June – July 2025 Newsletter NDIS Updates

NDIS Updates

For information purposes only

The National Disability Insurance Scheme (NDIS) continues to evolve with several crucial changes rolled out during June and July 2025, aiming to improve the plan management experience, funding sustainability, and support delivery. Here’s a clear, digestible summary of what’s new.

1. Introduction of Staggered Funding Periods

From May 2025, the NDIA began gradually applying staggered funding periods for new and reassessed plans. Traditionally, participants received the full plan allocation at the start of the 12-month plan, which could lead to budgeting challenges and overspending. Now, most participants will have three-month funding intervals, giving greater flexibility and regular access to funds while ensuring consistent use throughout the plan. Importantly, total funding amounts remain unchanged, only the timing of availability is adjusted. Participants experience these changes when they receive a new or reassessed plan after discussion with their Coordinator or Support Worker.

2. Funding Allocation Shifts for Therapeutic Supports

Effective July 2025, Core funding will no longer cover therapeutic services such as physiotherapy, occupational therapy, psychology, speech therapy, podiatry, and dietetics. These must now be funded entirely through Capacity Building budgets, which focus on long-term participant growth and skill development. Providers are encouraged to audit client plans carefully, adjust booking systems, and prepare explanatory materials to help participants understand these changes.

3. NDIA Pricing Adjustments

Alongside funding realignment, the NDIA has revised pricing for key therapeutic services:

• Physiotherapy rates reduced by $10/hour to $183.99
• Dietitians and podiatrists reduced by $5/hour to $188.99

Providers may need to recalibrate session lengths, combine group or assistant-led interventions, or introduce telehealth options to maintain cost-effectiveness. Regional providers, in particular, are advised to review service viability due to removal of travel loadings and reduced reimbursements.

4. Increased Flexibility in Plan Management

The new s.44(5) rule and management rules effective from March 2025 strengthen participant choice while ensuring safeguards for funding use. The rules guide NDIA decisions, promoting equity and consistency across different plan management types, including self-managed, nominee-managed, and registered plan managers. Enhanced supports and capability-building initiatives help participants manage funding appropriately and reduce risks of misallocation.

5. Variations and Reassessments

Participants may request plan variations or reassessments at any time, and NDIA must consider such requests if compliant with the NDIS Act. Updated rules clarify conditions for plan changes, supporting more responsive and individualised adjustments throughout the plan lifecycle.

6. Provider and Participant Preparation

Providers and participants are encouraged to:

• Conduct regular plan audits to align services with Capacity Building funds.
• Adjust pricing, service delivery, and route planning to optimise value and accessibility.
• Update service agreements, cancellation policies, and client communications to reflect new rules.
• Explore hybrid service models combining in-person and telehealth visits.
• Participate in webinars or consultations offered by NDIA to stay informed.

7. Ongoing Reforms and Roadmap

The changes align with the NDIS Disability Reform Roadmap 2024–2025, aiming for a fairer, sustainable, and better-regulated system. Updates are part of broader legislative amendments to the NDIS Act, supporting clarity, compliance, and participants’ rights.

Key Takeaway

June and July 2025 mark a major step toward more flexible funding, aligned pricing, and tailored support choices. Both participants and providers are encouraged to adapt proactively—review plans, reconfigure services, and utilise NDIA guidance—to ensure the NDIS continues delivering meaningful outcomes efficiently and sustainably.

Source(s):
1. https://www.ndis.gov.au/news/10721-changes-ndis-funding-periods
2. https://vanessanorman.com.au/post/ndis-funding-changes-2025-what-every-provider-needs-to-know
3. https://www.health.gov.au/topics/disability-and-carers/reforms-and-reviews/ndis-act-changes