NDIS Funding Changes: What NDIS Participants Need to Know
The Australian Government announced changes to funding for some National Disability Insurance Scheme (NDIS) supports as part of the 2026-27 Federal Budget. These changes will begin from 1 October 2026 and will be introduced gradually over a 12-month period when a participant’s plan is created, reassessed or renewed.
While there has been significant discussion about what these changes mean, it is important to know that not all NDIS supports are affected, and a range of safeguards have been introduced to protect participants, particularly those with high support needs.
At Civic, we understand that changes to the NDIS can feel overwhelming. Our team is committed to helping participants and families understand what is changing and navigate any impacts on their supports.
Which NDIS Supports Are Changing?
The funding changes only apply to two support categories:
- Social, Economic and Community Participation Supports
- Improved Daily Living Skills Supports
For participants whose plans are reassessed, renewed or created after 1 October 2026, funding will be adjusted by:
- 50% reduction in Social, Economic and Community Participation Supports
- 10% reduction in Improved Daily Living Skills Supports
The Government has stated that these changes are intended to make NDIS funding more consistent with other support systems and help ensure the long-term sustainability of the scheme.
What Supports Are Not Affected?
Many of the supports participants rely on every day will remain unchanged.
Funding changes do not affect:
- Assistance with daily personal care
- Eating, drinking, dressing and toileting supports
- Community nursing
- Medication support
- Home and vehicle modifications
- Mobility equipment
- Transport supports
- Continence-related consumables
- Specialist Disability Accommodation (SDA)
In addition, several support types within the affected categories will remain protected, including:
- Employment supports
- Disability-related health supports
- High-intensity supports
- Intensive and complex behaviour supports
- Hearing services
- Customised and wearable technology
For many participants, this means some or all of their funding within these categories may be protected from reduction.
When Will the Changes Affect My Plan?
Nothing will change to your current plan immediately.
Participants can continue using their existing supports and funding until their plan is created for the first time, reassessed or renewed. The funding reductions will be introduced:
- From October 2026, changes will begin to apply when plans are reassessed or newly created.
- From February 2027, the NDIA will begin applying the changes through plan renewals as well.
Participants will be contacted before any reassessment or renewal takes place.
What Safeguards Are Available?
The Government has introduced several safeguards to help ensure participants continue to receive the supports they need.
Participants Can Request Plan Changes
Participants can still request a plan variation or unscheduled reassessment if there is a significant and ongoing change in their disability support needs, circumstances or functional capacity.
Examples could include changes in:
- Living arrangements
- Employment
- Education
- Informal support from family or carers
Additional Protections for Participants with High Support Needs
A new safeguard has been developed for people who receive funded 24-hour disability supports. The pathway allows eligible participants to apply for a plan variation if the funding changes would impact their ability to maintain safe 24-hour support arrangements.
To be eligible, participants generally need to:
- Receive funded 24-hour disability supports
- Have support needs arising directly from their disability
- Meet specific funding and support ratio requirements established by the NDIA
If approved, the NDIA may increase funding for daily living or home and living supports to ensure essential 24-hour disability supports can continue safely
What About SIL and Shared Support Arrangements?
Participants living in Supported Independent Living (SIL) or receiving other forms of 24-hour disability support may be concerned about the potential impact on their support arrangements.
The Government has recognised this risk and introduced the dedicated plan variation pathway specifically to protect participants whose 24-hour supports could be affected by funding changes. Eligible participants can apply within 90 days of the funding change being applied to their plan.
The NDIA will assess whether the funding reduction creates a gap that could affect the participant’s safety or ability to maintain necessary support ratios.
Looking Ahead: The New Planning Framework
These funding changes are being introduced before the transition to the NDIS’s new planning framework.
From 1 April 2027, participants will gradually begin moving to “new framework plans”. The Government has advised that the temporary funding reset will not apply once a participant transitions to a new framework plan.
Further information about the new planning approach is expected before implementation
How Civic Can Help
We know many participants and families will have questions about how these changes may affect their individual circumstances.
Civic’s team can support you to:
- Understand what the funding changes mean for your plan
- Review your supports and budget utilisation
- Prepare for upcoming plan renewals or reassessments
- Connect with information and advocacy resources
- Navigate discussions with the NDIA where appropriate
Every participant’s situation is different. If you have concerns about your current supports or future plan funding, we encourage you to speak with your Civic contact.
Together, we can make sure you have the information, support and confidence you need to navigate these changes.
Call: 1300 692 484
Email: enquiries@civic.org.au
