One of the more significant and sensitive changes in the current wave of NDIS reform begins from 1 October 2026, when budgets for certain social and community participation supports will be reduced. For participants who use these supports, understanding what’s changing, and what isn’t, matters. Here’s a clear, balanced explanation.
What’s Changing
From 1 October 2026, the government will progressively reset budgets for social, civic, and community participation supports, along with capacity-building daily activity supports. According to the government, the aim is to bring spending on these specific supports back to levels broadly in line with 2023, which it says are more consistent with comparable support systems.
In practical terms, the government has indicated that budget allocations for social, civic, and community participation supports will be reduced by 50 percent, and capacity-building daily activity budget allocations reduced by 10 percent.
An Important Clarification
That 50 percent figure understandably causes alarm, so it’s important to be precise about what it means. The government has stated the change won’t necessarily result in a 50 or 10 percent reduction in how much a participant actually spends, because many participants don’t currently use their full budget allocation in these categories. The reset applies to the allocation, not necessarily to actual usage.
That said, for participants who do use these supports heavily, the change could have a real impact, which is precisely why disability advocates have raised concerns about it.
Why the Government Says It’s Doing This
The government’s argument is that social and community participation supports have been funded at a far higher level than comparable programs, and that the current settings haven’t always translated into genuinely improved community participation or inclusion. The reset is part of the broader effort to put the scheme on a more sustainable footing.
The Concern From Advocates
Disability representative organisations have pushed back, and their central concern is about sequencing. The worry is that supports are being reduced before the alternative “foundational supports”, services meant to sit outside the NDIS and catch the gap, are fully designed, funded, and operational. To help support more group-based community activities, the government has committed $200 million to an Inclusive Communities Fund, with consultation starting in July 2026, but advocates argue this needs to be genuinely in place before reductions take effect.
What Participants Should Do
For participants who use social and community participation or capacity-building supports, a few practical steps help. Review how much of your current allocation in these categories you actually use, as this tells you how much the reset is likely to affect you in practice. Keep an eye out for official communication, the NDIA has said it will notify participants before changes affect them. And if you’re concerned about the impact on your supports, your Local Area Coordinator, support coordinator, or a disability advocacy organisation can help you understand your options.
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