UPDATE: A new report reveals that one in three NDIS participants utilize less than half of their entitlements, raising serious concerns about the effective distribution of billions of dollars allocated for disability support. The findings, published by the e61 Institute, indicate that the average participant uses only 58 percent of their available budget.
The urgency of these findings is underscored by the staggering statistic that 34 percent of users leave more than half of their allocated funds untouched. This discrepancy questions whether the National Disability Insurance Scheme is truly meeting the needs of over 500,000 Australians living with permanent and significant disabilities.
Pelin Akyol, research manager at the e61 Institute, stated,
“Some degree of underspending is expected because plans need buffers so participants can get all the care they need. But such a large degree of underspending among a third of participants may suggest that participants are struggling to access services or plans are not always aligning with people’s needs.”
Earlier this year, the National Disability Insurance Agency reported that 74 percent of budgeted funds across the scheme had been spent, but the latest data reveals a stark contrast in individual spending habits. The agency’s figures primarily reflect the usage by those in supported independent living—who represent only 5 percent of participants, yet account for a disproportionate share of spending.
The e61 Institute study analyzed nearly 6,000 finished plans from January 2025 to September 2025, showing that geographic location plays a minor role in spending differences. Participants in outer regional areas spent approximately 6 percent less than their urban counterparts, suggesting that awareness and familiarity with the NDIS have a more significant impact on spending.
Dr. Akyol noted,
“We see a clear learning curve as participants use more of their plan the longer they are in the scheme.”
This indicates that many participants may require more support and information to fully utilize their entitlements.
Moreover, how funding is structured significantly influences outcomes. Participants who can shift funds between support categories often align their spending more effectively with their needs. In contrast, those with more rigid funding categories tend to have unused funds, leaving them vulnerable to unmet needs. According to Theo Gibbons, research economist at e61,
“If plans are too rigid, they can leave participants with unused funds even when they still have unmet needs.”
The implications of these findings are monumental, as the NDIS represents one of the fastest-growing areas of federal spending, costing over $40 billion annually. Authorities and stakeholders must urgently address these discrepancies to ensure that the funds intended for support are reaching those who need them most.
As discussions around NDIS funding and effectiveness continue, the focus will be on how to enhance service accessibility and participant education. With the scheme under scrutiny, immediate action is necessary to adapt plans, ensuring that funds are utilized effectively and that all Australians with disabilities receive the support they deserve.
Stay tuned for updates on this developing story.
