The federal government's 2026 NDIS overhaul has raised urgent questions for people living in Specialist Disability Accommodation and those relying on smart home technology funded through the scheme. This article focuses specifically on what the changes mean for SDA participants, assistive technology, and the disability housing sector in Western Australia.
For a full overview of all the changes across every participant type, read our companion article: NDIS 2026 Overhaul — What Every Participant and Provider Needs to Know.
The Key Numbers Behind the Overhaul
Health Minister Mark Butler has announced reforms targeting:
- $35 billion in savings over the next decade
- 160,000 participants to be removed from the NDIS
- Average annual plan spend cut from $31,000 to $26,000 (a $5,000 reduction)
- Total participant numbers reduced from 750,000 to approximately 600,000
The changes will be introduced through the National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill, to be tabled after the May 2026 Federal Budget. You can follow the bill's progress on the Australian Parliament House website.
Will SDA Participants Lose Eligibility?
This is the question most frequently asked by Innogreen clients, and the short answer is: SDA participants are not the primary target of these reforms.
The eligibility changes are designed to remove participants with lower support needs and higher functional capacity — those who qualified under the previous diagnosis-based eligibility list rather than through demonstrated need for funded supports.
SDA participants by definition have extreme functional impairment or very high support needs. The SDA design category framework — which includes High Physical Support, Robust, and Improved Liveability — was built around participants with complex, long-term disability support requirements. These are precisely the participants the NDIS is designed to continue supporting.
To understand whether you currently qualify for SDA, our guide to SDA eligibility explained walks through the criteria in plain language.
That said, every participant will eventually be assessed under the new functional assessment tool being introduced in January 2028. If you are in SDA, your assessors will be evaluating how much support you need in daily life — and the evidence base for SDA residents is typically strong. An OT assessment conducted well before any reassessment date will help establish and document that evidence clearly.
What the $5,000 Plan Cut Means for Your Supports
The government's plan to reduce average annual spend from $31,000 to $26,000 is an average across all participants. For SDA residents, whose plans often cover complex daily living supports well above that average, the impact depends on exactly how the budget reduction is applied.
Confirmed cuts will specifically target the social and community participation category. This funding line covers:
- Community access activities
- Group social programs
- Transport to participate in the community
If your plan includes significant social and community participation funding, this is the area most likely to be reduced.
Core supports and capacity building related to high physical support needs — personal care, daily living assistance, assistive technology, and home modifications — have not been specifically flagged for cuts and remain central to the NDIS's purpose.
For the full picture of what NDIS currently funds and what it does not, see our guide: NDIS Supports — The In and Out List Explained.
Smart Home Technology and Assistive Technology Funding
Smart home technology funded through the NDIS falls primarily under Assistive Technology in the Capital Supports budget. This is separate from the social and community participation category being cut.
For a deep dive into how this budget category works, read: NDIS Capital Supports vs Assistive Technology — What Is the Difference?
For participants using:
- Environmental Control Units (ECUs) — voice-controlled or switch-accessible home automation. See our guide: Smart Home Voice Control and Automation Through the NDIS
- Smart home security systems — video doorbells, remote monitoring, automated door access. See: NDIS Smart Home Security Systems
- Communication technology — video calling systems, smart displays
- Automated lighting, blinds, and temperature control funded as AT
These supports are justified on functional grounds — they directly replace or reduce the need for human supports by enabling participants to do things independently that they otherwise could not do. A well-documented assistive technology assessment supports this justification clearly.
There is also growing guidance on whether the NDIS can fund mainstream smart home products such as Amazon Echo or Google Nest — this remains an important question given the reforms and is addressed in detail in that guide.
The new functional assessment tool, when it arrives in 2028, will look at what you can and cannot do in daily life. Smart home technology that demonstrably increases your independence — reducing reliance on support workers for tasks like answering the door, controlling the environment, or communicating — is exactly the kind of support the reformed NDIS intends to fund.
Provider Registration: What Changes for Innogreen Clients
The reforms expand mandatory registration requirements for providers in higher-risk categories, including:
- Personal care
- Daily living supports
- Supports provided in closed settings such as SDA properties
As a registered NDIS provider, Innogreen already operates under the full NDIS Quality and Safeguards Commission framework. Our clients will not face any disruption to their services as a result of the registration changes.
However, if you currently use unregistered providers for personal care or daily living supports within your SDA property, those providers may be required to register under the new rules. It is worth reviewing your support arrangements with your support coordinator ahead of the July 2026 implementation date.
The End of Unspent Funds Roll-Over
Under current rules, unspent NDIS funds carry over from one plan period to the next. This will end under the new legislation.
For SDA residents with complex support needs, plan budgets are typically well-utilised and roll-over savings are less common than for lower-needs participants. However, if you have been holding back unspent funds for a planned assistive technology purchase or home modification, now is the time to move forward with that spending before the roll-over is removed.
What About the Thriving Kids Program and Families in WA?
The government has proposed redirecting children with mild to moderate autism or developmental delays off the NDIS and into the new Thriving Kids program by July 2027. This affects families, not current adult SDA participants.
Critically, Queensland has already declined to participate in the Thriving Kids program, and Western Australia has not yet confirmed its position. Given that the program does not yet exist, there is significant uncertainty for families of NDIS-funded children in WA.
If you are supporting a family member with autism who is currently on the NDIS, we strongly recommend working with a support coordinator now to document their support needs in functional terms — not just diagnostic terms — ahead of the 2028 eligibility reviews. If a plan decision is made you disagree with, our guide to appealing an NDIS decision explains your rights and the review process.
What Living Independently With SDA Looks Like
These reforms reinforce why purpose-built, technology-enabled housing matters so much. For high physical support participants, the ability to control their environment — lighting, temperature, doors, security — through integrated smart home systems is not a luxury. It is what makes independent living possible.
Our article on living independently with High Physical Support SDA in Perth explores this in detail, including what to look for in an SDA home and how smart home technology integrates with support planning.
If you are looking for SDA options in Perth, our guide to how to find SDA housing in Perth is a practical starting point.
A Practical Timeline for WA Participants
| Date | What Happens | |---|---| | May 2026 | NDIS Amendment Bill introduced in Parliament | | July 2026 | Some changes begin taking effect (details TBC) | | July 2027 | Proposed transition of children with mild to moderate autism to Thriving Kids | | January 2028 | New functional assessment tool introduced for eligibility reviews |
Innogreen's Position
Innogreen operates at the intersection of SDA housing and smart home technology — two areas that remain central to what a well-functioning NDIS needs to deliver.
We support participants with high physical support needs who rely on purpose-built SDA homes and integrated smart home systems to live independently. These participants are not the target of the eligibility cuts. The homes we build and manage are designed specifically for the cohort the NDIS will continue to prioritise.
We are monitoring the legislation closely and will update our clients, residents, and referral partners as further details are released after the May Budget.
If you have concerns about how the 2026 NDIS changes may affect your current supports, housing, or smart home technology, speak with our team. We are happy to help you understand your options and document your support needs clearly ahead of any future reassessment.
This article is based on information available as of April 2026 and reflects announced policy, not yet passed legislation. We recommend consulting your support coordinator or LAC for advice specific to your situation. For official information, visit ndis.gov.au.