The proposal would provide $1.6 billion over 5 years to fund the transition from the NDIS to foundational supports for people with psychosocial disabilities.

People with psychosocial disabilities who have had NDIS eligibility revoked or who have had psychosocial supports defunded will be eligible to receive transition payments of $2,500 twice a year until foundational supports are fully implemented or until funding runs out.

The proposal would be non-ongoing, not be indexed, distribute funding evenly over 5 years, include departmental funding from within the capped amount, and would start from 1 July 2025.