Work, welfare and wellbeing around entry into the NDIS

The National Disability Insurance Scheme (NDIS) is one of Australia’s largest social programs, yet questions remain about how it affects participants’ employment, reliance on other welfare payments, and overall wellbeing. Understanding these relationships is essential for assessing the scheme’s long-term sustainability and its role in supporting participation and independence.

Using longitudinal data, this research note outlines the life pathways of participants – describing health, employment and social support trends for individuals prior to and following their initial entry into the NDIS. These pathways show when these supports become available to people, how their circumstances evolve in subsequent years, and whether the supports are going to those facing hardship.

Key findings

• Entry into the NDIS typically follows a period of decline in health and wellbeing. Although health measures (physical and mental) remain low after entry, subjective reporting on vitality gradually improves.
• Before entry into the NDIS, employment rates remained largely unchanged despite deteriorating health, though some individuals tended to leave the labour force altogether. In the years following entry, some individuals transition back into work. Furthermore, average hours worked also increase over time after entry. 
• These health and employment trends also play out in the receipt of other income-based supports. For those on NDIS, receipt of the JobSeeker payment becomes less common while use of the disability support payment rises.