The Australian Government is pushing forward a comprehensive set of reforms to the National Disability Insurance Scheme Act 2013 (NDIS Act), aimed at strengthening integrity, enhancing protections for participants, and improving how the scheme operates. These legislative changes follow extensive public consultation and are part of broader efforts to respond to issues raised by NDIS participants, providers and the wider disability sector.

Integrity and Safeguarding Bill Introduced

At the centre of the reforms is the National Disability Insurance Scheme Amendment (Integrity and Safeguarding) Bill 2025, which was recently introduced into Parliament. This Bill proposes a range of significant amendments to the NDIS Act to help the NDIS Quality and Safeguards Commission and the National Disability Insurance Agency (NDIA) enforce rules, protect participants and respond quickly to issues that arise.

Among the key changes are major updates to penalties and offences. The reforms include higher fines and stronger penalties for serious breaches, such as providing false or misleading information, failing to comply with registration requirements, and breaching conditions of registration. New criminal offences are also being introduced, including penalties for people providing NDIS supports without being registered and for failing to comply with banning orders.

The Bill also expands the scope of who can be banned from the NDIS market, including consultants and auditors who pose risks. These measures are designed to prevent unscrupulous actors from operating in any capacity within the scheme, not just as direct service providers.

New Regulatory Powers and Safeguards

To further strengthen oversight, the amendments enhance the Commissioner’s ability to gather information from providers, including requiring registered providers to produce documents and records in specific timeframes. This will help regulators act more quickly when issues arise.

A new tool called an anti-promotion order will also be added, allowing the Commissioner to restrict promotional activity that does not align with the objectives of the NDIS Act — such as misleading advertising or marketing that targets vulnerable participants.

Another change simplifies the use of evidence in court by allowing certificates issued by the Commissioner to be accepted as proof unless challenged, making proceedings more efficient.

Participant-Focused Changes

Changes to the NDIS Act also aim to give participants greater clarity and safety when making important decisions. For people choosing to leave the NDIS, a 90-day cooling off period will be introduced, giving participants time to reconsider and confirming that the decision to exit the scheme is genuinely in their best interest.

The reform package also modernises administrative aspects of the Act. For example, the NDIA will be able to require claims from providers in electronic formats, improving compliance and quality in payments. The legislation clarifies how plan variations operate, allowing adjustments to total funding amounts without requiring a full reassessment when needs have not changed.

Other Rule-Based Improvements

Alongside the Bill, other rules have been introduced under the Act to clarify how the NDIA should approach decisions such as plan management and plan variations. These rules help ensure consistency and fairness when deciding how a participant’s plan is managed or when their support needs change.

A recent change also updated the legal definition of what counts as NDIS supports, giving clear guidance on what funding can be used for. Transitional arrangements are in place to ensure that updates do not disrupt access to essential supports.

Supporting Future Planning Reforms

These legislative updates are foundational to other major reforms underway, including changes to how NDIS plans are developed and delivered. They create the legal basis for new planning approaches that will gradually be introduced, with the aim of making the scheme fairer and easier for participants to navigate.

Overall, the changes to the NDIS Act represent one of the most significant regulatory updates in the scheme’s history, focusing on safety, clarity, participant rights, and system integrity. As they progress through Parliament and into law, the Government has emphasised ongoing consultation and support to help participants and providers understand what the changes will mean in practice.