The National Disability Insurance Scheme (NDIS) plays a critical role in supporting people with permanent and significant disability, but it continues to grow at a high rate and participants are not always receiving high quality care. 

This impact analysis considers four potential policy options.

1. Option 1: Do nothing (status quo)
2. Option 2: Light touch reform to existing support coordination market. Reform option to require mandatory registration for support coordination providers. 
3. Option 3 (preferred): Commission a new support coordination service with capped program expenditure. Reform option would commission support coordination functions as a new support coordination and connection service. 
4. Option 4: Commission a new support coordination service with a greater cap on program expenditure. Reform option would commission support coordination functions as a new support coordination and connection service, with a tighter limit on funding available to deliver the new service. 

A balanced approach of eligibility and support changes (Option 2) will help restore the scheme to be in line with the original intent and other social support programs funded by the Australian Government. It will do this by tightening Scheme eligibility requirements and providing more clarity about the reasonableness of funding levels for participants. Establishing an NDIS‑commissioned panel of plan management providers (Option 2) and commissioning support coordination services with capped funding (Option 3) will address key issues around service quality, integrity and efficiency. 

Overall, the preferred reform options will enable those with permanent and significant disability to access the scheme and receive reasonable and necessary supports, though will reduce the number of NDIS participants and some of the supports participants can receive through the NDIS. These measures will contribute to scheme sustainability.

Assessment of the impact analysis: adequate.