Bipartisan Criticism Emerges Over Albanese Government's Controversial NDIS Overhaul
June 11, 2026
Disability ministers from across parties publicly oppose the Albanese government’s proposed NDIS overhaul, arguing the draft laws could undermine the scheme’s original intent and fail to deliver like-for-like services for more than 200,000 participants expected to be moved off the scheme by 2031.
Labor hopes to secure Coalition support to pass the laws by the end of June as a Senate inquiry into the amendments continues and its findings are expected next week.
The Senate inquiry has heard that planned 50% cuts to social and community participation budgets could increase isolation and create unsafe situations for participants.
A joint submission to the Senate committee argues the changes lack a coordinated approach to the broader disability support system and could lead to fragmented service delivery and gaps in care.
States and territories warn that without clearly defined alternative supports, demand could shift to health, education, and justice systems ill-equipped to handle it, risking unmet needs or inappropriate hospital placements.
Federal Health Minister Mark Butler defends the plan as a long-term, well-developed approach to stabilizing the NDIS and keeping people with disability at the center, while not commenting on extending the inquiry.
The government aims to curb NDIS growth by cutting budgets and then limiting access starting in 2028, with legislation currently under Senate committee scrutiny.
Ministers call for amendments to address service gaps and to rein in the federal minister’s expanded powers while preserving the long-term integrity and sustainability of the NDIS.
Ministers warn there is a significant risk that people with disabilities could be pushed into hospitals or left without access to disability services if reforms proceed as proposed due to rapid reform and limited consultation.
Butler indicates a goal to pass the legislation before Parliament’s winter break on 2 July, despite ongoing inquiry scrutiny and concerns raised by states and territories.
Ministers say they were not meaningfully consulted and oppose unilateral powers given to the federal NDIS minister, signaling a shift away from shared governance.
Department modelling projects more than 240,000 participants could be exited from the NDIS in the four years after new eligibility rules take effect in 2028.
Summary based on 2 sources
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Sources

The Sydney Morning Herald • Jun 11, 2026
‘Significant risk’: Disability ministers defy Butler’s NDIS overhaul