Back in October 2022, the Minister for the National Disability Insurance Scheme, Bill Shorten MP announced an independent review of the National Disability Insurance Scheme (NDIS). The purpose of the review was to look at the design, operations and sustainability of the NDIS. A final report of the review was released in December 2023 with recommendations to improve the NDIS.

From the review, some of the recommended changes are set to go ahead, after new legislation was passed in Federal Parliament in August 2024.

Why is the NDIS changing?

The way that the NDIS operates is guided by laws (or legislation) that the government put in place. The government is in the process of changing some of these laws so that some of the recommendations that came from the independent review can be implemented.

What are the proposed changes?

Some of the proposed key changes to the NDIS include:

Budgets based on needs - a new planning framework will be introduced to build NDIS Plans with a reasonable and necessary budget, instead of identifying supports line-by-line. The budgets will be based on a needs assessment rather than on diagnosis. It is not clear yet what the needs assessment process will be.

Flexible funding – will be available where a participant’s needs assessment indicates they require at least some NDIS supports that are not stated supports. This will allow for greater flexibility, choice and control, over how budget is spent. It will include:

• Line-by-line plans that specify particular supports, support intensity will no longer exist
• Flexible funding may be used for any NDIS supports that meet support needs that are most appropriately funded by the NDIS
• Fluexible funding will be included in a plan by default
• In certain circumstances (such as where a participant historically overspends budget), the NDIS may restrict the spending of some or all of the flexible funding.

New definition of NDIS supports – the new definition of NDIS supports is intended to provide clarity around supports that can and can’t be funded by the NDIS. Read more.

12-month funding periods – each funding period will be no more than 12 months to reduce budget overspending. Funding that is not spent within one plan period, will be rolled over into the next (if it is under the same plan).

Timeframes on claiming – will work in a similar way to Medicare. That is, NDIS claims must be made within two years of the support being provided. This new rule is effective immediately, however there will be a 12 month ‘grace period’ so that participants can adjust to this change.

Limited top-ups – while it’s not clear yet how this will work, the NDIS will implement tighter controls to limit top-ups for participants who have over-spent on their budget.

Early intervention pathways – there will be a new early intervention pathway for children, this is currently in development.

Needs based entry assessment – there are no changes to eligibility for the NDIS however, automatic access will no longer be guaranteed with certain medical diagnoses. Those entering the scheme will take a needs-based assessment to prove they have significant functional impairment that impacts their daily life.

New foundational supports – Federal and state/territory governments are working together on developing a new foundational supports model for non-NDIS home and community supports.

Foundational supports are for both NDIS participants and people with disability aged under age 65 who are not eligible for the NDIS.

It’s expected that new foundational supports will be rolled out in phases, starting in mid-2025.

When will the change happen?

The changes will roll out in stages. There isn’t a lot of information about when each change will be made yet.

What do I need to do?

You don’t need to do anything. As an NDIS participant, you can continue to spend your NDIS funding in accordance with your current plan, until the changes are rolled out.