When the NDIS reforms were going through, part of the agreement was that the states and territories would take on some of the foundational supports within the NDIS, in exchange for more health funding.

This agreement for an additional $1.7bn (over one year) is happening ahead of any agreement on foundational supports.

Health minister Mark Butler said:

“The Prime Minister’s right – the Commonwealth’s very satisfied with progress on NDIS rule reform and also the development of foundational supports. But states and territories understand that the conclusion of a 5-year deal – which is what they’re after and what was committed by the Prime Minister at the National Cabinet meeting in December 2023 – remains tied to that NDIS reform process continuing as it would. This is a 1-year rollover. It does not deliver exactly what the states would have got in the first year of a 5-year agreement. The negotiation of the 5-year agreement continues between jurisdictions and remains tied to positive progress on NDIS reform.“