The federal government's contested overhaul of the National Disability Insurance Scheme is on track to complete its passage through parliament, after the Senate approved the bill overnight following 63 amendments negotiated between Labor and the Coalition. The health and NDIS minister, Mark Butler, confirmed the changes were introduced across both houses to secure Coalition backing for measures designed to curb spending growth in the scheme, and the legislation is expected to clear the House of Representatives later today.
The deal came during a particularly busy sitting week in Canberra, with the government also striking an agreement with the Coalition on gambling advertising restrictions and fast-tracking a fix to the so-called "widow tax" flaw in its negative gearing changes. As reported in our earlier coverage, Labor's caucus approved the gambling reform amendments alongside the negative gearing correction, while the Coalition backed the amended gambling ad curbs, though two Liberal MPs crossed the floor over concerns the reforms fell short of Peta Murphy's original recommendations.
What did the Coalition secure in the amendments?
The Coalition won a new process allowing high-risk NDIS participants to seek variations to their individual plans if category-wide funding cuts affect them, addressing fears that ministerial power to slash some funding streams by up to 99% could leave vulnerable people without adequate support, according to a report on the negotiated deal. The Coalition also secured new criminal and civil penalties targeting kickbacks in the scheme, along with aggravated integrity offences covering deception, submission of false information, destruction of records and abuse of nominee powers, the same report notes. Additional detail reported separately indicates the legislation includes a review after three years, an independent review to be conducted after 5 September 2029, and greater transparency requirements around automated decision-making within the scheme, according to a live political blog.
How significant was the Senate scrutiny process?
The bill underwent extensive parliamentary examination before reaching this point. A Senate committee inquiry drew more than 4,500 public submissions and held six days of hearings, according to a summary of the committee's final report. The government has projected the changes will deliver around $37 billion in savings over four years, according to national broadcast reporting. Because Labor lacked the numbers to pass the bill on its own, it needed either Coalition or Greens support in the Senate, and earlier reporting had flagged the government's intention to cut the social and community participation budget by 50% and the capacity-building daily activities budget by 10% under the amended law.
The bill was formally introduced to the Senate on 12 August 2026, after having already passed the House of Representatives.
What has the political reaction been?
Butler undertook a round of morning media appearances to promote the deal following the Senate vote, framing it as a win for both scheme sustainability and continued support for participants. Separately, the debate over early access to superannuation continued to intensify, with Senator Pauline Hanson accusing Treasurer Jim Chalmers of misrepresenting her position. Hanson maintains she supports allowing people greater flexibility to draw down their super balances to cope with cost-of-living pressures, and rejects claims she wants the scheme dismantled entirely.
What happens next?
Having cleared the Senate, the amended reforms are due to return to the House of Representatives for final sign-off, a step expected to occur within the current sitting period. Government officials had earlier anticipated the legislation would complete its full parliamentary passage within roughly two weeks of the Senate committee's report and the Coalition deal being struck, according to the same committee summary. Implementation is then expected to proceed in stages, with new planning arrangements slated to begin from 1 April 2027 and further eligibility changes to follow from January 2028.
Key Facts
- 63 government amendments were made across both houses to secure Coalition support for the NDIS bill.
- The government projects roughly $37 billion in savings over four years from the changes.
- The Senate inquiry received more than 4,500 submissions and held six days of hearings.
- New planning changes are expected from 1 April 2027, with eligibility changes following in January 2028.
- The bill returns to the House of Representatives for final approval after clearing the Senate.
