Australia’s 2025 Federal Budget: Navigating the Balance Between Increases and Cuts?
The 2025 Australian Federal Budgets have been released. As caring companions to many navigating the NDIS system we are so excited to learn that NDIS growth is projected at 8% year on year until 2029! However, under the new budgets administrative services and departments will experience some detrimental cuts. If you or someone you love depends on these services, we’ve broken down the changes and let you know exactly what they mean for you.
Participant Funding is Increasing
There’s a huge win for participants in this year’s budget – funding for NDIS participants is increasing:
- The total social services budget is rising from $55.6 billion to $69.1 billion by 2028-29.
- NDIS-administered funding will jump from $46.2 billion to $62.2 billion.
- By 2028-29, over 90% of the Department of Social Services (DSS) budget will be allocated to the NDIS.
Increased funding should result in greater services for people living with a disability, which is definitely something to celebrate!
Cuts To Administrative Departments
Unfortunately, it’s not all good news. The new Federal Budgets will see major cuts to the administrators and departments that manage these services. Here’s what to expect:
- The Department that oversees Social Services will lose $50 million next year, and $152 million the year after.
- The National Disability Insurance Administration will lose $1.1 billion over the next few years.
- Services Australia, responsible for delivering payments and support, will see its budget decrease from $6 billion to $4.7 billion.
While we can’t predict the future – as support coordinators and plan managers who are experienced in this area: it’s fair to say that fewer resources and tighter budgets will most likely have a significant impact. More time pressures, longer waiting times, processing delays and staff shortages are going to add to an already overwhelmed system.
Additional Challenges
Earlier this year, NDIS CEO Rebecca Falkingham raised concerns when she revealed that NDIS don’t have enough time to read every participant’s medical report. This sparked outrage in the community, with individuals rightfully wanting to know if it’s fair to be rejected or given funding without full knowledge and understanding of a person’s situation? Not to mention, the time, money and effort that goes into providing these reports – only for them to be neglected.
The Australian Government has also introduced several measures to enhance fraud prevention within the NDIS. Since 2024, they have allocated $125 million to fraud prevention, to ensure that NDIS funds are used appropriately and reach the intended participants. While this gives individuals navigating the NDIS hope that the government supports them and is committed to safeguarding the integrity of the NDIS, it has resulted in a significant number of providers shutting down already.
Yes – there’s a lot happening in the NDIS right now. With change comes opportunities for growth! With the right approach, these efforts could create a more accessible and sustainable system that benefits both providers and participants!
A Winning Companionship
Budget cuts, time constraints, and fewer providers can feel overwhelming—but with Achora, you’re never alone. We are dedicated to being a companion that ensures fast, reliable support without delays or shortages. Our team is available whenever you need us, responding immediately and delivering solutions within 48 hours. With your dedicated support coordinators and plan managers handling the details, you can focus on what truly matters—achieving your goals.
We understand these changes are a lot to take in. For individuals, families, and providers, staying informed is important. At Achora, we work tirelessly to stay ahead of NDIS updates, policy changes, and new opportunities for you. So you always have the latest information and access to the best resources available. Don’t miss out on any updates. Follow our social media channels or check back on our website.
