Treasurer Jim Chalmers delivered his fourth budget on Tuesday, setting the stage for the Albanese government’s re-election campaign. But what does this budget mean for people with disability?
To help answer these questions, we've highlighted the key things you need to know about the NDIS and disability sector.
What is the federal budget?
The federal budget is the Australian Government’s annual plan for collecting and spending money for the following financial year.
It’s sort of like a health check for the economy, which shows us where we’ve been and where we’re headed.
This week, the federal government delivered its budget for the 2025/26 financial year, sparking mixed reactions within the disability community.
Supporting people with disability
The amount of money allocated to help people with disability comes in at $424 million. Some of these budget measures include:
- $365 million for the Information, Linkages and Capacity Building program which will deliver the start of foundational supports as envisaged by the NDIS Review.
- $42 million to deliver the National Autism Strategy.
- $17 million to establish the Accessible Australia program to increase accessible public infrastructure, such as national parks and beaches.
To learn more about these measures, we recommend reading DSC’s federal budget breakdown.
Strengthening the NDIS
In April 2023, the National Cabinet set a goal to limit NDIS growth to 8% by mid-2026, but reaching this target will require changes to how the scheme operates.
In his post-budget interview, the Treasurer confirmed that the NDIS is "on track" to meet the reduced growth target, a positive sign for making the scheme more financially sustainable while still supporting those who rely on it. He highlighted that although costs are still increasing, they’re doing so at a more manageable rate.
To further strengthen the NDIS and ensure its long-term integrity, the government has allocated $175 million over the next four years. This funding will support the NDIA in hiring more staff and enhancing its fraud detection systems.
How the disability community responded
The budget has sparked reactions within the disability community.
Children and Young People with Disability Australia (CYDA) welcomed the $364 million allocated for foundational supports, aimed at funding services for those no longer eligible for the NDIS. However, they raised concerns about the lack of clarity on whether this funding depends on states and territories matching it.
“Cutting the NDIS without establishing robust alternatives is leaving people with disability with nowhere to turn.”
While People with Disability Australia (PWDA) responded with cautious optimism. While they acknowledged the investment in foundational supports, they pointed out that the budget falls short in addressing critical issues like housing, homelessness, family violence, and disaster preparedness, where people with disabilities are often disproportionately affected.
PWDA Board Director, Steph Travers, expressed frustration over the lack of focus on essential reforms, emphasising, "In general, we’re feeling invisible in the mainstream budget. That’s what happens when the reform roadmap from the Royal Commission is still missing in action." She stressed, "If measures don’t specifically address our community, they won’t work for us."
What the Opposition has said
In his 2025 Budget reply, Opposition Leader Peter Dutton didn’t announce any new policies specifically related to the NDIS.
However, earlier this year, the Coalition released ‘The Priorities of a Dutton Coalition Government’, which outlines a general commitment to maintaining the NDIS for people with permanent and significant disabilities. The plan focuses on:
- Removing fraud and waste from the Scheme.
- Improving employment outcomes for people with disability.
- Working across all levels of government to ensure coordinated disability support.
While the Coalition has expressed concern about rising government spending, it hasn’t proposed any changes to the NDIS at this stage.
What’s next?
It’s been a big week in federal politics, a budget delivered, a reply speech from the Opposition, and a looming election now set for 3 May, 2025.
Amid all the headlines, many in the disability community are asking: What does this mean for the NDIS? That question feels especially relevant this month – March marks 12 years since the NDIS legislation was passed and the NDIA was established to deliver the Scheme across Australia.
