State and territory disability ministers have raised alarm bells over the Albanese government's proposed overhaul of the National Disability Insurance Scheme (NDIS), warning they cannot deliver "like-for-like services" for more than 200,000 participants expected to be shifted off the scheme by 2031. This was reported by Qazaqyia.kz citing The Guardian.

The Albanese government's NDIS bill is designed to dramatically curb the growth of the A$50-billion-a-year scheme by first reducing budgets and then the number of people who can access it from 2028.

The legislation is being scrutinised by a Labor-led Senate committee, which is due to deliver recommendations next week.

In a joint submission uploaded to the NDIS inquiry on Thursday, states and territories agreed that curbing the scheme's growth was important, but warned that goal should not be prioritised over participant safety, wellbeing and life outcomes.

Disability ministers said they were not "meaningfully consulted" on the proposed change and were concerned about unilateral powers given to the federal NDIS minister "signalling a broader shift away" from shared governance.

More than 240,000 participants are expected to be shifted off the NDIS in the four years after new eligibility rules are introduced in 2028, department modelling shows.

Disability ministers criticised a lack of "clearly defined alternative supports" which it said created the "risk of unmet need and cost-shifting to state and territory systems (including health, education and justice), which are not equipped for increased demand and cannot deliver like-for-like services with the NDIS".

"Without a careful, coordinated approach that aligns these changes with broader improvements across the disability support system, there is a significant risk that people with disability will end up in hospitals or other settings that are inappropriate and unable to meet their needs, or have no access to services at all," the submission said.

"States and territories are not in a position, and have made no agreement, to deliver like-for-like services to people who are exited from the NDIS."

The Senate inquiry has been told that planned 50% cuts to social and community participation budgets would increase isolation, segregation and create "unsafe situations" for NDIS participants.

The federal health minister, Mark Butler, refused to be drawn on the concerns when asked on Thursday if the government was prepared to reconsider the scale of the cuts. "The plan that I announced many weeks ago now ... and it was part of the budget that the treasurer delivered in May, was a very well-developed plan that thought carefully about the way in which we could get the NDIS back on track, secure it for the long term, but very much still with people with disability at its centre," Butler said. The minister dismissed the need to extend the Senate inquiry as he reaffirmed his hope to pass the legislation before parliament rose for the winter break on 2 July.