NDIS sustainability proposals: understand the Grattan debate

Too Big, Too Fast? Why Experts Say the NDIS Needs a Reset

By Clickability · Originally published 30 June 2025

Colourful illustration of a person using a wheelchair beside charts

Original article and dated context

The NDIS is growing faster than expected and now supports over 700,000 people — much higher than the original forecast of 490,000. A large part of this growth is from children under 9, whose numbers are almost double what was expected.
While the NDIS helps many, it’s become the only real support option for people with disability, leading to pressure on the system. The Grattan Institute has proposed four key changes to make the scheme more sustainable, without cutting vital supports:

[Clickability update, October 2026: The changes below are proposals described in the original article. They do not establish current NDIS access criteria or instruct families to leave the scheme. Use current reform guidance for adopted changes and their timing.]

1. Set Clearer Boundaries

  • Tighten eligibility so it’s clearer who the NDIS is for.
  • Remove early intervention access for children and instead support them through a new system of “foundational supports”.

2. Improve Claim Management

  • Make funding decisions more consistent and fair.
  • Let people use their budgets more flexibly.
  • Speed up rule changes and introduce a new needs assessment process.

3. Fund Foundational Supports

  • Introduce a separate system of basic supports (outside the NDIS) for people who don’t qualify, especially children and people with psychosocial disability.
  • Fund these supports using the existing NDIS budget, not new money.

4. Create a New National Disability Agreement

  • Replace the outdated 2008 agreement to clarify who’s responsible for what across governments.
  • Improve cooperation and accountability between the federal, state, and territory governments.

💬 Advocate Concerns

  • Children's advocates are worried: Removing early intervention from the NDIS without a clear plan for foundational supports could leave families without help.
  • Many children are already being reassessed and removed from the NDIS, often without replacement supports in place.
  • There's still no detail from government about what these foundational supports will look like.

💰 Projected Financial Impact

  • The plan could reduce NDIS payments by $12 billion over 10 years.
  • An additional $34 billion in savings could come by funding foundational supports from the existing budget.
In short, the NDIS is under pressure, and the Grattan Institute says it can be saved by tightening eligibility, managing budgets better, introducing foundational supports outside the scheme, and creating a clearer national agreement. These changes aim to make the system fairer and more sustainable. However, advocates are concerned that children may lose access to vital early intervention services before new supports are in place. Without clear plans and communication, some families risk being left without the help they need.

Clickability editorial update: October 2026

Ask what is confirmed before planning a change in support

A proposal to remove or redesign early intervention is not a decision about your child. Identify whether the information you receive is a report recommendation, a government announcement or an actual letter about their support. Keep those documents separate when discussing the next step with practitioners.

Ask where the proposed alternative is operating, what help it provides and how the handover would work. Current early childhood rollout information is a better starting point than the original article’s statement that no detail exists. Confirm an available pathway before changing established appointments.

Questions readers ask

Were all four proposals automatically made law?

No. This is a historical summary of attributed policy proposals. Official guidance

Are the savings figures guaranteed outcomes?

No. The original savings figures are projections, not measured results.

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