NDIS Reforms and Mental Health: Navigating Change While Protecting Rights

Minister Butler's address to the Press Club yesterday outlined significant changes coming to the NDIS, with particular focus on children with developmental delays and autism. As the national peak body for private mental health consumers and carers, we need to examine what these reforms mean for our community, particularly those with psychosocial disability. We thank the Australian Federation of Disability Organisations (AFDO) for their communications with us on this matter, which has supported our ability to be able to write this piece and consider what comes next.

The Current Landscape

The Minister's speech acknowledged something our community has long known: the NDIS has been transformative. For people with severe and persistent mental illness, the scheme has provided unprecedented choice and control over supports that enable independent living, community participation, and recovery.

However, the statistics shared paint a concerning picture of sustainability. Growth at 22% per year when Labor took government, now targeted at 8% by next year, with further reductions needed to reach a sustainable 4-6% annually. The Minister was clear: "8% growth is simply unsustainable in the medium to long term."

What's Changing: The Thriving Kids Program

The centrepiece of yesterday's announcement was the new "Thriving Kids" program, designed to support children with mild to moderate developmental delays and autism outside the NDIS.

Key details include:

• $2 billion Commonwealth investment with 50/50 state funding

• Program rollout from July 2026, fully operational by July 2027

• NDIS access changes for this cohort effective mid-2027

• Co-design process led by paediatrician Professor Fiona Stanley

The Minister's rationale was stark: "one out of every 10 six year olds are on the NDIS, including 16% of six year old boys." In some regions like the mid-north of NSW, it's one in four children.

The Missing Piece: Adults with Psychosocial Disability

Here's where our concern deepens. The NDIS Review specifically identified two priority cohorts for foundational supports:

1. Children aged 0-9 with developmental delays/autism (now getting the Thriving Kids program)

2. Adults with "severe, chronic mental illness, often psychotic disorders"

   
   

The Minister acknowledged this second cohort explicitly, stating that foundational supports were meant to address "adults, often middle-aged adults with severe, chronic mental illness, often psychotic disorders." Yet there was no announcement, no timeline, no funding commitment for this group.

When pressed about the delay, Minister Butler admitted the work has "drifted" over the past two years. This is unacceptable for adults with severe mental illness who need these supports now, not at some undefined future date.

Evidence-Based Concerns

The Minister's emphasis on evidence-based supports is welcome, but we need this same rigour applied to mental health foundational supports.

Research consistently shows that:

• Early intervention in psychosis significantly improves long-term outcomes

• Community-based psychosocial supports reduce hospitalisation rates

• Peer support services demonstrate strong evidence for recovery outcomes

• Integrated care models improve both clinical and social functioning

These evidence bases exist. What's missing is the political will to implement them with the same urgency being shown for children's services.

Market Stewardship and Quality Concerns

The Minister's focus on provider registration resonates with our community's experiences. Currently, only 16,000 of 260,000 NDIS providers are registered - leaving mental health consumers particularly vulnerable to poor quality or inappropriate services.

For people with psychosocial disability, the therapeutic relationship is fundamental to recovery. Unregistered providers operating without proper oversight can cause significant harm, particularly in mental health support provision.

Our Position Moving Forward

As Lived Experience Australia, we support AFDO's five key demands:

1. Guarantee no participant loses support during transitions - Critical for people with mental illness who may destabilise without consistent support

2. Co-design all reforms with people with disability - Our lived experience expertise is essential for effective reform

3. Deliver foundational supports urgently - Adults with severe mental illness have waited too long

4. Strengthen rather than weaken rights and choices - The recovery approach depends on choice and control

5. Ensure transparent, independent oversight - Protect outcomes over cost-cutting

   
   

What This Means for Our Community

For mental health consumers currently on the NDIS, these reforms should not directly impact your supports in the immediate term. However, the focus on sustainability and the emphasis on returning to "original purpose" requires our vigilance.

For carers and family members, the delay in foundational supports means continued gaps in community-based mental health services. This places additional pressure on families and increases risk of crisis presentations.

For peer workers and mental health professionals, the proposed market stewardship reforms may create new opportunities for professional development and service improvement, but implementation details remain unclear.

Moving Forward Together

The Minister committed to "the deepest collaboration with the disability community" on future reforms. We will hold government to this commitment, ensuring mental health consumers and carers have genuine voice in shaping changes that affect our lives.

The NDIS Advisory Committee recently announced by government must include strong representation from the mental health community. Our experiences of psychosocial disability, recovery, and support needs are distinct and require specific expertise.

Call to Action

We encourage our community to:

• Stay informed about reform timelines and consultation opportunities

• Share your experiences with NDIS supports and gaps in foundational services

• Engage with consultations when they open for the next wave of reforms

• Connect with your local representatives about the urgency of foundational supports

  
  

Conclusion

The NDIS remains a beacon of what's possible when we centre the rights and choices of people with disability. As reforms continue, we must ensure that sustainability measures don't compromise the transformative potential of this scheme for people with psychosocial disability.

We stand ready to work with government, but we need action, not just words, on foundational supports. Adults with severe mental illness deserve the same urgency and investment being shown for children's services.

The promise of the NDIS was to provide choice and control for people with significant and permanent disability. For our community, that promise must be protected and strengthened, not diminished in the name of sustainability.

As a member organisation of AFDO, we strongly support their comprehensive response to Minister Butler's address. Read the full statement: https://www.livedexperienceaustralia.com.au/_files/ugd/07109d_fccc154d439e49dba4788d20e3a9ce1d.pdf

For more information about the AFDO's advocacy, see their website: https://afdo.org.au/our-work/advocacy-work/