Disability groups lose funding amid major NDIS changes

Several well-respected disability advocacy organisations across Australia have lost their government funding as the Department of Health replaces a decades-old support program. The funding cuts arrive during a period of high demand for advocacy services while the federal government reduces spending on the National Disability Insurance Scheme (NDIS). Villamanta Disability Rights Legal Service in regional Victoria is losing 30 per cent of its total funding. CEO Annie Nash said the loss forces the service to stop taking new clients and will lead to job cuts. She warned the decision helps unlawful providers, pointing out that demand has grown due to recent NDIS cuts. Disability Advocacy Network Australia acting CEO Cherry Baylosis said the changes are out of touch and will leave vulnerable people to handle crises alone without proper support.

Department Response and NDIS Overhaul

The Department of Health stated the new funding model follows recommendations from the disability royal commission. Up to $184 million is available across six financial years up to 2031-32 through an open competitive grant process. Current organisations will keep receiving funds until February 2027 to help them transition. Meanwhile, the Albanese government plans to remove 240,000 participants from the $50 billion NDIS over four years to save more than $38 billion, aiming to lower scheme growth to 2 or 3 per cent per year.

Context

Independent disability advocates help participants challenge plan cuts, find emergency housing, and deal with complex legal or medical systems. Government funding shifts in major support programs often spark intense debate over how vulnerable communities access help during transitions.