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Coalition seeks citizenship restrictions on NDIS and welfare payments
The Coalition is proposing to limit access to the National Disability Insurance Scheme (NDIS) and 16 other welfare payments to Australian citizens, citing projected spending on non-citizens. The figures add to political pressure on Labor to rein in the scheme, which is a major government expense and central to its plans to improve the budget outlook.
An independent Parliamentary Budget Office analysis found permanent residents and eligible visa holders account for almost 10 per cent of annual NDIS spending. Expenditure on non-citizens is about $4.6 billion now and is forecast to reach $6.45 billion by 2036-37; payments to permanent residents and eligible New Zealand visa holders are projected to rise by about five per cent a year. The Coalition proposes changes from 1 July 2028, with current recipients protected, while Labor says it has made progress containing costs and aims to remove 160,000 participants by 2030.
In short
- Coalition wants welfare access limited to citizens.
- NDIS spending on non-citizens is forecast to reach $6.45 billion by 2036-37.
- Labor is targeting 160,000 fewer NDIS participants by 2030.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The Coalition can argue that citizenship-based eligibility would focus limited public funds on people with the clearest and most lasting ties to Australia, while slowing projected growth in a costly scheme and other welfare payments. Protecting current recipients and delaying changes until 2028 could give affected people and services time to adjust.
The case against
Critics can argue that permanent residents and eligible visa holders may have substantial ties to Australia and disabilities or other needs that do not depend on citizenship, so excluding them could cause hardship and conflict with the purpose of support. They may also question whether broad eligibility restrictions are a fair or effective way to control spending, particularly when the proposal covers many payments and the stated NDIS savings would accrue over time.
Explained simply
Australia’s National Disability Insurance Scheme (NDIS) funds support for people with permanent and significant disability. It is one of the largest items in the federal budget, alongside other welfare payments such as income support.
The federal Coalition is the main opposition grouping, while Labor is the governing party. Some permanent residents and eligible visa holders can receive NDIS support and other payments if they meet the rules; Australian citizenship is not currently required for every payment.
The debate concerns how eligibility rules affect public spending and who can qualify for support. An independent Parliamentary Budget Office analysis has estimated the share and future cost of payments to non-citizens, while the parties differ over how to manage NDIS costs.
Read the full article at the source →
Originally published by Daily Mail as “Row erupts over non-citizens receiving NDIS support with bill expected to soar past $54 billion over the next decade”.