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Labor doctors urge NDIS redesign as autism costs surge

Source: theage.com.au

TL;DR

Two Labor MP doctors call for NDIS overhaul as costs grow over 10 per cent yearly on a $50 billion budget.
Autism participants with mild or moderate needs total 310,000, costing $5 billion or 10 per cent of funds.
Redesign needed to restore social licence, refocus on severe disabilities, and free budget space for productivity investments.

The story at a glance

Two Labor backbenchers, doctors Michelle Ananda-Rajah and Mike Freelander, say the NDIS must be redesigned for integrity and affordability. They spoke as new NDIA data shows surging autism numbers driving participation, ahead of the May federal budget where Health Minister Mark Butler eyes major changes to curb growth to 6 per cent or lower. The scheme now serves 760,000 people but faces scrutiny for wide eligibility and scarce outside supports.

Key points

NDIS costs $50 billion yearly, growing over 10 per cent, making it the federal budget's second fastest-growing program after debt interest.
Autism is the primary disability for 324,200 participants (43 per cent) as of December 2025, up 24 per cent from 2024 and 14 per cent from 2023.
About 310,000 participants have autism or development delays with mild or moderate needs: 93,000 over 15s, 120,000 under 8s, 94,000 aged 9-14.
These lower-needs cases account for $5 billion, or 10 per cent of the budget.
Labor plans to shift mild-needs autistic children to Thriving Kids ($4 billion over five years, rolling out October 2026, full by 2028).
MPs urge Medicare-style fixes: accountability, pricing, checks; multidisciplinary panels for care; stricter provider registration.

Details and context

The NDIS was set up for people with profound disabilities, but broad criteria and few alternatives have pulled in many with lower needs, especially autism cases.[[1]](https://www.theage.com.au/politics/federal/two-labor-mps-both-of-them-doctors-say-the-ndis-must-be-redesigned-20260406-p5zlls.html)[[2]](https://www.smh.com.au/politics/federal/two-labor-mps-both-of-them-doctors-say-the-ndis-must-be-redesigned-20260406-p5zlls.html) Government efforts to fix it over four years have not slowed growth enough, risking public support.

Ananda-Rajah warns of a new industry from "medicalisation of the normal range of neurodiversity". Freelander notes the scheme grew "disorganised and dysfunctional" without oversight. Coalition's Melissa McIntosh claims Labor targets vulnerable people via arbitrary cuts without detail.

Providers welcome refocus on severe needs. Budget pressure from uncertain economy adds urgency.

Key quotes

Michelle Ananda-Rajah: “Consideration should be given to redesigning the scheme by pulling elements from Medicare – accountability, pricing, internal and external checks and balances – to ensure integrity and professionalism go hand in hand while delivering value for money.”[[1]](https://www.theage.com.au/politics/federal/two-labor-mps-both-of-them-doctors-say-the-ndis-must-be-redesigned-20260406-p5zlls.html)
Mike Freelander: “There’s no question the system needs to be redesigned. [...] The problem is the scheme will lose its social licence unless we can make it affordable.”[[1]](https://www.theage.com.au/politics/federal/two-labor-mps-both-of-them-doctors-say-the-ndis-must-be-redesigned-20260406-p5zlls.html)

Why it matters

Unsustainable NDIS growth crowds out federal spending on research, innovation, and economic resilience. For participants and families, it means potential tighter eligibility and shifts to alternatives like Thriving Kids, while providers face stricter rules. Watch the May budget for Butler's changes, though Coalition opposition and implementation details remain unclear.

LANG: en