One of the architects of the NDIS is urging states and territories to work together to institute vital reforms to the scheme, as premiers and chief ministers warn looming changes could leave people with a disability worse off.
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Laws before federal parliament aim to contain budget blowouts of the NDIS by limiting spending growth to eight per cent, as well requiring those on the scheme to complete needs-based assessments.
Under the changes, which followed a review of the scheme, money allocated to participants can only be spent in accordance with NDIS plans unless needs "significantly change", while a list of services included in funding will also be created.
In a submission to a federal inquiry examining the proposed changes, state and territory leaders said they were worried those with disabilities might not get adequate support.
"Sates and territories share significant concerns with the provision of the (proposed laws) and the potential impacts on people with disability," the submission said.
"We are genuinely worried that this bill undermines the vision of the NDIS review."
But co-designer of the NDIS and one of authors of the review Bruce Bonyhady told an inquiry examining the reform it was critical that the changes were implemented.
"This is a case where governments now all need to work together to deliver these reforms, they need to be done at the same time, they obviously need to work together," Prof Bonyhady said.
"The status quo was not an option, people with disability and their families are not at the centre of the scheme, they find the current planning processes stressful and traumatising ... staying as it is today is not sustainable."
NDIS Minister Bill Shorten said the federal government would work with states and territories on implementing reform, but stressed the changes were urgent.
"People with disability don't have time to wait ... the presumption that somehow people with disability have got years to wait until some levels of government engage in their needs is wrong," he told reporters in Perth.
"We want to get outcomes for people with disability. But a scheme can't keep growing at 20 per cent per year, one of the solutions that have been put to us by people with disability is that we need to build services outside the NDIS."
Prime Minister Anthony Albanese insisted funding for the NDIS won't be reduced.
"The NDIS needs to be made sustainable. What we're talking about here isn't something that's any reduction, it is a lowering of the projected increase in NDIS funding, which would see it unsustainable," he told reporters in Sydney on Tuesday.
"We want to make sure that everyone with a disability gets the support that they need so they can fully participate in Australian society. That's the objective of the NDIS."
The cost of the NDIS has been predicted to surge to $50 billion by 2025/26, higher than the annual bill for Medicare.
NSW Premier Chris Minns called for more transparency from his federal Labor counterparts on proposed changes to the NDIS that could leave states responsible for providing more services.
"We need to know how much it will cost and how many people it will affect, and what services we will be obliged to roll out," he said.
"The idea that the feds will introduce a change that we don't have any input in, or South Australia doesn't have any input in, or Victoria or Queensland - none of us are going to accept that."
Disability groups will appear before the parliamentary committee on the NDIS later on Tuesday, where they will be asked on their reaction to the proposed changes.
Australian Associated Press
