Major shake-up of NDIS to cut 150,000 off rapidly-growing scheme

Accessing the scheme will now be based on “significant impacts” to day-to-day living, rather than simply relying on a diagnosis alone.

“These so-called access lists were put in place to get the scheme up and running, but they were always supposed to make way for an objective assessment tool,” Butler said.

“The diagnosis gateway has funnelled people onto a scheme that was never designed for them.”

NDIS providers will now be required to be registered, after Butler previously aired his alarm that more than 90% were operating unregistered.

But Butler ruled out introducing means testing or co-contribution payments in the scheme.

“This scheme was always premised on universal access … I still think that’s the right approach to a scheme for lifelong supports, philosophically,” Butler said.

Private health care insurance rebate will for Australians over 65 will be scaled back, in a separate shake-up of the aged care system.

Part of the money — $3 billion — will be redirected to invest more in aged care for more beds and packages, after the government backed down from a plan to charge aged care package recipients for showers, dressing and continence care.

The controversial plan had been in place for just six months, though the government accepted it had reversed its decision after patient backlash.

In a rare moment of bipartisanship, the Coalition has backed changes to bring the scheme under control.

What they said: “For the sake of the people the NDIS was created for, we have to make sure it’s sustainable now and for future generations,” Butler said.