Updated: 1 October 2026
Changes to some NDIS support budgets have now begun.
From 1 October 2026, funding for two areas of NDIS support will progressively be reduced as participants receive new plans or have their existing plans reassessed. Plan renewals will also begin to be affected from 1 February 2027.
The two affected areas are:
Social, Economic and Community Participation, with budget allocations being reduced by 50%
Improved Daily Living Skills, with budget allocations being reduced by 10%
However, this does not mean every participant will suddenly lose 50% or 10% of their overall NDIS funding.
The changes only apply to particular support budgets, they will be introduced progressively, and some supports are specifically protected from the reductions. The effect will also vary from participant to participant depending on their individual plan, support needs and how much of their existing funding they currently use.
If you’re wondering what the changes mean for your plan, here’s what we know so far.
The Australian Government has introduced a funding reset affecting two NDIS support areas.
For affected plans:
Social, Economic and Community Participation funding will be reduced by 50%.
Improved Daily Living Skills funding will be reduced by 10%.
The changes start from 1 October 2026 for new plans and reassessed plans. From 1 February 2027, the changes will also begin applying when eligible existing plans are renewed.
Your current plan does not automatically change simply because it is 1 October. Participants can continue using their current plan and supports until their plan is created, reassessed or renewed and the funding change is applied.
Some important and critical supports are not affected.
The funding reset applies to two areas.
Funding allocations for Social, Economic and Community Participation are being reduced by 50%.
This area of funding can include supports that help participants take part in social, recreational and community activities and build greater participation and independence.
The Australian Government says the change is intended to bring average spending in this area closer to 2023 levels.
Funding allocations for Improved Daily Living Skills are being reduced by 10%.
Improved Daily Living is a Capacity Building support category that can include assessments, training and therapies intended to build skills and independence. The NDIS gives examples including occupational therapy and speech therapy.
Again, these percentages relate to the affected budget allocations. They do not mean that every participant’s total NDIS plan will decrease by 50% or 10%.
For many existing participants, no.
The funding reductions are being introduced progressively between 1 October 2026 and 30 September 2027.
From 1 October 2026, the changes can apply when:
a new participant receives their first plan
an existing participant has a scheduled reassessment
the NDIA initiates a reassessment
an eligible participant has an unscheduled reassessment.
From 1 February 2027, participants receiving funding in the affected support areas who have not already had a new or reassessed plan will progressively have the changes applied through plan renewal.
The government says participants will be contacted before their plan is reassessed or renewed.
If your existing plan has not yet been reassessed or renewed, you can continue using your current plan and supports in accordance with your plan.
You don’t need to assume that your funding changed overnight on 1 October.
Not necessarily.
This is an important distinction.
The government describes the change as a reduction to the budget allocation for Social, Economic and Community Participation.
How much that changes the supports you actually use may depend on how much of that budget you have historically used.
For example, the Department of Health, Disability and Ageing gives an example of a participant with $50,000 per year allocated for Social, Economic and Community Participation who had actually been spending approximately $30,000.
After the 50% budget reset, the allocation becomes $25,000. In that example, the difference between the participant’s previous spending and their new available budget would be $5,000 rather than $25,000.
That does not mean the reduction will be small for everyone.
The impact will depend on your individual plan, the supports you use and your disability-related support needs.
The NDIA has confirmed that several types of support will not be affected by these changes.
These include supports relating to:
employment
disability-related health
high intensity supports
intensive and complex behaviour supports
customised and wearable technology
hearing services.
Essential day-to-day supports are also protected, including supports for:
eating and drinking
dressing
toileting
laundry and cleaning
community nursing care
medication
home modifications
vehicle modifications
personal mobility equipment
Specialist Disability Accommodation.
The NDIA says other areas of participants’ plans are not affected by this particular funding reset.
This is an important question for participants who currently receive Behaviour Support.
The funding reset specifically targets Social, Economic and Community Participation and Improved Daily Living Skills.
Behaviour Support is generally associated with the Improved Relationships Capacity Building category, which the NDIS describes as including behaviour support plans, behaviour supports and social skills development. Improved Relationships is a separate support category from Improved Daily Living.
The NDIA has also specifically stated that intensive and complex behaviour supports will not be affected by these budget reductions.
That does not mean participants should assume every element of an individual plan is automatically unchanged. Your funding depends on the categories and supports included in your particular NDIS plan.
If you’re concerned about your Behaviour Support funding, check where the support appears within your plan and discuss any uncertainty with the NDIA, your support coordinator or your provider.
This is an area participants should pay particular attention to.
Improved Daily Living funding can be used for therapies and assessments designed to build independence and functional capacity. The NDIS gives examples including occupational therapy and speech therapy.
Because Improved Daily Living Skills is one of the affected categories, participants who receive therapy funding through this budget may see changes when the funding reset is applied to their plan.
The reduction to the affected Improved Daily Living Skills allocation is 10%.
Exactly what this means for an individual participant will depend on their plan.
If you use several therapies or allied health supports from the same Capacity Building budget, it may be useful to review how the available funding is currently being used before your next reassessment or renewal.
There is an important distinction here.
The NDIA says the funding reset itself is not a reviewable decision.
However, participants can still request changes to their plan where their circumstances or support needs have significantly and continuously changed.
The NDIA says a plan reassessment may be considered where there has been a significant and ongoing change in areas including:
your ability to complete daily activities
your living arrangements
your education or employment circumstances
the informal supports available to you.
A participant can therefore still request a plan reassessment or, where applicable, a plan variation based on their circumstances.
Additional safeguards have been introduced for some participants with high support needs.
The NDIA has created a new plan variation pathway for eligible participants who receive 24-hour funded disability supports and may no longer have enough funding to safely maintain those arrangements after the budget reset.
The NDIA currently states that this pathway can apply where a participant:
receives 24-hour funded NDIS supports for disability-related support needs; and
has a combined budget of $215,030 or more across Assistance with Daily Life, Home and Living, and Assistance with Social, Economic and Community Participation.
The purpose of this pathway is to help ensure participants with high support needs continue to have sufficient funding for their 24-hour disability support arrangements.
No.
The change is being rolled out over 12 months.
The timeline currently looks like this:
From 1 October 2026:
The funding reset applies when affected participants receive a new plan or have a plan reassessed.
From 1 February 2027:
The reset also begins applying through plan renewals for participants who haven’t already had the change applied.
By 30 September 2027:
The government intends for the funding reset to have been applied to affected old-framework participant plans.
Participants whose scheduled reassessment is on or after 1 October 2027 may have their renewal brought forward to occur by 30 September 2027. The Department says these participants will be contacted 60 days before their plan renewal.
You do not need to stop using your supports simply because these changes commenced on 1 October.
Your current plan remains in place until a new, reassessed or renewed plan takes effect.
However, this is a good time to understand your existing funding and how you’re currently using it.
Before your next reassessment or renewal, consider checking:
which support categories are included in your plan
how much funding remains in each category
which therapies and supports are being paid from Improved Daily Living
how much Social, Economic and Community Participation funding you’re currently using
whether your support needs or personal circumstances have significantly changed
whether you rely on 24-hour or high-intensity disability supports.
You may also want to speak with your support providers about how your current funding is being used and whether your supports may need to be planned differently if your available budget changes.
The most important thing to remember is that this is not a blanket reduction to every NDIS plan.
The changes target two particular areas of funding, while a range of critical and disability-related supports remain protected.
At the same time, a 50% reduction to a Social, Economic and Community Participation allocation or a 10% reduction to Improved Daily Living can still be significant for participants who rely heavily on those budgets.
Understanding which categories your supports come from will therefore become increasingly important as plans are reassessed and renewed over the coming year.
If you receive Behaviour Support, therapy or other Capacity Building supports, knowing where those supports sit within your plan can help you understand whether this funding change is likely to affect you.
NDIS changes can be difficult to interpret, particularly when different supports sit within different funding categories.
At Support Agency, we’re here to help participants, families and carers better understand their supports and work towards meaningful outcomes.
If you have Behaviour Support, Music Therapy, Psychology or other allied health supports in your plan and you’re unsure what upcoming NDIS changes could mean for the way you access those supports, get in touch with our team.
We can help you understand the supports we provide and how they may fit within your NDIS plan.
Funding for two areas is being reduced progressively from 1 October 2026. Social, Economic and Community Participation budget allocations are being reduced by 50%, while Improved Daily Living Skills allocations are being reduced by 10%. The changes are applied as affected plans are created, reassessed or renewed.
Not necessarily. Existing participants can continue using their current plan until it is reassessed or renewed. The changes are being introduced progressively between 1 October 2026 and 30 September 2027.
The 50% reduction applies to budget allocations for Social, Economic and Community Participation supports. It does not mean every participant’s total NDIS plan will be reduced by 50%.
Budget allocations for Improved Daily Living Skills supports are being reduced by 10% when the funding reset is applied to an affected plan.
The funding reset specifically applies to Social, Economic and Community Participation and Improved Daily Living Skills. Behaviour Support is generally associated with the separate Improved Relationships support category, and the NDIA has specifically confirmed that intensive and complex behaviour supports are not affected by these reductions. Individual participants should check how their particular supports are funded in their plan.
Some therapy and assessment supports may be funded through Improved Daily Living Skills, which is subject to a 10% budget allocation reduction. The effect on an individual participant will depend on their plan and how their supports are funded.
Yes. The government says participants can continue using their current plan and supports until their plan is changed through a new plan, reassessment or renewal.
Yes. Participants may still request a plan reassessment where there has been a significant and ongoing change in circumstances or support needs. The funding reset itself, however, is not a reviewable decision.
This article was prepared using information published by the National Disability Insurance Agency (NDIA) and the Australian Government Department of Health, Disability and Ageing, current as at 1 October 2026.
NDIS rules and implementation guidance can change. Participants should check the latest official NDIS information or speak directly with the NDIA where advice about their individual plan is required.