Disability Australian Apprentice Wage Support subsidy.
- $2.4m in 2025–26 to extend the Care Together Program, which supports communities to develop cooperative and mutual ways to develop care services, including aged care, disability services and veteran’s care.
But, isn’t there going to be an election soon?
The government has to go to an election by May 17th- so the clock is ticking!
Many initiatives announced in the 2025-26 will only be implemented if Labour wins re-election.
We don’t know what the Coalition has planned for the NDIS, but we might learn more in Opposition Leader Peter Dutton’s Budget reply speech on Thursday. In a Sky News interview on Sunday, Shadow Public Services minister Jane Humes said ‘more can be done’ to limit NDIS growth. But Shadow NDIS Minister has since said that the Coalition isn’t planning on ‘cutting the NDIS.’
Learn more
If you want to get into the fine print and learn about other Budget measures, check out the Budget 2025-26 webpage.
You can find the DSS budget (which incorporates the NDIS) and relevant factsheets at the DSS Portfolio Budget page.
People with Disability Australia has released a statement calling for more clarity on Foundational Support funding. Read the full statement: Federal Budget 2025: People with disability invisible in key budget measures
Artwork by Helen Maysey
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