Keeping Supports Steady: Psychosocial Disability and NDIS Changes

The NDIS is changing quickly and it can be hard to keep up. Many people with disability aren’t seeing the updates, yet the impacts are real. Here's a recap on what’s shifting and how OTs can respond.

Psychosocial disability needs steady, long-term support

Early intervention matters, but it won’t replace the NDIS for everyone. Many people with psychosocial disability have ongoing, fluctuating needs. They benefit from stable, wraparound supports across home, community, education and work.

OTs understand everyday life. We translate goals into routines, coordinate teams and show how supports improve function. Our voice is essential in this debate.

The information gap is real

Policy moves fast. Participants often hear last. That isn’t co-design. Let’s keep updates simple, timely and accessible so people can make informed choices.

What’s turning up in plans

Therapists are seeing plans with sharp reductions or odd phasing that block setup and continuity. Example: a five-year plan with only 10 hours of capacity building released in quarter one, then nothing. Without clear reasons or a pathway to adjust, progress stalls.

Another risk sits with people who rely on larger core budgets to live independently. If those budgets drop without alternatives, we’ll see more hospital presentations, housing stress and crisis care. Short-term cuts don’t save money if they shift costs elsewhere.

Support needs assessments are delayed

The Support Needs Assessment is now pushed to mid-2026. Decision rules are unclear in the meantime. Transparency helps everyone plan and keeps decisions accountable.

Foundational supports and ‘Thriving Kids’

Early childhood changes sound promising but details are thin. If services outside the NDIS aren’t real, funded and available, families will miss out. OTs know what works for children and caregivers – our practical input should shape any new model.

Pricing and the IHAPCA work

Consultation feedback shows current pricing often fails to cover the true cost of quality services, especially in regional and remote areas. When prices don’t match delivery, access shrinks and innovation slows. Evidence-based pricing supports equity and a stable workforce.

Art and music therapy

Their evidence base has been recognised, yet recent price cuts send a poor signal to a highly trained, largely female workforce. When rates fall, participants lose access to skilled, consistent support.

Section 10 and housing

The transitional Section 10 rule has changed what’s considered mainstream versus reasonable and necessary. In practice, some people are being pushed toward costly home modifications when relocation would be safer, faster and cheaper. Permanent rules should weigh lifetime cost, safety and function – not just categories.

What OTs can do right now

• Strengthen assessments: Cover permanence, functional capacity and support needs in every report. Use the ICF and make your reasoning easy to follow.
•   Log impacts: Track plan changes, delays and risks. Share trends through peer groups to support advocacy.
•   Keep participants informed: Use plain-English updates, timelines and checklists for reassessments.
•   Plan for continuity: If funding is phased, map what can start now, what needs bridging and what will stall.
•   Back the ecosystem: Stand with allied health peers on pricing and access. A strong network helps participants most. 

Key takeaways

•   Psychosocial disability often needs lifelong, wraparound supports – early intervention alone won’t replace the NDIS.
•   People with disability must be included and informed or reforms will miss the mark.
•   Current plan structures are creating gaps in setup and continuity, with hidden risks in housing and core supports.
•   Pricing should reflect real delivery costs to protect access, quality and workforce stability.