Australia to Revamp NDIS Eligibility by 2028, Shifting Focus from Diagnosis to Functional Needs
April 28, 2026
Advocates call for co-design with people with disability to capture less visible needs, and note that services outside the NDIS must fill gaps created by eligibility changes.
There is concern among families, especially those with autistic children, that a one-size-fits-all tool may not capture fluctuating and nuanced needs like masking and day-to-day variability.
WHODAS is a well-established framework, but experts say it may need tailoring to Australian circumstances and to align with NDIS supports and outcomes.
An estimated 160,000 current NDIS participants with milder needs are expected to be removed from the scheme and redirected to state programs.
The new eligibility tool will be objective and equitable, with input from the disabled community and a technical advisory group, and may use WHODAS as part of the framework.
A new child-focused system, Thriving Kids, will be expanded or implemented by states for children with moderate needs who may come under state management rather than the federal NDIS.
Australia will overhaul NDIS eligibility from 2028, moving away from diagnosis-based qualification to an assessment of functional capacity and need for support.
Health and Disability Minister outlines a start in January 2028 for an eligibility overhaul, with a tool designed to be relatively blind to specific diagnoses and instead focus on daily living needs and functional capacity.
Butler says the changes aim to restore the scheme to its original purpose and tackle unsustainable cost growth, while acknowledging disruption for families.
A consequence of reforms will be a shift in the allied health workforce away from the NDIS, potentially reducing access to therapists in aged care, veterans’ care, and hospitals, with pricing and funding dynamics cited as factors.
The overhaul aims to reduce reliance on diagnostic labels and address diagnostic inflation, while expanding access to those with genuine high support needs.
The assessment process will be co-designed over about 18 months with the disability community and state governments, possibly including an initial stage to identify clear, lifelong impairments.
Summary based on 2 sources
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Sources

The Sydney Morning Herald • Apr 24, 2026
The six criteria the NDIS might use in its new eligibility rules
The Sydney Morning Herald • Apr 28, 2026
New NDIS eligibility tool will be ‘relatively blind’ to diagnoses: Butler