Australia's parliament strikes deal on contested NDIS overhaul bill

Australia's Senate was set to vote Tuesday night on an amended bill overhauling the National Disability Insurance Scheme (NDIS) after Labor and the Coalition reached a backroom deal. Sixty-three government amendments will be introduced across both houses of parliament, with NDIS ministers Mark Butler and Jenny McAllister describing some as technical and others as substantial.

A central point of contention is a new ministerial power allowing funding for certain support categories to be slashed by up to 99% across all participants. To soften the risk for the most vulnerable, including those needing round-the-clock care, the government has added a pathway letting affected participants apply for a plan variation and additional funding within 90 days of a support determination.

Despite this concession, Greens senator Jordon Steele-John and independent ACT senator David Pocock remain opposed to the broad funding-cut power, calling it their key objection. Pocock argued the indiscriminate cut could leave people with disabilities in unsafe situations, heightening risks of isolation, abuse and exploitation, with the real impact only becoming clear after harm occurs. Steele-John warned the change would strip away support workers who help disabled people leave their homes even once or twice a week.

The government defends the reform by pointing to the scheme's rapidly rising cost, currently around A$52bn a year, which it estimates could more than double within a decade without changes. The amended bill is projected to improve the federal budget balance by A$37.8bn over four years.

In exchange for its support, the Coalition secured new criminal and civil penalties targeting anyone offering or accepting kickbacks funded through the NDIS, along with tougher offences for fraud, providing false information, destroying records and abusing a position of trust as a participant's nominee. The vote had briefly been at risk of delay amid a separate Coalition push tied to closing a tax loophole, expected to be voted on separately Wednesday.