This article applies to NDIS providers and other organisations delivering or facilitating NDIS supports.

National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 (Cth)

On 19 August 2026, the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 (Cth) (the Bill) passed both Houses of the Commonwealth Parliament and is awaiting Royal Assent. The majority of the Bill will commence on the seventh day after Royal Assent, with the new prohibition on inducements (discussed below) commencing 3 months after Royal assent.

Operationally Significant Changes

The Bill inserts a range of amendments into the National Disability Insurance Scheme Act 2013 (Cth) (the NDIS Act). The most significant changes (from an operational perspective), include:

• amendment of the definition of ‘NDIS provider’;
• changes to functional capacity assessment;
• the introduction of new record keeping requirements for claim-related records; and
• the introduction of new maximum pricing and provider inducement prohibitions.

Further Information

The Bill is directed at two key policy concerns, the long-term sustainability of the NDIS and the need to address fraud and misuse affecting the NDIS.

NDIS provider

The Bill introduces section 10C into the NDIS Act, which defines a NDIS provider to mean a person or entity that is:

• a person (other than the Agency) who receives:
  • funding under the arrangements set out in Chapter 2 of the NDIS Act; or
  • NDIS amounts (other than as a participant); or
• a person or entity:
  • who provides support or services to people with disability other than the National Disability Insurance Scheme (the NDIS Scheme); and
  • who is prescribed by the National Disability Insurance Scheme Rules (the NDIS Rules) for the purposes of section 10C(1).

A person or entity is not a NDIS provider if the person or entity is included in a class of persons or entities prescribed by the NDIS Rules for the purposes of section 10C(2). The practical significance of this new definition is that many of the new record-keeping, pricing and inducement provisions (discussed further below) apply to a NDIS provider, which is broader than a registered NDIS provider.

The purpose of the new definition is to more clearly distinguish the types of suppliers, organisations and entities who are considered to be NDIS providers, and provide an ability to carve out suppliers and organisations who should genuinely not be considered to be NDIS providers.

Functional capacity assessment

The Bill amends the eligibility requirement for the NDIS, for which a person’s impairment/s must result in substantially reduced functional capacity in at least one key activity.

Functional capacity, in relation to an activity, refers to a person’s ability to undertake the activity:

• either without assistance from other people, assistive technology or modification, or only with:
  • assistance for assistive technology or modifications that are commonly used and that the person would ordinarily use to undertake the activity; and
  • if the person is a child-assistance from other people that is appropriate to the person’s age; and
• in the context that excludes, as far as possible, the impact of the person’s environmental and personal circumstances.

The NDIS Rules may in the future prescribe methods, criteria, classifications and circumstances for the purposes of determining functional capacity.

Record keeping requirements

The Bill inserts section 45B(1) of the NDIS Act which requires NDIS providers to keep and retain a record, for a period of 7 years beginning on that day the claim is made, that relates to:

• a claim for the payment of an NDIS amount; or
• the provision of an NDIS support to which a claim for the payment of an NDIS amount relates;

if the record is of a kind prescribed by the National Disability Scheme Rules (the Rules).

However, under section 45B(2), the retention of a record may be for a shorter period if the Rules prescribe a period that ends before the end of the 7 year period.

A breach of section 45B(1) will result in a penalty of 120 penalty units (currently, $43,680).

Maximum pricing

We note that the Bill will insert section 45C in the NDIS Act which prohibits a NDIS provider from charging more than the maximum amount determined by the Minister under s 45C(1) for an NDIS support where the determination applies.

Prohibition on NDIS provider inducements

Finally, we note that the Bill will insert new section 73VA in the NDIS Act. This section prohibits a NDIS provider from giving, offering or agreeing to give a gift, benefit or other thing that is reasonably likely to induce a person to engage or continue engaging the provider, obtain additional supports, increase the amount or intensity of supports; (subject to specified exceptions including legitimate pricing practices and provider merchandise).

A breach of section 73VA incurs a penalty of imprisonment for 2 years or 120 penalty units (currently ($43,680) (or both).

Please click here to access the full Bill.