The head of the National Disability Insurance Agency Martin Hoffman will step down as CEO from next month.

The NDIA Board says it has accepted Mr Hoffman’s resignation with regret.

Chair of the NDIS board Denis Napthine said Mr Hoffman had led the scheme through an important stage of its evolution and helped improve the experience of participants, as well as boosting investment in digital improvements.

“During Martin’s leadership the NDIS completed the full transition from the old systems – and grew dramatically with now more than 520,000 participants benefiting from the Scheme,” Mr Napthine said.

“He led the Agency with passion, grace and commitment, including managing through the impacts of the COVID pandemic.”

Mr Hoffman said it had been a privilege to serve in the role since his appointment in November 2019.

“I wish the Scheme, and its participants, families, carers and providers all the very best for the future,” he said.

“I thank the amazing staff of the Agency for their dedication and support.”

NDIS minister Bill Shorten, who has been critical of Mr Hoffman in the past, particularly in relation to plans for compulsory independent assessments, thanked Mr Hoffman for his service and wished him well in his future pursuits.

Deputy CEO for Markets, government and engagement Lisa Studdert will step in as acting chief from July 2, with recruitment for the next CEO now underway.

Disability advocates have called for someone with disability to be appointed to the role.

People With Disability Australia said it welcomed Mr Hoffman’s resignation.

“We hope this heralds the beginning of cultural change at the NDIA to ensure true independence of the NDIS from government,” the president Samantha Connor tweeted.

Mr Hoffman, who came into his role at the NDIA with limited disability experience, was previously CEO of NineMSN and led the Services Australia Taskforce for then Minister Stuart Robert.

He was Secretary of the NSW Department of Finance, Services and Innovation for four years from August 2015 and Deputy Secretary at the Commonwealth Department of Industry & Science from July 2010, after joining the APS in March 2009 in the Department of the Prime Minister & Cabinet.