Federal Budget 2
Policy and Advocacy update – 7 May 2026

Published: Thursday 7 May 2026

Countdown to the Federal Budget

The 2026 Federal Budget will be handed down on Tuesday 12 May, with a significant focus expected on the future of the NDIS and upcoming reform measures, which will be focused on four pillars:

  • Fighting fraud and stopping rorts
  • Slowing rapid costs increases
  • Clearer eligibility requirements
  • Delivering quality services and support to participants

We know many members are watching these developments closely and considering what they may mean for occupational therapy, your work, and the participants you support. We will be closely reviewing the Budget announcements and any related NDIS legislation introduced in the days that follow.

Next week, we’ll provide members with a full update, including analysis of key changes and what they could mean for the profession. As always, OTA will continue advocating strongly for occupational therapists and the essential role you play across the NDIS and broader health and care systems.

Members are encouraged to join our upcoming NDIS Reform Update Member Forum on Friday 15 May, where we’ll discuss the latest developments and hear directly from members about your experiences, concerns and questions. Please register here.

If you have questions you’d like considered as part of our analysis or the forum discussion, please email policy@otaus.com.au.

OTA responds to Minister’s comments on NDIS workforce redistribution

OTA is aware of recent media coverage following comments from Health and Disability Minister Mark Butler on upcoming NDIS reforms and the potential redistribution of the allied health workforce.

Our position on this is clear and we will continue advocating strongly for our members and the participants you support every day. Occupational therapists are central to the NDIS. They assess how disability affects everyday life and deliver capacity‑building supports that build skills, independence and participation. Redistributing OTs will not fix widespread workforce shortages. Australia does not have enough OTs across the NDIS, aged care, hospitals, mental health and veterans’ services.

Read our full our response to the Minister’s comments here.

Victorian Budget 2026–27

The 2026-27 Victorian Budget was handed down on 5 May. OTA has reviewed the budget to identify measures relevant to occupational therapy and our advocacy ahead of the Victorian election.

The Budget includes continued funding for the Speech Pathology and Occupational Therapy Student Program, with $4.4 million listed for the program within a broader health workforce package. The Premier’s statement also refers to a further 250 speech pathology and occupational therapy student grants.

The Budget also includes Victoria’s $2.4 billion over five years commitment to jointly fund Foundational Supports, including Thriving Kids for children aged 8 and under with developmental delay and/or autism with low to moderate support needs. Other Foundational Supports, including future psychosocial supports, are still being developed.

Other areas relevant to OTA include investment in disability support in schools, mental health, aged care, community health, care closer to home and regional workforce initiatives.

OTA will use the Budget to inform our advocacy ahead of the Victorian election.

Read the Victorian Budget papers and the Premier’s healthcare statement.

Contribute to the Australian MND Guideline – Join the Clinician Advisory Group

Occupational therapists have a vital role to play in improving care for people living with motor neuron disease (MND). Contribute your expertise by becoming a member of the Clinician Advisory Group developing the Australian MND Guideline. Allied health professionals with experience in MND across acute, community and primary care settings are encouraged to apply. This is a valuable opportunity to ensure occupational therapy perspectives are embedded in national guidance and to help shape better outcomes for people living with MND.

Visit the MND Guideline to learn more and apply.

OTA advocates for stronger mental health supports in Tasmania

OTA has made a submission to inform Tasmania’s next Mental Health Strategy. We called for a clearer psychosocial support pathway outside the NDIS, stronger community-based multidisciplinary services, better recognition of OTs’ mental health capability, and workforce settings that support supervision, graduate pathways, rural access and retention.

Read the submission on our website.

Thriving Kids update

The Commonwealth and State and Territory governments have agreed on a National Model for Thriving Kids. The WA Government, through the Department of Communities, is now moving into the next stage of consultation. Service providers and relevant organisations are invited to share their insights and experience by completing an online survey. This aims to build a clearer picture of early intervention services across WA, including where services are delivered, how families are reached in metropolitan, regional and remote areas, and opportunities for innovative approaches.

Find out more and complete the survey before 5pm Monday 11 May.

Have your say: Dementia Australia Support at Home survey

Are you an occupational therapist delivering services to clients with dementia? Dementia Australia is keen to hear from service providers, clinicians and other health professionals across the sector, as well as people living with dementia and their carers. Your input will help inform Dementia Australia’s submission to the Support at Home senate inquiry, and form part of ongoing feedback to Government, on the impacts of the 1 November aged care reforms for people living with dementia.

Start survey here.

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