New NDIS funding changes are starting from 1 October 2026, and participants, families and Support Coordinators may understandably have questions about what they mean.

The NDIA confirmed on 17 September that some participant support budgets will be reduced progressively over the coming 12 months.

The changes affect two areas:

• Social, Economic and Community Participation
• Improved Daily Living Skills

But this does not mean every participant will suddenly lose 50% of their entire NDIS funding on 1 October.

The changes apply to specific support budgets, will be introduced progressively and include protections for a range of critical and essential supports.

Here is what participants, families and Support Coordinators need to know.

What NDIS funding changes start on 1 October 2026?

The Australian Government has confirmed changes to budget allocations for two areas of NDIS support.

From 1 October:

• budget allocations for Social, Civic and Community Participation supports, referred to in the NDIS Act as Social, Economic and Community Participation, will be reduced by 50%
• budget allocations for Capacity Building Daily Activities, referred to as Improved Daily Living Skills, will be reduced by 10%.

These changes will not happen to every participant on the same day.

The NDIA says the reductions will be introduced progressively:

• From 1 October 2026: when a new plan is approved or a plan is reassessed
• From 1 February 2027: when an existing plan is renewed.

Are NDIS plans being cut by 50%?

No. A 50% reduction does not apply to a participant’s entire NDIS plan.

This is an important distinction because headlines or discussions about “50% NDIS funding cuts” can easily create the wrong impression.

The 50% reduction applies to budget allocations for Social, Civic and Community Participation supports.

The impact will also differ between participants because every NDIS plan is based on individual circumstances, goals and support needs.

Other parts of a participant’s plan may not be affected by these changes.

What does this mean for NDIS Community Participation funding?

Social and Community Participation supports can help people with disability participate in community, social and recreational activities and work towards greater independence and connection.

From 1 October, budget allocations for this category will begin reducing progressively as affected plans are created or reassessed.

The Government says the reset is intended to bring average spending on Social and Community Participation back towards 2023 levels and make it more consistent with other systems.

The Government is also establishing a $200 million Inclusive Communities Fund, intended to build the capacity of community organisations to provide more inclusive activities for people with disability.

Importantly, Community Access has not simply been removed from the NDIS.

Participants should look at what the changes mean for their individual plan rather than assuming a headline percentage will apply uniformly to every support they currently receive.

Which NDIS supports are not affected by the changes?

The NDIA has confirmed that several groups of supports will not be affected by these budget reductions.

These include:

• employment supports
• disability-related health supports
• high-intensity supports
• intensive and complex behaviour supports.

The NDIA has also identified essential day-to-day supports that will not be affected, including help with:

• eating and drinking
• dressing
• toileting
• laundry and cleaning
• nursing care
• medication
• home and vehicle modifications
• personal mobility equipment
• Specialist Disability Accommodation.

The NDIA says a full list of supports that will not be affected will be published shortly.

When will the NDIS funding changes affect my plan?

The changes begin on 1 October 2026, but that does not mean every existing NDIS plan changes on that date.

The reductions will begin applying when:

From 1 October 2026: a new plan is approved or an existing plan is reassessed.

From 1 February 2027: an existing plan is renewed.

This means participants will experience the changes at different times.

If your existing plan remains in place, continue using your approved supports in accordance with your current plan.

What if my support needs or circumstances change?

Participants can still request changes to their NDIS plan where their circumstances change.

According to the NDIA, a plan reassessment may be considered following a significant and ongoing change in areas such as:

• ability to complete daily activities
• living arrangements
• education or employment circumstances
• available informal supports.

The NDIA is also introducing a new plan variation pathway for participants with high support needs who require 24-hour disability support.

The NDIA says eligible participants will be able to apply for a plan variation within 90 days of a support determination applying to them. Funding may then be increased where necessary to ensure the participant can continue receiving supports that help keep them safe at home.

Further information about this pathway is still to come.

Can participants appeal the NDIS budget reduction?

The NDIA states that the support budget reduction itself is not a reviewable decision.

However, participants can still request changes to their plan, including a plan reassessment or plan variation, if their circumstances change and the relevant requirements are met.

If you are concerned about how the changes could affect your supports, it is important to consider your individual plan and circumstances rather than relying solely on general information about the reforms.

What should NDIS participants and families do now?

There is no need to panic or immediately stop using existing supports because of the October changes.

Instead:

• check when your current NDIS plan is due for reassessment or renewal
• understand which support categories are included in your plan
• keep information about your current support needs and circumstances up to date
• speak with your Support Coordinator, plan manager or the NDIA if you need information about your individual circumstances
• watch for further official guidance from the NDIA.

The NDIA has already confirmed that further information, including the complete list of supports excluded from the reductions, will be released.

What happens next?

The first NDIS support budget changes begin from 1 October 2026 for new and reassessed plans.

From 1 February 2027, the changes will also begin applying as existing plans are renewed.

Further guidance is expected from the NDIA, including more information about protected supports and the plan variation pathway for participants requiring continuous 24-hour disability support.

At DisabilityCo, we will continue monitoring the NDIS changes and sharing important updates as new official guidance becomes available.

For now, the most important thing to remember is:

The October changes do not mean every participant’s entire NDIS plan will be cut by 50%. The changes apply to specific support budgets, will be introduced progressively and will affect participants differently.

Read the official NDIA update: Changes to support budgets from 1 October

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FAQ

Are NDIS plans being cut by 50%?

No. The 50% reduction applies to budget allocations for Social, Civic and Community Participation supports, not to a participant’s entire NDIS plan. Individual impacts will vary.

When do the NDIS funding changes start?

The changes begin from 1 October 2026 for new plans and reassessments. From 1 February 2027, they will also begin applying when existing plans are renewed.

Is NDIS Community Access still funded?

The reforms do not simply remove Community Access from the NDIS. They change budget allocations for Social, Economic and Community Participation supports. The effect on an individual participant depends on their plan, circumstances and support needs.

Will critical daily supports be reduced?

The Government and NDIA have identified a range of critical and essential supports that are protected from these reductions, including high-intensity supports and essential assistance with daily activities.

Will my existing NDIS plan change on 1 October?

Not necessarily. The changes are being introduced progressively as new plans are approved, plans are reassessed and, from February 2027, plans are renewed.