NDIS Reforms Leave People with Disabilities Stuck in Hospitals

Several Australians with disabilities have been forced to remain in hospital beds due to funding cuts under the National Disability Insurance Scheme (NDIS), even though they are medically ready for discharge.

Emily Livingstone from Western Australia, who has relapsing-remitting multiple sclerosis, could have been discharged, but her new NDIS support plan only allocates two hours of daily living assistance per day, insufficient for safe independent living in the community. Livingstone described feeling “like being in prison,” with her physical condition deteriorating due to prolonged hospitalization and lack of appropriate daily support.

The National Disability Insurance Agency (NDIA) responded that while some participants face challenges, the NDIS is designed to supplement mainstream services (such as housing) rather than replace them. State and territory governments remain responsible for services for the homeless and provision of temporary or long-term housing.

As of March 31, 2024, 2,689 NDIS participants nationwide remained hospitalized, of whom more than 1,125 (over 40%) were medically ready for discharge but could not leave due to lack of home support or suitable placements. By June 2025, the average wait from medical clearance to actual discharge was approximately 16 days. The situation is partly due to legislative reforms at the end of 2024, which revised certain disability definitions and participant plan reassessment processes, resulting in substantial reductions in support hours. Advocates warn this could force participants into group homes, prolonged hospitalization, or even life-threatening situations.