NDIS Reform Bill Stalls as Senate Inquiry Delayed Again, June 19

Australia’s federal government is struggling to pass sweeping reforms to the $56 billion National Disability Insurance Scheme after a Senate inquiry examining the changes was delayed for the second time on June 19. The proposed overhaul aims to remove at least 240,000 people from the scheme and shift them to yet-to-be-established “foundational supports” funded by other services. Treasury estimates show a one-year pause would wipe out $17 billion in expected savings over the four-year forward estimates, putting the government’s budget plans in doubt.

Why the Delay Matters to the Budget

The federal government is relying on NDIS reforms to slow spending growth, arguing the scheme’s trajectory is unsustainable. A one-year delay to the reforms would cost the budget about $17 billion in expected savings over four years. The government wanted both the NDIS bill and related tax legislation passed by July 2, but the extended inquiry could push the NDIS bill off until August at the earliest.

Political Resistance Grows

The Greens have criticised the government’s handling of the inquiry process. Greens senator Jordon Steele-John said the government demanded disabled people, families and advocates rush to prepare submissions for the inquiry, yet is now delaying the findings release. The Greens are preparing a dissenting position and negotiations with Labor are ongoing over whether to extend the inquiry in exchange for support on other legislation.

Concerns From Families and Advocates

A West Australian mother of a 15-year-old with autism and intellectual disability expressed anxiety about the proposed changes. She fears the reforms could jeopardise her son’s chances of living independently with support worker assistance. Disability advocates and state governments have raised concerns that the reforms are being rushed without adequate consultation with the disability community.

ACCC Cracks Down on Misleading NDIS Claims

In a separate enforcement action on June 19, fitness support company WeFlex Pty Ltd paid a penalty of $19,800 after the ACCC issued an infringement notice for misleading advertising about NDIS funding. The company’s social media ads stated ‘If you have NDIS funding, it’s covered’ for personal training services, but NDIS funding only covers services approved under an individual participant’s plan. The ACCC warned that false claims can leave vulnerable participants with unpayable debts.

Final Thoughts

The NDIS reform delays expose growing political resistance to Labor’s plan, putting $17 billion in budget savings at risk. Disability advocates warn the government is moving too fast without proper consultation, while the Greens hold leverage in negotiations.

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