NDIS Changes: Psychosocial Disabilities at Risk | What You Need to Know (2026)

The upcoming changes to the National Disability Insurance Scheme (NDIS) eligibility criteria pose a significant threat to individuals with psychosocial disabilities, particularly those stemming from mental illness. These changes, driven by a Senate committee's report, will tighten the requirements for accessing the NDIS, making it even more challenging for those with fluctuating symptoms and treatment histories to secure support.

One of the primary concerns is the increased difficulty in demonstrating the permanence of one's disability. Currently, applicants must show a permanent and significant disability that substantially reduces their functional capacity, supported by evidence from treating doctors and specialists. However, for psychosocial disabilities, the lack of a permanent label often means the clinician's voice is overlooked. This is exemplified by the case of an individual with schizophrenia, who, despite meeting the impairment criteria and undergoing first-line treatment, was denied access due to the inability to prove the impairment's permanence.

The proposed changes mandate that applicants demonstrate they have exhausted all publicly funded treatment options, a requirement that is already proving challenging. The Greens' deal to reduce the burden from 'all appropriate treatments' to any publicly funded treatment does not guarantee accessibility. Medicare's limited psychology sessions, high gap fees, and long public mental health waiting lists create barriers to accessing treatment, making it difficult for individuals to provide the necessary evidence.

Furthermore, the shift towards a standardized measure of 'functional capacity' from 2028 raises concerns. This approach, which prioritizes scores over clinical assessment, lacks a robust evidence base and has previously been rejected due to its potential risks. The tool's assessment framework is yet to be determined or validated, and the expert group's findings are not expected to be available until 2027, raising questions about the fairness and accuracy of the new eligibility criteria.

The changes also threaten the right to appeal NDIA decisions. With a high rate of overturned decisions (76% in 2019-2021), the removal of the right to appeal could leave individuals with psychosocial disabilities without a means to challenge decisions that may not align with their needs. This could lead to further destabilization and a loss of access to essential support.

In conclusion, the proposed NDIS eligibility changes disproportionately affect individuals with psychosocial disabilities, particularly those with mental illness. These changes risk exacerbating existing barriers and may lead to a loss of support for those who need it most. It is crucial to carefully consider the potential consequences and ensure that the NDIS remains a supportive and inclusive system for all participants.

NDIS Changes: Psychosocial Disabilities at Risk | What You Need to Know (2026)
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