New NDIS Act – What You Need to Know About the Changes

Home » Disability and the NDIS » New NDIS Act – What You Need to Know About the Changes

The Federal Parliament recently passed new legislation that will see some proposed changes to the NDIS start to roll out.

While a lot of things still need to be made clear, here are some of the most important things to know right now.

Why have these NDIS changes been made?

The NDIS is being overhauled in response to the NDIS costs far exceeding the government actuarial estimates, and as a result of the recommendations that came out of the NDIS Review. New laws are needed because the NDIS is governed by legislation.

The new Bill, known as the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No.1) Bill 2024, was passed by the Federal Parliament on 22 August.

It aims to bring about reforms that realign the NDIS with its original intention and to deliver better outcomes for people with disability.

The Bill received Royal Assent on 5 September 2024, which means that the new NDIS laws will come into effect on 3 October 2024. 

A smiling young boy with disability wearing a striped shirt sits in a red wheelchair positioned in front of a table with a block puzzle on it.

Safe, effective manual handling can be especially important for people with severe or complex disability

Changes to eligibility assessments

Under the new laws, budgets will be based on an individual’s needs rather than their diagnosis.

At this stage, we are not aware as to how the NDIS eligibility criteria will change, but the law does mean that eligibility will be assessed differently. Budgets will be determined by a needs assessment, which will need to prove the person has a significant functional impairment. It is not yet clear exactly what this assessment will involve, although it will look at an individual’s disability needs across the board. The government has indicated this assessment will be co-designed with the disability community. 

A person will only be able to access NDIS funding for impairments that meet the disability or early intervention criteria.

The government recently admitted that participants may need to pay for this needs assessment.

Once the law comes into effect, this will impact people applying to access the NDIS. It will also affect current participants when they have an eligibility reassessment.

Changes to the definitions of an NDIS support

The new legislation will strictly define what is considered to be an NDIS support. Essentially, there will be two lists:

1. Supports that are ‘NDIS supports’ – which can be funded by the NDIS.

2. Supports that are not ‘NDIS supports’ – which you cannot spend NDIS funding on.

In some respects, this will not significantly change the way NDIS funding can be spent. For example, based on the information currently available on the upcoming changes, it appears that participants will still be able to use their funding for things like assistive technologies, therapeutic supports and home modifications.

Things like gambling, alcohol and day-to-day living costs are still off the funding list.

However, there are many things listed on the ‘no’ list that people have been using to reach their goals for a long time, so this is a concern.

For example, more and more items are being crammed into the non-funded ‘day-to-day living costs’ category, which includes necessities like rent, food, and electricity.

As a result, the only way for a person with disability to get funding for these items (e.g. an air-conditioner) is to prove they need them as a direct result of their disability. Proving this is an extremely difficult process and likely to place additional administrative demands on the participant.

If you want something on the ‘no’ list, you will have to lodge an application form identifying an item on the ‘yes’ list that it replaces. You have to prove the banned support is cheaper and delivers a better outcome than the support on the approved list. It is then up to the CEO to decide whether to grant it.

A man with brown hair, a greying beard and glasses holding a newspaper is seated in a wheelchair. Another man standing beside him is handing him a glass of water.

The new law will divide support into ‘yes’ and ‘no’ lists.

Several concerns about this change have also been raised by the disability community, including:

  • The draft document outlining what is and is not considered to be an NDIS support is incredibly complex.
  • The lists do not encourage community inclusion, and instead seem they will increase segregation.
  • The lists make NDIS supports sound more like a ‘disability shop’.
  • No list is able to capture every item that will be appropriate for every person possible.
  • Changes are expected to take effect quite quickly and have not allowed for adequate consultation and communication.

Changes to control the pace of spending

The new legislation will also contain measures to pace the spending of NDIS plans.

Funding will need to be used in a way that will last, based on the plan.

Plans approved after the law takes effect will have specific funding periods of up to 12 months. Plans will specify how much funding can be spent during each period.

Any funding not spent during one plan period will be rolled over into the next one, so long as it is under the same plan.

This change will impact new and current participants upon new plan approval.

There will also be stricter limits on top-ups to help prevent people overspending their plan funds, although how this will work remains unclear.

And if the NDIA believes whoever has control of your NDIS funds (eg you, your nominee, or your plan manager) is unlikely to spend them properly, they can consider changing your plan management type.

Changes to early intervention supports

The new law will introduce a new early intervention pathway for children entering the scheme.

Under updated early intervention requirements, children will only be able to access the NDIS if they need supports classified as NDIS supports (rather than mainstream supports).

Children will need to undergo a needs assessment to determine their disability-related support needs. They may need to undergo a reassessment when they turn nine to see if they are still eligible.

The NDIS will work alongside members of the disability community to create the new early intervention pathway.

Changes to the NDIS claims and payment framework

A smiling toddler wearing an orange tracksuit and brown beanie sits at the top of a slide. A person wearing blue pants and a white top stands beside the toddler holding his hand.

Children will undergo a needs assessment to work out whether their support needs can be NDIS funded.

To provide more clarity about how claims should be made, the changes will also include a legislative claims and payments framework.

Claims on NDIS plans will need to be made within two years after the support was provided. This will apply as soon as the law comes into effect. However, there will be a 12-month grace period during which the NDIA will honour claims for supports that were provided before the law came into effect.

Under new claiming requirements, claims must meet certain criteria to be eligible for payment. To be payable, claims must:

  • be made by the person who is managing the plan funding
  • be made in an approved format (the form is yet to be created)
  • contain all necessary information.

Other changes

Here are some other things that will change under the new legislation.

  • Plan variations – you will be able to make certain changes to your plan without needing to create a new one.
  • Revoking the status of a participant – the NDIA can ask you to provide specific information or do certain things (such as undergo an assessment) if they are thinking about revoking your participant status. If you do not comply with their request ‘within a reasonable time’, they may revoke your NDIS access.

The NDIA has promised to work in partnership with participants and the disability community as these changes come into effect.

What do you need to do?

The new legislation will take effect 28 days after it is officially approved by the Governor General.

In the meanwhile, your NDIS access and supports will continue unchanged.

You can find out more at:

The NDIS website – Changes to NDIS legislation

Department of Social Servies – Draft list of NDIS Support

If you’d like to get involved, join the Participant First Engagement Initiative or visit DSS Engage.

Active Ability – we’re here through all the changes

At Active Ability, we have an unwavering commitment to supporting people with disability to have the best possible health, independence and quality of life.

We’ve been around since before the NDIS started, and we’ll continue to support our participants through all the changes.

We look forward to keeping you updated as more information becomes available over the coming months. And if you’d like to discuss anything, or learn more about how we can help you, please contact us on (02) 8678 7874, hello@activeability.com.au or via our contact form.

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