The government’s intention is to ensure the NDIS is sustainable and delivers equitable outcomes. However, for many Sydney NDIS participants and their families, the immediate reality is a landscape of uncertainty, particularly around budget allocation and the shift to shorter planning cycles. Understanding these reforms now is crucial for ensuring continuity of support and effective plan utilisation.
This comprehensive guide will break down the five most critical changes affecting your NDIS plan right now, offering clear explanations and actionable advice for Sydney residents navigating this new environment.
1. The End of Therapy from Your Core Budget: A Major Shift for Sydney Families
One of the most immediate and impactful changes for NDIS participants in Sydney is the new rule regarding therapy funding. As of July 2025, Disability-Related Health Supports – which include essential therapies such as occupational therapy, physiotherapy, speech pathology, and psychology – can no longer be claimed from your NDIS plan’s Core Supports Budget.
What This Means for You:
Historically, the flexibility of using Core Supports for therapies provided a vital lifeline for many participants, especially when Capacity Building funds were exhausted or during transitional periods. This allowed participants to flexibly manage their therapy appointments and ensure consistent access to crucial interventions. Now, therapies must be funded specifically under the Capacity Building (Improved Daily Living) budget category.
Why This is Critical for Sydney NDIS Providers and Participants:
This change demands a significant re-evaluation of how your plan is structured and how you communicate your needs. If your current plan allocates therapy funding predominantly under Core Supports, you will need to advocate strongly in your next planning meeting for these funds to be moved to Capacity Building. Sydney NDIS providers, particularly therapists, are already adjusting their invoicing practices and working with participants to understand this new directive.
Action You Need to Take TODAY:
- Review Your Current Plan: Check how your therapies are currently funded. If they’re in Core, prepare for a change.
- Prepare for Your Next Planning Meeting: Before your next plan review, clearly articulate to your NDIS planner or Local Area Coordinator (LAC) that you require specific funding for all necessary therapies under your Capacity Building budget, specifically under
Improved Daily Living. Provide detailed reports and recommendations from your current therapists to justify these allocations.
2. Welcome to the 3-Month NDIS Plan: Navigating Shorter Cycles
Another monumental shift is the move away from standard 12-month NDIS plans. From May 19, 2025, new NDIS plans will “usually be set at 3-months,” according to government communications.
What This Means for You:
This change represents a fundamental alteration to the planning cycle that participants, their families, and NDIS providers in Sydney have grown accustomed to. While the government states this is to help participants manage their budgets more effectively and allow for more regular check-ins, it raises immediate concerns about administrative burden, continuity of care, and the ability to establish long-term therapeutic relationships.
Why This is Critical for Sydney NDIS Providers and Participants:
- Increased Administrative Load: More frequent plan reviews could mean more paperwork, more meetings, and a heightened need for ongoing advocacy.
- Provider Relationships: For Sydney NDIS providers, shorter plans might impact their ability to offer consistent, long-term support packages, potentially leading to increased uncertainty for both parties.
- Goal Setting: Participants will need to adapt to setting shorter-term, achievable goals that align with a 3-month funding window, which may contrast with longer-term life goals.
Action You Need to Take TODAY:
- Clarify with the NDIA: Seek clarification from the NDIA on what a “3-month plan” truly entails. Does it mean a full plan review every three months, or more frequent budget disbursements with less frequent comprehensive reviews? Understanding the specifics is key.
- Document Everything: Maintain meticulous records of your supports, outcomes, and spending. This will be invaluable for more frequent reviews.
- Work with Your Support Coordinator: If you engage an NDIS support coordinator in Sydney, leverage their expertise to help navigate these more frequent cycles and ensure your plan is being effectively managed.
3. The Delayed “New Needs Assessments”: A Temporary Reprieve
Amidst the swift rollout of other reforms, one highly contentious proposed change has been temporarily shelved: the introduction of a new, single “needs assessment” tool to determine NDIS plan budgets. Following significant community feedback and advocacy, the implementation of this new assessment has been delayed until mid-2026.
What This Means for You:
This delay is a crucial piece of positive news. It means that for the immediate future (until mid-2026), your NDIS plan reviews will not be reliant on an untested, potentially reductive, standardised assessment tool. While the intent of such a tool was to ensure consistency and equity, many feared it would depersonalise the planning process and fail to capture the unique, complex needs of individuals.
Why This is Critical for Sydney NDIS Providers and Participants:
This delay offers a valuable window. It means your existing methods of demonstrating need – comprehensive reports from medical professionals, therapists, and current NDIS providers – remain paramount. Sydney NDIS providers should continue to focus on providing detailed, outcome-focused reports to support plan requests.
Action You Need to Take TODAY:
- Continue Comprehensive Documentation: Do not relax your efforts in gathering robust evidence for your NDIS plan. Continue to secure detailed reports from all your treating professionals and NDIS providers.
- Focus on Existing Processes: Engage in your planning meetings as you have previously, focusing on person-centred goal setting and evidence-based requests for support.
- Stay Informed: While delayed, the needs assessment is still on the horizon. Continue to follow official NDIS communications regarding its eventual design and implementation.
4. Intensified Focus on Fraud and Compliance: Protecting the Scheme
The NDIS is clamping down hard on fraud and non-compliance. Recent government announcements have highlighted successful crackdowns, with significant funds reportedly saved from “dodgy” providers, particularly in areas like Short Term Accommodation (STA).
What This Means for You:
While this directly targets fraudulent activity, it also creates an environment of heightened scrutiny across the entire scheme. For legitimate Sydney NDIS providers, this means increased administrative requirements and a greater emphasis on transparency. For participants, it reinforces the importance of using reputable, compliant providers.
Why This is Critical for Sydney NDIS Providers and Participants:
- Trust and Confidence: A well-regulated scheme builds trust. This crackdown aims to protect the integrity of the NDIS and ensure funds go to legitimate supports.
- Provider Vetting: Participants should be more vigilant than ever in vetting their NDIS providers in Sydney, ensuring they are registered (where applicable), have clear pricing, and maintain professional standards.
- Transparency: You may notice providers asking for more detailed records or communications to demonstrate compliance.
Action You Need to Take TODAY:
- Choose Registered Providers Where Possible: For complex supports, prioritising registered NDIS providers in Sydney offers an extra layer of assurance regarding quality and compliance.
- Understand Your Service Agreements: Always read and understand your service agreements with providers. Ensure they clearly outline services, costs, and cancellation policies.
- Report Concerns: If you encounter any suspicious activity or feel pressured by a provider, report it to the NDIS Commission.
5. Understanding the New Pricing Arrangements: Impacting Your Provider Choices
The NDIS Pricing Arrangements 2025-26, released on October 14, 2025, bring significant changes to how NDIS providers in Sydney can charge for their services. A key update is that therapists can now only claim 50% of their hourly rate for travel time, a substantial reduction from previous arrangements.
What This Means for You:
This change will directly impact the business models of many NDIS providers, particularly those offering mobile therapy services across Sydney’s expansive metropolitan area. Providers may need to adjust their service delivery models, potentially leading to:
- Reduced Mobile Services: Some providers may limit home visits or services to areas requiring extensive travel.
- Increased Telehealth: A shift towards telehealth appointments may become more prevalent to minimise travel costs.
- Strategic Service Areas: Providers might focus their services on specific geographical pockets within Sydney to optimise travel time.
Why This is Critical for Sydney NDIS Providers and Participants:
- Access to Supports: For participants in outer Sydney suburbs or those requiring in-home support, finding therapists willing and able to travel may become more challenging.
- Provider Viability: Many dedicated NDIS providers in Sydney are small businesses, and these changes can significantly impact their financial viability, potentially leading to a reduction in the number of available services.
Action You Need to Take TODAY:
- Discuss with Your Current Providers: Talk to your existing therapists and NDIS providers about how these new travel rules will affect their services to you.
- Explore Options: Be open to exploring different service delivery models, such as telehealth, if suitable for your needs.
- Advocate in Your Plan: Ensure your NDIS plan adequately funds any necessary travel for your supports, though the rules around what can be claimed have tightened for providers.
Navigating the NDIS Reforms in Sydney: A Path Forward
The NDIS landscape is undoubtedly changing, and the reforms of late 2025 mark a significant turning point. For NDIS participants in Sydney, staying informed, proactive, and engaged in your planning process is more crucial than ever.
While these changes present challenges, they also underscore the need for resilience and informed decision-making. By understanding the shift in therapy funding, preparing for shorter plan cycles, leveraging the delay in new assessments, supporting scheme integrity, and adapting to new pricing arrangements, you can better position yourself to navigate this evolving NDIS environment.
Work closely with your trusted NDIS providers in Sydney, your support coordinator, and advocates to ensure your voice is heard and your supports remain tailored to your needs and goals. The NDIS is back on track for reform, and with preparation, you can keep your plan on track too.
