The government's own Reform Advisory Committee has raised concerns about service continuity, participant wellbeing, and provider sustainability as officials prepare to begin the new support determination regime on Thursday.
The government’s own NDIS reform advisors are warning that looming funding reductions could threaten continuity of care for participants requiring 24-hour and other complex supports, as the first stage of a major funding reset begins this week.
The NDIS Reform Advisory Committee raised concerns about the government’s proposed high-support-needs plan variation pathway at its 4 September meeting, particularly for participants living in supported accommodation or receiving round-the-clock support.
“Members expressed concern about the potential impacts of funding reductions on participants requiring continuous and complex supports, particularly those living in supported accommodation or receiving 24-hour support arrangements,” the meeting summary says.
“Discussion highlighted concerns about service continuity, risks to participant wellbeing, provider sustainability and the potential impacts on carers and families.”
Members also raised concerns about safeguarding, social inclusion and “the cumulative impacts of reduced community participation supports”.
Officials told the committee further work was underway to refine the implementation arrangements and mitigate risks for participants with high support needs.
Cuts start from 1 October
The government will begin resetting funding for two categories of NDIS supports from this Thursday, 1 October.
Funding available for social, economic and community participation supports will be reduced by 50%, while improved daily living skills supports will be reduced by 10%.
The changes will be progressively applied over 12 months as participants’ plans are created, reassessed or renewed. The Department of Health, Disability and Ageing says other parts of participants’ plans, including in-home supports and Specialist Disability Accommodation, will not be affected, while a number of support types within the affected categories are also exempt.
The DoHDA says the changes are intended to bring funding for the two categories closer to comparable support programs and help ensure the NDIS remains sustainable.
At the RAC meeting on 4 September, officials outlined the support determination framework and its staged implementation from October 2026 to September 2027.
Support determinations will apply only to participants under the current planning framework and will not apply once participants move to new framework planning.
Safety valve for 24-hour support
The government has created a special plan variation pathway intended to prevent the funding reductions leaving high-support-needs participants without sufficient funding to safely maintain their 24-hour disability supports.
To qualify as a high-support-needs participant under the pathway, a participant must have at least $215,030 in their combined pre-reset budget for assistance with daily life, home and living, and assistance with social, economic, and community participation, and receive 24-hour funded NDIS supports.
The DoHDA says the $215,030 threshold is equivalent to the cost of 24-hour support at a shared support ratio of one worker to three participants.
Related
Participants will have 90 days after the funding reset is applied to their plan to request a variation. A variation can be granted where the remaining funding is insufficient to maintain safe 24-hour disability supports and the support ratio required to meet the participant’s disability support needs.
If approved, the NDIA can increase funding for specified supports to cover the gap, although “the increase will not be more than the amount reduced by the funding changes”.
The NDIA will have 21 days to decide whether an applicant meets the definition of a high-support-needs participant, unless it advises that more time is required. If eligible, the agency has a further 21 days to decide whether to vary the plan or advise that it requires additional time.
The pathway cannot be initiated by the NDIA: the participant or their nominee must request the variation.
Participants who do not meet the high-support-needs threshold can still seek a variation or unscheduled reassessment when there has been a significant and ongoing change in their circumstances, functional capacity, or support needs. The DoHDA says a funding reduction caused by the reset alone will not constitute such a change, however.
‘Widespread distrust and confusion’
The RAC’s concerns extend beyond participants receiving 24-hour care.
Members report continuing uncertainty across the disability community about support determinations, future access arrangements, foundational supports, workforce availability, and service continuity.
The meeting summary says members highlighted “widespread distrust and confusion regarding communications from the NDIS” and called for clearer information and greater transparency as the reforms progressed.
Particular concerns have been raised about potential unintended consequences for regional and remote communities, First Nations participants, culturally diverse communities, people with complex support needs, and family carers.
Disability minister Senator Jenny McAllister has told the committee its priorities for the next stage of reform would include implementation of new framework planning, access and eligibility reform, and monitoring the rollout of Thriving Kids and its interface with the NDIS and foundational supports.
The government is also exploring commissioning approaches for Supported Independent Living, along with workforce sustainability, service quality and participant safeguarding.
The RAC will meet again on 9 October.
Read the full 4 September meeting summary here.