BREAKING: A shocking new report reveals that one in three participants in the National Disability Insurance Scheme (NDIS) are using less than half of their available entitlements. This urgent finding raises critical questions about whether billions of dollars in disability support are effectively reaching the individuals who need it most.
According to data compiled by the e61 Institute, the average NDIS participant utilizes only 58 percent of their allocated budget. Alarmingly, 34 percent of users leave over half of their funds untouched, indicating a severe misalignment in service accessibility and planning.
Pelin Akyol, research manager at the e61 Institute, states, “Some degree of underspending is expected because plans need buffers so participants can get all the care they need. However, 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.”
These findings starkly contrast with the National Disability Insurance Agency’s report from June, which indicated that 74 percent of budgeted funds across the scheme are being utilized. Experts warn that this headline figure masks significant disparities among individual participants, especially since a small segment of users in supported independent living accounts for a disproportionate share of funding expenditure.
The study analyzed data from nearly 6,000 finished plans between January 2025 and September 2025, revealing that geographical location plays a minimal role in under-utilization. Participants in outer regional areas spent only six percent less than those in major cities.
However, awareness and familiarity with the system appear to significantly impact spending habits. Dr. Akyol notes, “We see a clear learning curve as participants use more of their plan the longer they are in the scheme.” This suggests that as participants grow more accustomed to the NDIS framework, they are likely to utilize more of their allocated budgets.
Moreover, the structure of funding influences outcomes. Participants who can transfer funds between supports often achieve better alignment with their real-world needs. In contrast, those confined to rigid spending categories are more likely to see their funds remain unused. As Theo Gibbons, research economist at the e61 Institute, emphasizes, “If plans are too rigid, they can leave participants with unused funds even when they still have unmet needs.”
The NDIS currently provides funding to over 500,000 Australians living with permanent and significant disabilities, costing the Australian government more than $40 billion annually. As discussions continue about the future of disability funding, the spotlight is on how effectively these resources are being allocated and utilized.
As this situation develops, stakeholders are urged to reassess the NDIS framework to ensure it meets the needs of all participants. Public conversations and policy revisions may be necessary to address these concerning trends, ensuring that funding reaches those it is intended to support.
The implications of this report are profound, affecting not only the current participants but also shaping future policies and funding structures within Australia’s disability support system. Stay tuned for further updates as this story unfolds.
