NDIS Overhaul to Save $35bn Over Four Years, Says Health Minister
Good morning, Nick Visser here to snag the blog. Let’s get to it.
Sweeping changes to the national disability insurance scheme (NDIS) are projected to save the federal budget $35 billion over four years, confirmed Health Minister Mark Butler.
Butler announced a major overhaul yesterday, including changes to eligibility rules expected to remove at least 160,000 participants from the program by 2030.
Instead of costing more than $70 billion at the end of the decade, the NDIS budget will be reduced to about $55 billion.
In an interview on ABC’s 7.30 program last night, Butler said the changes would save the federal budget approximately $35 billion over four years.
The minister clarified that this figure includes a recent $13 billion blowout in the scheme’s projected cost over the four-year period, meaning the net saving is closer to $22 billion.
"It’s a significant figure but one that we are confident is necessary to get this thing back on track. After all, what we are trying to do is secure its future in the long term."
Butler met with state and territory disability ministers following his announcement to the National Press Club, marking the first time his counterparts had been briefed on the shakeup.
He noted that the disability ministers requested further details, including the modelling underpinning the changes.
"But they were up for the challenge. Disability ministers are talking with participants every single day. They’re talking with disability providers, and all of them are saying they want a better quality of service delivered to them.
They want, they want this sort of free-for-all market that’s grown up over the last 10 years or so, cleaned up. They want to see the fraud cleaned up. They want to see more integrity into the system. So there’s a lot of enthusiasm for the job of getting this thing back-on-track."
Cheaper Homes Outpace Luxury Price Growth
Properties valued below the price caps of the federal government’s 5% deposit guarantee scheme are rising faster than more expensive homes, according to analysis by Cotality.
Over the first six months since the scheme’s expansion, homes under the price caps increased in value by 6.7%, outpacing the 3.6% rise recorded for properties valued above the caps.
The 5% guarantee reduced deposit requirements for loans, shortening the savings wait time for many first-time homeowners.
The government significantly raised price caps in October, allowing first home buyers to purchase properties worth up to $1.5 million in Sydney and $950,000 in Melbourne.
Cotality suggests several factors may explain the price movements, including some buyers fast-tracking their purchases in anticipation of increased competition. Investors have also been very active and may have bid up prices, according to the property analytics company.
Cotality states:
"Overall, it is likely the first home buyer deposit guarantee will gradually lose its stimulatory power, with more homes exceeding the price thresholds and a growing portion of prospective buyers running into a finance hurdle that is set to rise further."
There have been mixed reactions to the low deposit scheme. While it helps first homeowners better compete with investors, economists have warned it may contribute to rising house prices, making it harder for prospective buyers to find affordable homes.
Rental Market Tightest on Record as Rents Rise $25 a Week
Figures from Domain indicate that the rental market is tighter than ever, adding $25 a week to the typical advertised rent price.
Median rents in capital cities have climbed to $680 a week for houses and $675 for units. Price growth had slowed in 2025 but has now picked up in most cities.
The national vacancy rate is at a record low 0.7%, with levels of vacant rental stock at record lows in Sydney (0.6%), Perth (0.3%), and Darwin and Hobart (0.2%). Melbourne, the city with the highest vacancy rate, is sitting at just 1%, down from 1.6% in December.
With so few properties on the market, rents would be growing even faster if renters could afford to pay more – but they cannot, says Domain’s chief residential economist, Dr Nicola Powell.
"Vacancy rates are lower than ever and supply remains incredibly tight, but rent growth is no longer accelerating everywhere. That tells us households simply can’t stretch any further."
Domain found median advertised rents are up $30 a week in the first three months of 2026, reaching $680 a week, in data also released today.
Good morning and welcome to our live news blog. I’m Martin Farrer with the top overnight stories and then it will be Nick Visser with the main action.
Mark Butler told the ABC last night that the Albanese government’s sweeping changes to the national disability insurance scheme are expected to save the federal budget $35 billion over four years. More coming up.
Data on the housing market today shows that properties valued below the price caps of the federal government’s 5% deposit guarantee scheme are rising faster than more expensive homes. Another set shows how the rental market is tighter than ever before. Details coming soon.
