Understanding the Upcoming NDIS Changes

NDIS Updates, Family Resources

Understanding the Upcoming NDIS Changes

These NDIS Reform changes are being introduced over the coming months and years and are designed to make the NDIS more sustainable into the future.

Published date

8 March 2026

Reading time

8 minutes

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You may be aware that significant reforms to the National Disability Insurance Scheme (NDIS) were recently passed by the Australian Parliament. These changes are being introduced over the coming months and years and are designed to make the NDIS more sustainable into the future.

The reforms are extensive and will introduce major change to the way eligibility is determined, what is funded and by how much. Below provides you with a brief summary of what you need to know.

What changes are expected?
The reforms include changes to areas such as:

How people access the NDIS and demonstrate eligibility.
How participant plans are developed and reviewed.
Increased oversight and compliance requirements across the NDIS.
Changes to some categories of participant funding, which may reduce when plans are reviewed or renewed.
Transport funding rules have been clarified — more flexibility for participants using their own vehicles.
Future changes to support coordination, home and living arrangements, and provider registration requirements are also being considered as part of the broader reform agenda.

Below are some changes that we have summarised, with their potential impact to you and your support:

1. What is SCCP funding reset?
The Government has announced that Social, Civic and Community Participation (SCCP) funding will be reset, and Capacity Building Daily Activities funding will also be reduced. These changes are intended to align funding levels more closely with historical spending patterns and encourage greater use of community based opportunities.

What does this means for me?

If you use NDIS funding for community participation, skill development or day-to-day capacity building activities, your future budgets may look different when your plan is reviewed. From 1 October 2026, participant support budgets for SCCP and daily capacity-building activities will be progressively reset as plans are reassessed or renewed.

2. What are Support Determinations?
The reforms introduce a new power called a support determination. This allows the Government to make changes to funding for certain types of supports in existing NDIS plans. The Government plans to use a support determination to reduce funding for:

– SCCP supports by 50%, and
– Capacity building daily activities supports by 10%.

The Government has advised that support determinations will not affect a range of critical disability supports for eligible participants, including personal care, disability-related health supports, assistive technology, transport, home and vehicle modifications, Specialist Disability Accommodation (SDA), and continuous 24-hour disability support.

What does this mean for me?

If your plan includes funding for community participation or capacity-building supports, these budgets may change when your plan is reviewed or renewed. Please let us know as soon as you become aware of a new plan or any changes to your funding. This allows our team to review the plan, understand how the changes may affect supports, and work with you to ensure services continue to meet the participant’s needs. The sooner we are informed, the sooner we can respond and help avoid disruptions to services.

3. What is a Functional Capacity Assessment?
Functional Capacity Assessments are planned to become part of the future NDIS access process. Instead of focusing mainly on diagnosis, these assessments will look at how a person’s disability impacts their day-to-day life, independence, and ability to participate in the community. To support this work, the Government has established a Technical Advisory Group to help develop the assessment framework and eligibility thresholds, and has purchased the I-CAN assessment tool, which is being adapted to help determine support needs and guide future plan budgets.

What does this mean for me?
Many participants and families may need to provide evidence about how disability impacts day to day functioning rather than relying solely on a person’s diagnosis.

4. What is changing for Support Coordination?
The Government plans to introduce a new Support Coordination and Connection service, replacing the current Support Coordination model. Under this approach, participants will no longer purchase Support Coordination through their NDIS plan and will instead select from providers funded directly by the NDIA.

What does this mean for me?
Participants should continue to work with their existing Support Coordinator. Any future transition arrangements are expected to be communicated well before any changes take effect.

5. Will I need to use Registered Providers?
As the reforms are implemented, provider registration requirements will gradually increase. For some higher-risk supports, including personal care and certain daily living services, participants may need to use registered providers. Lower-risk supports are expected to remain available through both registered and unregistered providers.

What does this mean for me?
Mercy Connect is a registered NDIS provider. If you use any unregistered providers, you may wish to check whether future changes to provider registration requirements could impact the supports you currently receive.

6. NDIS Reform Timeline
The timeline below outlines the key NDIS reform changes currently scheduled by the Government. Timeframes may be subject to change as further details become available.

1 October 2026

Changes to Community Participation and Capacity Building funding begin for new plans and plan reassessments.

1 February 2027

New rules for determining reasonable and necessary supports come into effect.

1 April 2027

The transition to the New Framework Planning model commences.

1 July 2027

Registration requirements begin expanding, with higher-risk supports increasingly required to be delivered by registered providers. Implementation will continue through to 2030.

1 October 2027

Changes to Plan Management arrangements commence.

1 January 2028

New NDIS eligibility requirements begin applying to new applicants.

1 July 2028

The new Support Coordination and Connection service is introduced.

1 January 2028 to 31 December 2030

Existing participants will be progressively reviewed against the new eligibility requirements and transitioned to the updated system.

We understand that these reforms may create questions and uncertainty for participants and families. As further information becomes available and the reforms continue to be implemented, I will keep you informed through regular updates to help you understand what the changes may mean and how Mercy Connect can support you during this transition.