Major changes to the NDIS Act have reshaped how participants are assessed and funded, and tighten rules for providers. The NDIA will host a special webinar to provide details of key changes next week.

It’s been nine months since Bill Shorten’s major legislative overhaul of the NDIS officially came into effect at the beginning of October last year. The ‘Getting the NDIS Back on Track’ aimed to rein in growth, improve integrity, and embed new structures.

It was the legal foundation for a very different scheme - one defined not by hope, but by structure.

The new law doesn’t just tinker around the edges. It redraws the map.

From now on, everyone in the Scheme must be told, in writing, exactly how they qualify: through permanent disability or early intervention. Plans are divided into new and old frameworks and the old will be phased out. The new ones separate funding into two categories: flexible and fixed. Budgets are itemised and providers will need to follow these strictly.

The costs had spiraled out of control. That’s why the PM gave Shorten the job of making clear the days of open-ended spending are over. It was a case of ‘you started it; now you fix it’.

Some cuts were easy. Services that didn’t have a clinical or evidence base - like crystal therapy, reiki, or general wellness products - were out. Shorten loved using examples like these in his sound-bites. The same with ‘lifestyle extras’ and ‘holiday costs’. If it wasn’t on the approved list, it’s not claimable.

He didn’t bother explaining why they’d crept on in the first place. That might have been a bit embarrassing.

But there are other changes too. A new set of “funding periods” is also coming in. Instead of releasing a participant’s budget in full, the NDIA will now drip-feed funding every few months. This gives the Agency more control—and participants less flexibility.

The shift has already started. But this is just the start. At the core of the changes is a tighter, centralised model for determining participant eligibility and funding levels. This marks the biggest legislative shift since the scheme’s inception.

The law now requires every participant to be issued a written decision on whether they are in the Scheme because they met the disability requirements, the early intervention requirements, or both. That may sound administrative, but it's more than a label: it defines what support they’re entitled to, and for how long.

Plans are now divided into two types: new framework plans clearly outlining flexible versus fixed (“stated”) budgets, and old framework plans reflecting legacy arrangements which will be phased out. The NDIA is also shifting to a “funding period” model, where money is made available in staged blocks, such as quarterly, rather than all at once.

Providers will need to take particular care. Only supports that appear on the new, authorised NDIS supports list are eligible. That means common (but non-clinical) therapies are no longer covered. Neither are ‘lifestyle’ expenses.

Last year Shorten insisted that the changes “restore the scheme’s original intent: to serve people with significant and permanent disability.”

To ease the transition, the reforms are being introduced in stages and that’s the purpose behind next weeks webinar being held by the NDIA. Making sure everybody’s on the same page.

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The pressure is on: Assessments, budgets and audit crackdowns reshape the sector

For providers, the implications are immediate.

All plan documents must now clearly show the total budget amount, a breakdown of flexible versus stated supports, and how long the plan runs. This clarity comes with a catch: invoices and service bookings will need to match the plan structure exactly. The days of interpreting ambiguous funding are over.

Assessments now sit at the centre of the planning process. Plans must be built on structured assessments of functional needs, and the NDIA has the power to delay plan development if a participant or provider doesn’t supply required documentation.

Some community and peer-based providers are concerned, seeing this as a move towards standardisation and away from participant voice. It will almost inevitably hit regional areas hardest, because these have the fewest services.

And the government has decided it is no longer prepared to subsidise people in these places.

Treasury projected without these reforms the Scheme’s cost could double within a decade. These measures are expected to reduce growth by at least $1 billion this financial year.

The NDIA is urging all providers to attend training sessions and familiarise themselves with the updated legislation and portal systems. Webinars and support materials are available, but many smaller providers are still catching up.

Further legislative changes, the Getting the NDIS Back on Track Bills No. 2 and 3, are also expected later this year to address deeper reform issues, including mandatory assessments and the controversial "Foundational Supports" model.

Until then, one thing is clear: providers that don’t adapt quickly risk falling foul of increasingly complex and demanding compliance obligations.

The NDIS may be getting back on track - but it’s a new track entirely.