NDIS Reforms 2026: What they mean for your home modifications

Without a doubt, the changes to the NDIS announced in April 2026 have caused confusion for its users about their funding. Given the reports about cuts in funding for 160,000 participants, it is normal to feel concerned. This is especially true if you rely on the NDIS for your home modifications needs.

But don’t panic! Home modifications are safe, and there is more reason than before to push ahead with home modification plans.

What was announced in April 2026?

On 22 April 2026, a new plan was announced by the Health Minister Mark Butler which has been widely regarded as a ‘reset’ of the NDIS. It aims at bringing back the NDIS to its intended purpose, which is to assist people with severe disabilities in Australia, but at the same time make it sustainable in the long term.

The headline numbers are significant. The government plans to decrease the number of participants in the NDIS program by about 160,000 within the next four years and decrease average plan funding by about $5,000 (from $31,000 to $26,000) over the next two years. The annual growth for the scheme is expected to be no more than 2%.

The major reforms proposed include the following:

• Eligibility reform. From a diagnostic to a functional capacity assessment approach, where the effects of a disability on the individual’s everyday life are considered.
• Budget reductions. Cuts to social and community participation budgets and capacity building supports, taking effect from 1 October 2026.
• Home and living supports. Consultation on commissioning of home and living supports such as supported independent living (24/7 support workers) will begin in July 2026.
• Planning framework. The new NDIS planning framework has been delayed from July 2026 to April 2027, giving participants more time before any changes to how plans are built.

A new bill, the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill, will be introduced to parliament following the 2026-27 Budget.

What’s changing?

Firstly, take comfort in knowing that home modifications are exempt from these cuts.

The April 2026 reforms specifically target social and community participation budgets and capacity building daily activities. From 1 October 2026, social and community participation budgets will be reduced by an average of 16%, with average spend in this category dropping from around $31,000 to $26,000 per year.

Plan management and support coordination funding is also being reduced by 30%.

Critically, the government has explicitly confirmed that supports essential to participants’ critical care and daily living needs will not be affected.

Home modifications are funded through the Capital supports budget, a separate funding component specifically for one-off purchases and modifications like assistive technology, home modifications, and specialist disability accommodation. Capital supports are not in the firing line.

So, if you currently have home modifications funded in your NDIS plan, or you’re in the process of applying for them, the April 2026 reforms do not change that.

What does this mean for NDIS home modifications specifically?

The short answer: home modifications remain fully funded.

The NDIS has been clear that home modifications, custom-built changes to your home to help you live as independently and safely as possible, continue to be an NDIS support. That includes everything from grab rails and ramps to full bathroom renovations, kitchen modifications, and smart home automation.

What is changing, over the longer term, is who can access the NDIS in the first place.

Whereas in the past there was a diagnosis-based eligibility system, the new functional capacity system would see one having to prove his or her disability in terms of how it affects one’s daily functioning, which includes mobility, communication, self-care, and domestic independence, through the use of the I-CAN (Individual Capacity and Needs) assessment.

It is important to point out that while eligibility criteria are currently under development, a technical advisory panel has been established to develop the new framework and most analysts argue that the participants and potential applicants of the new system wouldn’t see their eligibility change until 2028.

What about existing participants?

If you’re already an NDIS participant, your current plan continues as normal. The new planning framework has been delayed until April 2027, which means there’s no immediate disruption to how your plan is built or reviewed. Unspent Capital supports funding rolls over within your plan, and you can still request home modifications to be included at your next plan review.

Why now is a good time to act

The reforms create a clear incentive for current NDIS participants who need home modifications to move on them now, rather than waiting:

1. Your current funding is secure. If home modifications are already approved in your plan, or if you’re planning to request them at your next review, the reforms don’t change that. Acting now means locking in supports under the current framework.
2. Eligibility changes are coming, eventually. While the functional capacity model won’t be in place until at least 2028, the direction of travel is clear. Participants with moderate support needs may find it harder to access the NDIS in the future. If home modifications are something you need, it makes sense to progress them while your access is certain.
3. The planning delay creates a window. The new planning framework has been pushed back to April 2027. That means your next plan review will still operate under existing rules. This is a good time to work with your OT and home modifications provider to ensure your home modification needs are properly documented and included.
4. Demand may increase as participants act quickly. With these changes being integrated into the industry, the professionals and the OTs may see an increase for their service. Starting early with your project ensures that you have less of a wait.

How Restore Home Modifications Can Help

At Restore Home Modifications, we’ve been helping NDIS participants across Melbourne and Victoria modify their homes for greater safety, accessibility, and independence. We understand the NDIS funding landscape — our team supports occupational therapists every day to help participants navigate the process.

We can help you:

• Understand your funding. We’ll help you clarify what’s in your current plan and what you might be entitled to under your Capital supports budget.
• Navigate the application process. From OT assessments to scopes of work and funding applications, we support you at every stage.
• Plan ahead. If your plan review is coming up, we can provide an initial cost estimate to support your funding application, so you’re not starting from scratch when approval comes through.
• Get the job done. Once funding is approved, our NDIS-registered builders complete your modifications with care, compliance, and attention to your specific needs and goals.

The NDIS is changing, but the need for well-designed, expertly built home modifications isn’t going anywhere. If anything, a home that supports your independence is more valuable now than ever.

Frequently Asked Questions

Are home modifications being cut under the April 2026 reforms?

No. Home modifications are funded through the Capital supports budget, which is separate from the social and community participation and capacity building budgets that are being reduced. The government has confirmed that essential care and daily living supports, which include home modifications, will not be affected.

Will my current NDIS plan change because of the April 2026 reforms?

Not immediately. The new planning framework has been delayed until April 2027. Your current plan continues as normal until your next scheduled review.

Will it become harder to access the NDIS in the future?

The government is adopting a functional capacity approach in determining eligibility, where your disability will be evaluated based on how it impacts your life instead of depending on a diagnosis. The new guidelines are yet to be formulated, and any alteration in eligibility requirements is not expected before 2028.

I’m not currently on the NDIS – should I apply now?

If you believe you might meet the criteria, it is best to seek out advice. It is expected that eligibility requirements will tighten over time. You can receive guidance from your support coordinator or disability advocate to understand whether you might quality under the current rules.

How do I get home modifications funded through the NDIS?

The process usually involves an occupational therapist assessment, a scope of works prepared by a registered builder, and approval from the NDIA. At Restore, we can support you through all of these steps. Contact us to find out where to start, or request a quote.

Restore Home Modifications is a registered NDIS provider based in Melbourne, specialising in home modifications for people with disability across Victoria. If you have questions about your funding or your next steps, get in touch with our team or request a quote.