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What does the NDIS overhaul mean for you?

The government is set to slash the cost of running the National Disability Insurance Scheme (NDIS) under sweeping new changes.

Health Minister Mark Butler told the National Press Club today that the scheme would be redesigned with "hard but unavoidable" changes.

Butler also handed down decisions to trim aged care spending ahead of the federal budget.

So what does this mean for NDIS participants and older Australians?

READ MORE: Government flags crackdown, cost-cutting in NDIS

Health Minister Mark Butler announced the changes at the National Press Club today.

Average plan spend to drop from $31,000 to $26,000

The total cost of social and community spending will be "reset" under the changes.

This section of the NDIS provides opportunities for connection and community participation.

According to Butler, the average plan spend this year is about $31,000, which is up from about $14,000 five years ago.

"Over the next two years our changes will bring that figure back down to about $26,000, back to where it was in 2023," he said.

"Without our changes, that figure will have been more like $33,000."

Mandatory registration for some providers

The government will expand the categories of mandatory registration to include "higher risk activities" such as personal care, daily living supports and supports provided in closed settings.

However Butler said not every provider needs to be fully registered.

"We don't need to monitor retail purchases from a chemist the same way we monitor close personal care of vulnerable people," he said.

Showering, continence management and dressing to become free of charge

The government plans to invest around $1 billion to change the treatment of showering, continence management and dressing under the Support at Home program for older Australians.

The investment will make this care free of charge alongside clinical care.

"Dignity in older age, through a world class aged care system, is the least our parents and grandparents deserve," Butler said.

Private health cover subsidy for Australians over 65 to be scrapped

Private health cover for Australians over 65 is currently subsidised at a higher rate than other Australians.

The government plans to remove this subsidy and divert it into aged care.

"It's simply not the best way to spend precious taxpayers' dollars on behalf of older Australians when we need to do so much heavy lifting in aged care," Butler said.

"So, this budget will return the rebate for older Australians back to the level paid for everyone else and divert the money back into aged care.

"I understand this won't be a welcome decision for many, but it's the right thing to do."

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