NDIS overhaul in doubt as Senate inquiry delayed again, Greens push back

The federal government's plan to bank billions in NDIS savings is in trouble after a Senate inquiry into the scheme's overhaul was delayed for a second time on Friday.

The delay has exposed growing political resistance to the reforms Labor says are essential to rein in the $56 billion scheme's soaring costs. Treasury estimates show a one-year pause would wipe out about $17 billion in expected savings over four years.

The government is relying on the changes to slow NDIS spending growth. The proposed reforms would remove at least 240,000 people from the scheme, shifting many to yet-to-be-established "foundational supports" funded by other services.

Greens senator Jordon Steele-John criticised the delay, saying the government demanded rushed submissions from disability organisations but is now dragging its feet on publishing findings. "Disabled people deserve certainty, transparency and respect," he said.

The Greens are preparing a dissenting position that calls for the legislation to be withdrawn entirely. They argue no participant should be removed until replacement supports are fully implemented, independently evaluated, and proven effective. The party also wants stronger protections against funding caps, automated decision-making, and expanded ministerial powers.

Opposition NDIS spokeswoman Melissa McIntosh hasn't confirmed the Coalition's support, leaving Labor without the numbers to pass the bill through the Senate. She accused both Labor and the Greens of playing politics and said the Coalition would back a six-month inquiry instead.

"We've heard those devastating stories at the inquiry where participants with profound disabilities said they were scared people were going to die," McIntosh told the ABC. "This particular bill does not do anything to address the fraud and the rorting … it seems to be that the government's just going after participants first and foremost, but not cleaning up the system."

Health Minister Mark Butler argued the reforms are necessary to preserve the scheme for future generations. He said discussions with state and territory governments had been constructive, despite some friction. "I accept that this is a series of very significant reforms and for the disability community. A big change, obviously, is going to be confronting," he said at an Adelaide press conference.

Disability groups say evidence presented during the inquiry exposed major flaws in the proposal. People with Disability Australia president Jarrod Sandell-Hay said participants remain deeply concerned about potential consequences but are willing to work with the government to get it right.

The delay comes as a Labor-dominated committee recommended the Senate pass the government's contentious tax changes on negative gearing and capital gains. That report paves the way for the government to try to pass those bills over the next fortnight.

But the NDIS reforms are now at risk of missing the winter parliamentary break, which could blow a hole in the budget. The government had hoped to lock in savings central to its long-term strategy.

"The government demanded that disabled people, their families and advocates rush to prepare submissions and evidence for the inquiry, yet it is now dragging its feet when it comes to publishing the findings." — Greens senator Jordon Steele-John