Overview
- The bill, introduced Thursday and sent to a Senate inquiry due to report in June, faces opposition from the Greens and will likely need Coalition support to pass.
- It tightens the ‘permanence’ test by requiring people to exhaust other appropriate treatments before entry, ends automatic access lists, and defines a new ‘functional capacity’ test to be phased in from January 2028 after technical advice and state agreements.
- The minister would gain authority to cut funding across categories and set prices, with some determinations not open to merits review, and has flagged lower social and community participation budgets and a small trim to average therapy hours.
- Enforcement would expand as the NDIA gains powers to probe suspected crime and issue civil penalties for false claims or poor record‑keeping, with new rules requiring records to be kept and claims lodged within 90 days and pricing that nudges spending toward registered providers.
- Limited automation of administrative decisions would be allowed under the NDIA chief executive with human oversight, and the government is counting on about $38 billion in four‑year savings as details are refined through consultation.