Understanding the NDIS Changes from July 2025 A Comprehensive Guide for Participants and Providers

Ben Turner
Aug 14
6 min read

The National Disability Insurance Scheme (NDIS) is set to undergo major changes from July 1, 2025. These updates are designed to enhance the experience for participants, families, and providers in a more meaningful way. Let's explore what these changes entail and how they might impact your experience.

Change can feel uncertain – but we’re here to make it clear

From 1 July 2025, the NDIS has introduced some of the biggest updates in recent years. These changes affect:

How and when your plan funds are released
What you can (and can’t) use NDIS funding for
How much providers can charge for services

The good news? The total amount in your plan hasn’t changed – but how it’s managed has. And with the right information, these changes can actually make it easier to budget, plan ahead, and avoid running out of funds.

At Recovery Oriented Services, we’ve gone through the official NDIA documents and pulled out the key details – plus added examples from our own experience working alongside participants – so you know exactly what to expect.

1. Quarterly Budgets (Funding Periods)

What’s new?

In the past, most participants got their entire year’s funding available at once. This sometimes led to challenges – some people found themselves short later in the year, and some experienced “over-servicing” by providers early in the plan.

From 19 May 2025, all new or renewed plans will release funding in smaller chunks called funding periods. For most people, these will be quarterly – four times a year.

How it works:

Default: 3 months per period (e.g. July–Sept, Oct–Dec, Jan–Mar, Apr–Jun)
Other options: NDIA may choose monthly, weekly, or 6-monthly periods if it suits your supports better
Example:
- Annual Core budget: $20,000
- Released quarterly: $5,000 available each 3-month period

Why this can help:

Encourages steady, even spending
Reduces risk of funds running out early
Makes it easier to track your budget in smaller, more manageable amounts

Rollover rules:

If you don’t use all the money in a period, it rolls into your next period within the same plan.But: Funds don’t carry into a new plan when your plan ends – so you can’t “save it all” for after a review.

2. What happens if funds run out early?

If you’ve used all the money for your current period before the next release date, the NDIA’s default position is:You’ll need to wait until the next period’s funds are released.

But there are some things you can try:

Check for rollover from earlier periods – Any unused money from previous periods in your plan will be available to use.
Adjust services – You may be able to pause or reduce non-essential supports until the next period starts.
Request a plan variation – If your needs have changed (e.g. an accident, illness, hospital discharge), the NDIA can sometimes move future funding forward or add a one-off boost.
Plan reassessment – If your overall needs have grown, you can request a full review to increase your budget.

Example:Imagine you have $3,000 for this quarter and you’ve spent $2,800 by week 8. You realise you need an extra $500 for urgent therapy sessions. You check your rollover balance – last quarter you had $400 unused, so you can cover most of it. For the rest, we’d help you contact NDIA to see if an early variation is possible.

3. Clear rules on what you can spend NDIS funds on

From 3 October 2024, the NDIA published two clear lists:

Allowed Supports – Things NDIS will fund (e.g. therapies, assistive technology, personal care) if they’re connected to your plan goals and disability needs.
Excluded Supports – Things NDIS will not fund (e.g. rent, groceries, alcohol, gambling, illegal items, general household bills, medical services covered elsewhere).

This makes it easier to know straight away whether something is claimable.

The transition period:

Until 3 October 2025, if you make one or two small mistakes (under $1,500 each), NDIA will contact you to explain – you won’t have to repay straight away. After that, or for bigger/repeated mistakes, the NDIA can recover the funds.

Tip: If you’re not sure whether something is allowed, ask us before you buy. It’s much easier to check in advance than to fix it later.

4. Replacement Supports – More flexibility in special cases

Sometimes the thing that will help you most isn’t on the allowed list – but if it can replace something in your plan and still achieve the same (or better) outcome for the same or lower cost, you can apply for a Replacement Support.

How it works:

You must apply before buying the item or service.
NDIA must approve it in writing.
If they say no, you must wait 12 months before re-applying for that specific item.

Example:If your plan funds a specialised exercise program for mobility, but you’ve found a local fitness class that offers the same benefits for less money, we could help you apply for it as a replacement support.

5. Pricing updates from 1 July 2025

Each year on 1 July, the NDIA updates its price limits. This year’s changes include:

Support Worker Rates: Up by 3.95% to reflect national wage rises.
Therapy Services: Prices adjusted to match mainstream market rates – some reduced (e.g. physiotherapy, dietetics) and some increased (e.g. psychology in some states).
Provider Travel: Travel charges now capped at 50% of hourly rate and limited to set time allowances (30 minutes each way in metro areas; 60 in regional).
Early Childhood Supports: Age range extended to include children up to age 9.
Provider Conduct Rules: Clearer requirements for avoiding conflicts of interest and preventing over-servicing.

Why this matters: These price changes mean you should be charged more in line with what others pay outside the NDIS, stretching your budget further and protecting you from over-charging.

2025-26 NDIS Pricing Arrangements and Price Limits Updates

The NDIS Pricing Arrangements and Price Limits for 2025-26 feature several significant updates:

Increased Support Worker Rates: Rates for support workers will increase. This change reflects the rising cost of living and ensures participants can access high-quality care.
Adjustments to Therapy Prices: The cost of therapy services will be adjusted, aiming to keep prices competitive so that all participants can benefit from necessary support.
New Caps on Provider Travel Charges: Caps on travel fees have been introduced to prevent excessive costs. Participants will no longer face unexpected charges that could strain their budgets.
Extended Early Childhood Approach Age Limit: The previous age limit for early childhood intervention has been raised, allowing more children access to critical early support services.
Stricter Rules to Prevent Conflicts of Interest and Over-Servicing: New policies are being enforced to minimize any potential conflicts of interest among service providers. This change aims to protect participants from unnecessary expenses and ensure they receive the appropriate level of support.

Practical Tips for Budgeting and Communication

Managing these changes can be challenging, but effective budgeting and communication strategies can make a difference:

Keep Track of Spending: Regularly monitor how much you spend each month. This helps identify areas where you may need to adjust. For example, if you notice increased spending on transport, consider evaluating closer services.
Communicate with Providers: Maintain open lines of communication with your service providers. Discuss any changes in your needs or circumstances to ensure they can give you the best support possible.
Plan for Future Needs: Think about your needs in the coming months. Consider how the changes in your budget may affect your future support, allowing you to make informed decisions about your plan.
Seek Support: If you feel overwhelmed, don't hesitate to reach out for help. Family, friends, or organizations specializing in support can lighten the load and provide valuable assistance.

6. How Recovery Oriented Services can help

The NDIS changes set to take place from July 2025 represent a significant shift in how funding will be managed and allocated. By comprehending these adjustments, participants, families, and providers can navigate the new system confidently.

With quarterly budgets, clearer support lists, and updated pricing, the NDIS aims to create a more responsive system that caters to the diverse needs of participants. Recovery Oriented Services is here to help you every step of the way, offering the guidance and resources you need to make the most of your NDIS plan.

We know these changes can feel like a lot to take in. Our team can:

Explain how quarterly budgets work for your plan type
Help you budget so your funds last each period
Check purchases before you commit
Support applications for plan variations or replacement supports
Liaise with providers to make sure they understand your budget and service schedule