The Integration of NDIS into the Health and Aged Care Portfolio: What Participants and Providers Need to Know

The National Disability Insurance Scheme (NDIS) has undergone one of its most significant structural changes since its creation, with responsibility for the scheme shifting to the Health and Aged Care portfolio under Minister Mark Butler. This move, announced on May 12, 2025, signals a new era for disability support in Australia. For participants and providers alike, understanding the implications of this administrative restructure is critical to navigating the evolving landscape of NDIS services.

Overview of the Administrative Restructure

The NDIS is now housed within the Department of Health and Aged Care, a shift formalised through the Administrative Arrangements Order on May 13, 2025. Prime Minister Anthony Albanese emphasised that this transition aims to strengthen coordination between disability, health, and aged care systems, noting that Minister Butler’s prior experience in mental health and ageing roles positions him well to lead this integration.

Jenny McAllister joins as Minister for the NDIS, focusing on day-to-day operations and stakeholder engagement, while Tanya Plibersek takes over Social Services. This restructuring reflects the government’s broader goal of creating a “super portfolio” to streamline service delivery and address systemic challenges such as provider sustainability and participant safeguarding.

Implications for NDIS Participants

1. Potential for Better Health-Disability Coordination

The integration could improve access to allied health services and reduce gaps in care for participants with complex needs. For example, the Royal Australian College of General Practitioners (RACGP) has long advocated for GP involvement in NDIS planning, which may now gain traction under Butler’s leadership. This could mean:

• Smoother transitions from hospital to community care

• Reduced duplication of assessments between health and disability systems

• More holistic support for participants with chronic health conditions.

However, participants should monitor how these changes affect existing plans. Recent reforms already require stricter alignment of funded supports with NDIS criteria, and further adjustments may follow.

2. Changes to Plan Flexibility

New rules introduced in March 2025 allow the NDIA to modify plan management arrangements if they identify “unreasonable risks” to participants. While self-management remains an option, participants may need to:

• Provide clearer documentation for non-standard supports

• Engage more actively with plan reassessments

• Anticipate potential shifts to NDIA-managed funding if compliance issues arise.

3. Younger People in Aged Care

Participants under 65 living in residential aged care face stricter eligibility criteria under the new Aged Care Act (effective July 1, 2025). Exceptions apply only to First Nations Australians over 50 or those experiencing homelessness. The NDIS will now fund disability-specific supports in these settings, but participants must:

• Confirm their NDIS eligibility through updated assessments

• Work closely with Younger People in Residential Aged Care (YPIRAC) coordinators to explore community housing options.

Implications for NDIS Registered Providers

1. Financial Sustainability Pressures

With 75% of providers considering exiting the NDIS due to financial strain, the portfolio shift brings both risks and opportunities. Providers should:

• Review pricing agreements ahead of the 2025–26 budget cycle

• Engage with the NDIA’s co-design process for assessment and budgeting reforms

• Prepare for potential changes to claiming windows (e.g., two-year limits on backdated claims).

2. Compliance and Reporting Changes

The new Claims and Payments Framework (effective October 2025) requires providers to:

• Submit claims within two years of service delivery

• Use updated support item codes in the myplace portal

• Maintain detailed records to justify late claims during the 12-month transition period.

3. Integration with Health Services

Providers may need to develop partnerships with allied health professionals or aged care facilities. Key considerations include:

• Understanding dual compliance requirements (NDIS Practice Standards vs. Aged Care Quality Standards)

• Training staff on cross-system referral pathways

• Participating in the NDIS Commission’s safeguarding co-design groups.

Actionable Steps for Stakeholders

For Participants and Families:

1. Review Plan Management ArrangementsEnsure your current plan aligns with the NDIS’s updated support lists and risk assessment criteria.

2. Engage in Co-Design OpportunitiesJoin consultations on navigation, budgeting, and safeguarding reforms running through December 2025.

3. Monitor Aged Care InteractionsIf under 65 and in residential aged care, contact Ability First Australia to explore community housing options.

For Providers:

1. Audit Financial Systems Implement software updates to meet the two-year claiming deadline and track plan expiration dates.

2. Strengthen Health Sector Partnerships Attend NDIA-led workshops on integrated care models launching in Q3 2025.

3. Advocate Through Industry Bodies Collaborate with National Disability Services (NDS) to address pricing and sustainability concerns.

Looking Ahead

While the full impact of this portfolio shift will unfold over 12–18 months, early indicators suggest a stronger focus on systemic integration and financial accountability. Participants and providers should prioritise three actions:

1. Stay Informed – Regularly check the NDIS Commission website for updates.

2. Document Everything – Maintain records of plan changes, service agreements, and communications.

3. Seek Advocacy Support – Connect with Disability Representative Organizations (DROs) if facing access barriers.

The NDIS remains a lifeline for over 600,000 Australians. By proactively engaging with these changes, stakeholders can help shape a scheme that balances sustainability with its original vision of choice and control.

Next Steps: Bookmark the NDIS Quality and Safeguards Commission and NDIA websites for real-time updates on implementation timelines.