Prime Minister Anthony Albanese has flagged major structural changes to the estimated $55 billion National Disability Insurance Scheme (NDIS) and the scrapping of key investor tax breaks in the May Federal Budget.

The PM suggested the surging costs of the NDIS mean it requires an overhaul to remain "sustainable" and that this could form a large part of Labor's cost-saving strategy in next month's budget.

"The NDIS was there to assist people who have a permanent incapacity to fully participate in society – that's something we need to value and cherish," he told the Sydney Morning Herald.

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"It's undermined if four out of 10 kids in a class are on the NDIS.

"That wasn't why it has that public support, and we need to make sure that we maintain public support by ensuring it's sustainable."

Health Minister Mark Butler last year claimed that one out of every 10 six-year-olds are on the NDIS in Australia while announcing plans to scale back young people with mild autism on the scheme.

The cost of operating the NDIS – believed to be the government's largest budget blow-out – has doubled since 2021, even outpacing spending on defence.

Spending on the NDIS hit $46.1 billion during the 2025/26 financial year and is forecast to reach $55.1 billion in the next financial year.

But the PM ruled out introducing means-testing for the disability scheme.

"No. Well, we support the universality of the system," he told the Australian Financial Review.

"Eligibility should be about people's disability and enabling them to fully participate in society."

Nine newspapers last month reported that Labor was working to a lesser five per cent growth target for the NDIS this budget.

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Albanese's pre-budget schedule has been derailed by his urgent trip to Singapore and tour through Asia this week, which will see the PM meet with the Sultan of Brunei and Malaysia's Prime Minister Anwar Ibrahim to ensure Australia has a healthy supply of fertiliser and fuel.

The PM said fuel security would also be a focus in the May budget, described as his government's "most important budget to date".

He also flagged the possibility of ending property tax breaks for investors, which may include winding back the capital gains tax (CGT) discount.

Rumours of the government making changes to Australia's generous tax incentives for property investors in the May budget have been growing since the start of the year.

"The system needs to work for people," the PM added.

"You don't change that by rhetoric and by dividing people, which is, what is some of the populist rhetoric.

"You do that by giving people a stake in the economy."

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