From 1 October 2026, the NDIS will start reducing budgets for two types of supports:
- Social, economic and community participation: Improves inclusion, increases confidence, builds skills and social networks and reduces isolation by engaging in community activities and social life. Helps people participate in the economy with supports in employment.
- Improved daily living skills: Increases independence, social networks, helps people maintain, develop and grow their skillsets.
The Government announced its plan to reduce funding for the two support types when it released the ‘Securing the NDIS for Future Generations’ Bill in May 2026.
Most notably, budgets for social, economic and community participation will be cut by 50%, while improved daily living skills will be reduced by 10%.
Naturally, you might be feeling worried or unsure about what happens next.
While the news has rattled the sector, the changes won’t impact everyone the same way.
Here's a clear guide to what's been announced, when changes are taking place and who is affected.
When will it affect me?
Your plan won’t change on 1 October.
The changes only apply when a person's plan is created or reassessed from 1 October or renewed from 1 February 2027. Until then, your current plan stays the same and you can keep using your supports as usual.
What isn't changing?
While the effects of this change will vary for each participant, the NDIS has said that specific supports under ‘community participation’ and ‘improved daily living skills’ won’t be affected. Those include:
- Supports in employment
- Disability-related health supports
- High intensity supports, and intensive and complex behaviour supports.
In addition, the other supports that won’t be impacted by this change are: personal care, daily living, nurse care, medication, home and vehicle modifications, personal mobility equipment and specialist disability accommodation.
Options for plan reviews and variations
As outlined on the Government’s website, participants with higher support needs, such as 24/7 support, will be able to request a plan variation if reduced funding impacts their support.
Meanwhile, all participants can request an unscheduled plan reassessment or variation if there are significant and ongoing changes to their support needs, functional capacity, or circumstances.
Who is affected?
- Participants: Your community participation budget may be reduced when your plan comes up for renewal between 1 February 2027 and 30 September 2027.
- Families and carers: It's worth knowing the end date of your loved one's NDIS plan so you're not caught off guard and can prepare in advance.
- Support coordinators: Support coordinators may need to help participants manage the consequences of these funding cuts, such as retaining as many essential supports as possible with reduced funding available.
Note: The NDIA has said it will contact participants 60 days before their plan renewal about these reductions.
Where can I find out more?
- NDIS website: Changes to support budgets from 1 October
- Department of Health, Ageing and Disability website: Funding changes for NDIS supports
We'll update this article as more information is released.
To stay up to date and find out more about the NDIS changes, visit Hireup’s NDIS Hub for more information.
