Is Your NDIS Funding Changing from October 2026?

Key information

• From 1 October 2026, plan reassessments will apply a 50% reduction to Assistance with Social, Economic and Community Participation (ASCP) and a 10% reduction to Improved Daily Living (IDL) skills budgets
• This is a reduction on the reasonable and necessary amount the NDIA determines in your new plan, not a straight cut to your previous budget
• From 1 October 2026, the changes will begin to apply when plans are created or reassessed. From 1 February 2027, they will also begin to apply to plan renewals. The changes will be introduced gradually through to 30 September 2027.

Changes to NDIS funding can feel confusing, especially when there are new dates, percentages and rules to understand. The important thing to remember is that these changes won’t affect everyone in the same way or at the same time.

As part of the Securing the NDIS for Future Generations Act, some significant funding changes are happening from 1 October:

1. Plan reassessments will apply a 50% reduction to Assistance with Social, Economic and Community Participation (ASCP) budgets.
2. Plan reassessments will apply a 10% reduction to Improved Daily Living (IDL) skills budgets.

So, what could these changes mean for you? We've broken down what’s changing, when it could affect your plan, and what you need to know.

Will my funding change on 1 October?

Not necessarily. If you already have an NDIS plan, you can continue using your current funding and supports as usual. From 1 October 2026, the changes will begin to apply when some plans are created or reassessed, with the changes being introduced gradually.

If you’re not due for a reassessment just yet, there’s nothing you need to do differently right now.

It’s also worth remembering that budgets can go up or down at reassessment for a variety of reasons that have nothing to do with the reduction. When you have your plan reassessment on or after October 1, 50% or 10% off applies to what the NDIA determines as your reasonable and necessary funding for the new plan. Your old total does not change or carry over automatically.

So, what could this look like?

Example 1: 50% from Assistance with Social, Economic and Community Participation

At reassessment, the NDIA sets a new reasonable and necessary budget for your ASCP funding of $80,000. The 50% reduction is then applied, leaving $40,000 available in your new plan.

Example 2: 10% from Improved Daily Living supports

At reassessment, the NDIA sets you a reasonable and necessary IDL budget of $20,000. Under the 10% reduction, this would result in an IDL budget of $18,000 in your new plan (with funding periods applying).

For now, you can continue using your existing plan and supports as usual until these changes apply to you.

What happens when my current plan reaches its end date?

From 1 February 2027, the funding changes will also begin to apply when plans are renewed.

If you receive funding for the affected supports and haven’t had a new or reassessed plan since 1 October 2026, your plan will be renewed by 30 September 2027. The NDIA will contact you 60 days before your plan renewal, and you won’t need to provide any extra information.

Until your plan is reassessed or renewed, you can continue using your current plan and supports as usual.

Are there any supports that won’t be affected by the reductions?

Yes. The changes only apply to Assistance with Social, Economic and Community Participation and Improved Daily Living skills funding. This means they don’t impact:

• Supports in the home – help for eating, drinking, dressing, toileting, laundry, cleaning, nursing care, medication support
• Home and vehicle modifications
• Personal mobility equipment and transport
• Consumables for incontinence and menstruation
• Specialist Disability Accommodation (SDA)

There are also some subgroups of supports within the affected ASCP and IDL categories that are excluded from the reductions. These include:

• Employment supports
• Disability-related health supports
• High intensity supports
• Intensive and complex behaviour supports
• Customised and wearable technology
• Hearing services

The NDIA will check whether these exclusions apply based on the supports used in your plan. You don’t need to provide any additional information for these exclusions to be considered.

As an additional safeguard, there will also be a new plan variation pathway for some participants with high support needs who need 24-hour disability support.

Who can apply for a plan variation under the new pathway?

According to the Department of Health, Disability and Ageing, the new pathway will be available to high support needs participants who:

• have a total budget for Assistance with Daily Life, Home and Living and Assistance with Social, Economic and Community Participation of $215,030 or more before the reduction is applied; and
• receive 24-hour funded NDIS supports for support needs arising directly from the impairments they access the NDIS for

The $215,030 benchmark is equivalent to the cost of 24-hour support provided at a shared support ratio of 1:3.

Note: Participants living in residential aged care are unlikely to be eligible for this pathway.

Related: NDIS Plan Cut After Reassessment? Your Review Rights Explained

5 practical ways to make the most of your funding

If these changes could affect you, it doesn’t mean you need to start cutting back on your supports now. Your plan is there to help you work towards your goals, so the focus should be on getting the most from your funding - not simply spending less. Here are some practical things you can consider to help you stay on top of your funding.

1. Individual vs group-based activities (sharing supports)

You might be able to share some of your supports with other participants who have the same goals, which would then lower costs for support delivery. This won’t be right for everyone or every support, but where it suits your needs and goals, it could help your funding go further.

2. Talking to your providers about pricing

While the NDIA sets maximum prices in the NDIS Pricing Schedule, some providers may be willing to work with you to adjust rates or support arrangements for a more cost-effective way to get the support you need. Not every provider can offer this, but it’s worth asking!

Also, take the opportunity to look into non-face-to-face charges or travel costs; make sure you understand what each item is, and see if there are any opportunities to combine things or opt for a more affordable service option.

Related: What to Do When Your NDIS Provider Increases Their Rates

3. Checking for lower-rate support times

Hourly rates for many supports change depending on when they are delivered. For example, supports delivered on a weekday will be lower cost than those delivered during weekends, after hours, or on public holidays.

4. Understanding and avoiding cancellation fees

Providers can’t charge for every cancelled support – the fee can only be claimed in certain circumstances, and this must be included in your service agreement. Make sure you know if a provider can charge cancellation fees, and how much notice you need to give to avoid them.

5. Prioritising the supports that matter most to you

Consider which supports are most important to you - the ones that help you stay connected and do the things that matter to you. Understanding what matters most to you can help you make informed decisions about how you use your funding.

You don’t have to navigate these changes alone

Changes to NDIS funding can be a lot to take in, and it’s okay if you’re not sure exactly what they mean for you yet.

Your plan manager can help you understand your current budgets, spending and funding periods, so you have a clearer picture of where things stand.

While we can’t influence the funding decisions the NDIA makes, we can help you understand your plan, stay on top of your funding and feel more confident about what comes next.

What you can do about funding changes

If your support needs have changed and you have an upcoming reassessment, it can be helpful to make sure you have up to date evidence that shows your current support needs and how your disability impacts your everyday life. You can discuss your support options with your local area coordinator or support coordinator, if you have one, and talk with your plan manager about your budgets and funding periods. You can also ask a trusted support person, like a friend, family member or independent disability advocate, to help you go through your plan and communicate with the NDIS.

Related: 8 Tips to Make Your NDIS Evidence More Effective

NDSP: Keeping you in the loop with all things NDIS

There’s a lot happening across the NDIS, and we know it isn’t always easy to keep up. At NDSP we’re here to help make plan management simpler and give you a clearer picture of your funding.

You can check your budgets and spending anytime through the Nappa online portal, or get in touch with our team if you have questions about your plan management. Our friendly team of NDIS experts are also available 8.30AM to 5.30PM (ACT) on 1800 63 63 77 to answer your questions.

Looking to change plan managers, or new to the NDIS? Why not get in touch with NDSP today to learn more about our approach to plan management.