Overview of NDIS reforms – major aged care investment and sweeping NDIS reforms signal a pivotal shift for social workers and the people they support.
AASW Response to Minister Butler’s National Press Club Address.
23 April 2026
Yesterday, Minister Butler used his National Press Club address to announce investment in aged care and what are set to be the most significant structural
reforms to the NDIS since its inception.
These reforms are expected to tighten access to the NDIS, reduce participant numbers, and reshape funding for key supports, with direct implications for social workers’ roles and the people they support.
We know many members are already experiencing uncertainty. Here’s what we know so far, and what the AASW is doing.
Why NDIS reform is happening
The reforms intend to address the unsustainable growth and cost trajectory of the NDIS. Projections indicate that spending has blown out by $13 billion over the next 4 years, with current spending estimated to be $70 billion by 2030. The proposed changes instead aim to bring the cost of the NDIS down to $55 billion by 2030.
The AASW acknowledges the need for reform and ensuring the NDIS’s long-term sustainability, and supports action on fraud and integrity. However, the scale of the proposed savings is unlikely to be achieved through fraud reduction alone and will likely result in tighter access, reduced plan budgets, and fewer participants, with significant implications for social workers and the people they support.
We know these reforms are creating significant uncertainty for participants and social workers across the sector. Many social workers are already seeing uncertainty in their roles, caseloads and client access – more information is urgently needed to understand exactly how this level of cost reduction will affect the role and reach of social workers in the NDIS.
It’s more important than ever to safeguard participant choice and control, while ensuring the sustainability of a skilled and diverse workforce.
Investment in aged care
Significant new investment has been announced to expand aged care capacity. The upcoming budget will invest $3 billion in delivering more packages and better care for older Australians, including:
- investment in 5,000 new residential aged care places per year
- over $200 million to deliver new dementia care units to respond to growing demand from an ageing population
- $1 billion to change the treatment of showering, continence management and dressing through the Support at Home program, making them free of charge, alongside clinical care.
The Federal Government will also remove higher private health insurance rebates for over-65s, with savings redirected into aged care. This is framed as an equity measure, but may increase insurance premiums for older Australians and shift some demand into the public system.
The aged care reforms are driven by demographic pressure, with strong emphasis on ensuring the system can meet the needs of a rapidly growing older population. The expansion of both home care and residential services is intended to address current shortages and reduce pressure on hospitals.
Key NDIS takeaways for social workers
- Access to the NDIS will shift from diagnosis-based criteria to standardised functional capacity assessments, raising concerns about whether psychosocial disability and complex social needs will be adequately recognised – making social workers’ input into assessment design critical.
- Participant numbers are expected to fall from about 760,000 to 600,000 by 2030, meaning fewer people will qualify.
- The Department factsheet confirms that participant support budgets for social, civic and community participation supports and capacity building daily activities will be progressively adjusted from 1 October 2026 (capacity building is the funding category that covers the social work-specific therapy).
- New framework planning has been delayed and will now commence on 1 April 2027 instead of July this year.
- Responsibility for NDIS pricing will shift from the NDIA to the Minister, with consultation on differentiated pricing expected to begin.
- Expansion of mandatory provider registration for higher risk supports will commence from July 2027, with implementation by the end of 2030 – further clarification is required as to what is considered ‘higher risk’ and what this means for social workers.
- The Albanese Government will introduce the National Disability Insurance Scheme Amendment (Securing the NDIS for future generations) Bill following the release of the 2026-27 Budget.
Next steps
As the disability sector continues through a period of significant reform, the AASW is actively advocating to ensure people with disability and older Australians can access the right supports, from the right professionals, at the right time.
The AASW is:
- actively engaging in NDIS reform processes and working with government and sector partners to influence policy, pricing, and program design
- ensuring members’ frontline expertise informs advocacy and decision-making
- continuing to advocate for participant choice and control, access to social workers, and recognition of the profession’s value
- promoting fair funding and a strong social justice, human rights-based approach across the disability sector.
Reform of this scale requires awareness, readiness and collective effort. The AASW will continue to provide updates as reforms evolve and information becomes available. This includes an update following the announcement of the Federal Budget on 12 May 2026.
The AASW remains committed to ensuring the voice of social workers informs disability reform – and that people with disability continue to receive high-quality, appropriate support to thrive.
Additional links
Transcript of Minister Butler’s National Press Club Speech
Department of Health, Disability and Ageing Fact sheet
Q&A with Minister Butler, National Press Club – 22 April 2026