Most of the savings in this year’s budget came from cuts to the National Disability Insurance Scheme (NDIS).

The government wants to save A$37.8 billion over four years, predominantly by cutting NDIS eligibility for more than 300,000 people with higher functional capacity.

This includes more than 160,000 current NDIS participants, as well as those who would have entered the scheme.

But the success of a slimmed-down scheme will depend on the availability of high-quality alternative services for those who no longer qualify for the NDIS.

With eligibility changes starting in January 2028, the clock is ticking to establish these alternative “foundational supports”.

Remind me, what’s been announced and why?

The federal government has committed $5 billion – a 50% share of a $10 billion funding agreement with states and territories – for foundational supports.

But aside from $2 billion provided to fund Thriving Kids, there is little detail in the budget about what else is planned.

The remaining $3 billion is currently being held in a contingency fund, and has not been earmarked for any specific programs.

Foundational supports are “commissioned services”. This means providers are contracted to deliver a set of programs or supports.

Currently, people on the NDIS source these supports from the market, paying for them using their NDIS plan.

Commissioned services can be effective. They can provide services to more people, at a lower cost per person, and ensure services are available where few others exist.

Direct commissioning can also help governments oversee the quality of services and ensure people are directed to supports with a strong evidence base. Spending is then less........

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