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NDIS Funding Changes From 1 October 2026: What Participants Need to Know
NDIS Funding Changes From 1 October 2026: What Participants Need to Know
Changes to some NDIS funding begin from 1 October 2026, but they won't affect every participant or every support.
Two support areas are being reset:
- Social, Economic and Community Participation budget allocations will be reduced by 50%.
- Improved Daily Living Skills budget allocations will be reduced by 10%.
Importantly, this doesn't mean everyone's current funding suddenly drops on 1 October. The changes will be introduced gradually as plans are created, reassessed or renewed between 1 October 2026 and 30 September 2027.
There's also another important change coming on 1 December 2026: NDIS claims will generally need to be made within 90 days of the support being delivered. Here's what you need to know:
What's changing from 1 October?
The Australian Government is resetting funding allocations for two areas of NDIS support.
Social, Economic and Community Participation
Budget allocations for affected supports will be reduced by 50%. This area can include supports that help participants engage in their community, social activities and other forms of participation.
Improved Daily Living Skills
Budget allocations for affected supports will be reduced by 10%. This area includes capacity-building supports designed to help participants develop skills and independence.
The Government says the Social, Economic and Community Participation change is intended to bring average spending back towards 2023 levels.
Sources: [Australian Government: Funding changes for NDIS supports] and [NDIS: Changes to support budgets from 1 October]
Does that mean my funding drops on 1 October?
No.
Think of 1 October as the starting line, not a giant reset button that gets pushed on every NDIS plan in Australia at once. The changes will be introduced progressively over 12 months.
From 1 October 2026, the reset can apply when:
- a new participant receives their first plan
- an existing participant has their plan reassessed.
From 1 February 2027, the changes will also begin applying through plan renewals for participants who haven't already had the reset applied. The process continues until 30 September 2027.
The NDIA will contact participants before a reassessment or renewal, and you can continue using your current plan and supports until your plan changes.
Does a 50% funding reduction mean I'll lose half of the support I currently use?
Not necessarily. This is an important distinction. The change reduces the budget allocation, but some participants currently don't use their entire allocation.
The Government gives an example of someone with $50,000 allocated to Social, Economic and Community Participation who currently spends $30,000. After a 50% reset, their allocation would become $25,000. So although their budget allocation fell by $25,000, their actual current spending would need to fall by $5,000.
Every participant will be different.
Your actual impact will depend on your existing budget; how much you currently use and which supports you're using.
What NDIS supports aren't being reduced?
The reset only applies to the two affected support areas. The Government says other parts of participant plans won't be affected by this funding reset. Examples of protected supports include:
- help at home with eating and drinking
- dressing
- toileting
- laundry and cleaning
- community nursing care
- help with medication
- home and vehicle modifications
- personal mobility equipment and transport
- continence and menstruation consumables
- Specialist Disability Accommodation.
There are also protected groups of supports within the two affected categories.
These include:
- employment supports
- disability-related health supports
- high intensity supports
- intensive and complex behaviour supports
- customised and wearable technology
- hearing services.
So it's important not to look at the headline percentage and assume every support within those categories is being cut.
What if I need 24-hour disability support?
There are additional safeguards for some participants with high support needs. Eligible participants who rely on 24-hour disability supports may be able to request a plan variation if the funding reset means their remaining funding is no longer enough to safely maintain those supports.
There are specific eligibility requirements for this pathway, so participants affected should speak with the NDIA about their individual circumstances.
There's another change coming on 1 December: the 90-day claim rule
From 1 December 2026, participants or their plan managers will generally need to make claims within 90 days of the support being delivered. Previously, the claiming window could extend much longer.
Think of it like an invoice getting an expiry clock.
Once a support has been delivered, you don't want the invoice sitting in someone's inbox or glovebox for months on end. If Kismet manages your plan, we handle the claiming process for eligible invoices you send us.
But we still need to receive the invoice in time to process the claim.
So if you've got older provider invoices sitting around waiting to be sent through, now is a good time to get them sorted.
What should I do now?
There's no need to panic or suddenly change how you use your current plan.
A good starting point is to:
- Keep using your current plan as normal until the NDIA tells you it's changing.
- Know whether you have funding in the two affected areas.
- Understand how much of that funding you're actually using, not just the total allocation.
- Look out for communication from the NDIA about an upcoming reassessment or renewal.
- Send outstanding invoices to your plan manager promptly, particularly with the 90-day claim rule approaching.
If your plan is affected, the most useful question isn't simply:
“How much has my budget gone down?”
It's:
“What supports am I actually using, which ones are affected, and what funding will I have available to continue them?”
That's where understanding your individual plan really matters.
Need help understanding your NDIS funding?
If your plan is managed by Kismet, we can help you understand your budgets, keep track of your spending and manage eligible provider invoices and claims.
And if you have outstanding invoices you haven't sent us yet, now is a good time to get them through.
Learn more about Kismet Plan Management.