NDIS Funding Changes from October 2026

BMe Supports | Updated 15 October 2026

Changes to NDIS funding can raise practical questions about therapy appointments, support worker hours and staying connected with the community. Knowing which parts of your plan are affected is the first step in planning ahead.

From 1 October 2026, reductions are being introduced for two groups of NDIS supports: social, economic and community participation and improved daily living skills.

The changes apply progressively when relevant plans are created, reassessed or renewed. They are not a flat reduction to every participant’s whole plan.

This guide explains the NDIS budget changes, includes worked examples and suggests questions to discuss with your support coordinator, plan manager or NDIA contact.

What is changing?

The Government has introduced a “support determination”, a legal instrument that reduces the amount available for specified supports.

Social, economic and community participation

The affected allocation is reduced by 50%. This means half of the affected allocation remains available.

Improved daily living skills

The affected allocation is reduced by 10%. This means 90% of the affected allocation remains available.

Some specified supports are excluded. The rules apply to old framework plans coming into effect from 1 October 2026.

These percentages relate to funding available for the affected supports. A 10% budget reduction does not mean every therapist’s hourly rate falls by 10%, and the 50% reduction does not apply to the entire NDIS plan.

Read the official NDIA announcement and the National Disability Insurance Scheme (Support) Determination 2026.

When will the changes affect my plan?

The rollout has different dates for different planning events.

New plans

Reductions begin applying to plans created from 1 October 2026.

Reassessed plans

Reductions begin applying to plans reassessed from 1 October 2026.

Renewed plans

Reductions begin applying to plans renewed from 1 February 2027.

The Government says remaining relevant plans will be renewed by 30 September 2027, with some later reassessment dates brought forward. Participants are to be contacted before reassessment or renewal.

The announcement does not mean everyone’s existing budget was reduced on 1 October. Continue using your current approved plan within its funding limits until it changes.

Check your own written notice and the commencement date of the replacement plan before changing bookings.

See the Department of Health, Disability and Ageing’s implementation guidance.

Worked examples of the budget reductions

These fictional examples illustrate the arithmetic only. They assume the amounts shown have been allocated before applying the reduction, with no other planning changes. They do not predict anyone’s next plan.

Example 1: Community participation funding

Mia has an affected allocation of $40,000 for community participation, with no excluded supports in that amount.

A 50% reduction leaves $20,000 available.

Mia and her support team would need to cost her proposed services against the new amount. It would be premature to assume that every shift must simply be halved without checking the actual schedule, rates and support needs.

Example 2: Improved daily living skills

Noah has an affected allocation of $12,000 for improved daily living skills.

A 10% reduction is $1,200, leaving $10,800.

If Noah’s proposed services cost $11,500, the team would need to address a $700 gap. Reviewing the full service schedule is more useful than guessing how many appointments to cancel.

Example 3: An allocation includes excluded supports

Amira has a $30,000 community participation allocation. Assume the NDIA confirms that $10,000 meets the exclusion requirements and $20,000 is subject to the reduction.

Confirmed excluded supports

• Before the reduction: $10,000.

• After the reduction: $10,000.

Affected supports

• Before the reduction: $20,000.

• After the 50% reduction: $10,000.

Total available funding

• Before the reduction: $30,000.

• After the reduction: $20,000.

This is why checking the excluded portion matters. A category containing protected supports should not automatically be treated as though the reduction applies to every dollar.

The actual result depends on the applicable rules and the NDIA’s allocation records.

Which supports are excluded?

Specified subgroups within the affected categories are excluded:

• Supports in employment.

• High intensity supports.

• Intensive and complex behaviour supports.

• Disability-related health supports.

• Customised and wearable technology.

• Hearing services.

Other categories are outside this particular budget reset. The NDIA gives examples including assistance with eating, dressing, toileting and household tasks, as well as home and vehicle modifications, personal mobility equipment and specialist disability accommodation.

This describes the scope of this change; it does not guarantee that every other allocation will remain identical after a reassessment.

The NDIA announcement links to the official list of excluded support items.

Does having complex needs protect all my funding?

An exclusion depends on the specified support and applicable plan rules, rather than a diagnosis or the general description “complex needs”.

The determination identifies particular support items. Its rules for recognising an excluded allocation differ between newly made plans and certain renewals of plans that started before October 2026.

For those older plans, 2026 payment records and funding management arrangements can also matter.

Ask for confirmation of which allocations qualify and how the excluded amount was calculated.

For clients receiving Positive Behaviour Support, a Functional Behaviour Assessment, a behaviour support plan and a support worker’s community shift are different services. Check the category and item used for each.

The named “intensive and complex behaviour supports” exclusion should not be treated as a blanket exemption for every service a person receives.

See sections 7–10 and Schedule 1 of the Support Determination.

What if I need support throughout the day and night?

A separate high support needs variation pathway may help eligible participants whose reductions leave insufficient funding for safe 24-hour disability supports.

The published criteria include both:

• At least $215,030 across Assistance with Daily Life, Home and Living, and Assistance with Social, Economic and Community Participation before the reset.

• NDIS-funded supports available throughout the day and night for needs arising directly from the impairments for which the person accesses the NDIS.

Meeting the dollar threshold alone is not enough. The NDIA must assess the other criteria and the resulting support gap.

The request generally needs to be made within 90 days of the reduction applying.

An approved variation may increase home and living or assistance with daily living funding; it does not automatically restore community participation hours. Any increase is capped at the funding reduction.

Read the Government’s high support needs safeguards guide and the NDIA’s high support needs information.

Can I challenge the reduction or request a plan change?

The NDIA states that the percentage reduction itself is not a reviewable decision.

That is separate from other planning decisions. Participants can still seek a plan change when there has been a significant and ongoing change to their support needs or circumstances. The budget reduction alone does not meet that test.

A reassessment considers a new package of supports. A variation changes part of an existing plan. The appropriate pathway depends on the situation.

For a reassessment request, current NDIA guidance requires a request from the participant, nominee or child representative, with the appropriate form and recent evidence. A provider can help prepare information but cannot simply lodge the request under general consent.

Decisions under the high support needs variation pathway have review rights.

If you suspect a calculation error or missed exclusion, ask the NDIA for a written explanation. An independent advocate may help you understand the available options.

Read the official guidance on plan reassessments and plan variations.

Six practical steps to prepare

1. Check the date that matters to you

Find your current plan, any NDIA notice and the relevant commencement or renewal date. Ask for an explanation if the dates do not match what you expected.

2. Map services to their funding

List each provider, the service delivered, its funding category and the amount committed. Include reports, travel and other agreed charges where applicable.

Ask your plan manager or provider to clarify unfamiliar items.

3. Request a full budget forecast

Compare available funding with services already delivered, unpaid invoices and future bookings. A bank-like balance alone may not show all upcoming commitments.

For your own planning, ask:

“If we keep the current schedule, what will it cost through to the end of the plan?”

4. Identify priorities with the participant

Discuss what matters most, which supports address safety and what may happen if services change. Participation, communication and relationships deserve consideration alongside immediate care tasks.

Where options are discussed, check that they suit the person. A group session or telehealth appointment will not be appropriate for everyone.

5. Document actual changes in need

If circumstances have changed, record what changed, when it happened and the practical effect.

Relevant evidence might include:

• Updated assessments.

• A current support schedule.

• Incident records.

• Information about changes in informal support.

For example, explain which tasks a family carer can no longer provide, rather than relying only on the statement “we need more funding”.

6. Agree on any service changes

Speak with providers before changing a roster or therapy schedule. Clarify the revised costs and any service agreement arrangements.

Ask for an updated written schedule so that the participant, family and providers share the same understanding.

Can I move money between categories?

The answer depends on your plan’s funding rules.

Some funding is flexible within the same support budget. Stated funding must be used for the support described, and funding cannot simply be transferred between different support budgets.

A spare balance does not automatically mean it can pay for a different service. Check the plan wording, available amount and applicable conditions first.

Read the NDIA’s guide to support budgets.

How BMe Supports can help

BMe Supports offers Support Coordination, Positive Behaviour Support, Functional Behaviour Assessments and support work.

Depending on the service you engage, we can help you understand your plan, identify service gaps, review proposed support arrangements and prepare clear information about your needs and goals.

For participants and families seeking NDIS support in Geelong or Bannockburn, or suitable telehealth services elsewhere in Australia, our team can discuss your circumstances and availability.

We cannot guarantee NDIA funding decisions or an exemption. We can help you make informed choices and prepare for conversations about your supports.

Explore BMe Support Coordination, learn about behaviour support, or make a referral.

Be Bold. Be Brave. Be Me.

Information checked 15 October 2026. NDIS guidance is being updated. Confirm how the current rules apply to your own plan before changing services.