Changes to what can be funded under the NDIS

On 3 October the Government announced changes to the NDIS 

Definition of NDIS supports

A new list has been released of what can and cannot be funded by the NDIS. Items and services that the NDIS will fund are those that are directly linked to a person’s disability. Items and services that the NDIS will not fund include services that are not evidence based (such as crystal therapy), and those that are not directly linked to a person’s disability (such as rent, groceries and bills). 

The new list came into effect on Thursday 3 October 2024. There will be a 12-month transition period, so if a participant uses their NDIS funding to buy an item or service that is not approved, they won’t be automatically penalised. 

If a participant wants to purchase an item that isn’t on the approved list, they can make a request to the NDIS for consideration where they believe it’s better value for money. Minister Shorten gave the example of someone who needs specially designed shoes because of their disability, where the participant believes off the shelf shoes that are cheaper are just as suitable. 

Information about what the NDIS will and will not fund, including the detailed lists, can be found on the NDIS website. 

Changes to funding amounts and periods

New plans will now show a total budget amount rather than line-by-line support items. This will give participants more flexibility over how they can spend their funds on approved items and services.  

New plans will also show what time period the funding is for, which will initially be 12 months. Participants won’t be able to ask the NDIS for more funding if they use up all their funds early.

The NDIA can also change how a participant’s plan is managed if they believe funds are being misused. 

Why are the changes happening now?

On 22 August 2024, the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024 was passed by the Parliament. The new NDIS laws come into effect on 3 October 2024. A summary of the changes in the legislation can be found on the NDIS website. 

The Amendment Bill was needed to allow the Government to make the changes that come into effect this week. 

The changes are part of a number of NDIS reforms designed to make the scheme sustainable and follow the NDIS Review that started in 2022. The NDIS Review Final Report  included 26 recommendations and 139 actions. 

Where to get more information

  • Accessible and Easy Read versions of the NDIS supports lists are now available on the NDIS website.