The National Disability Insurance Scheme (NDIS) is undergoing several changes following the passage of new legislation in August 2026. Some changes have already started, while others will be introduced over the coming months and years. For participants and families, understanding these changes is important because they may affect how funding is allocated, how plans are renewed and how supports are accessed. The key point is that not all changes apply immediately, and the impact will depend on each participant’s circumstances and NDIS plan. As of October 2026, changes to two support budget categories have begun rolling out. Other updates involving claims, plan renewals, provider registration and eligibility are scheduled for later dates. This guide explains what has started, what is coming next and what the changes mean for people considering disability housing and support options.
What NDIS Changes Started in October 2026?
From 1 October 2026, the NDIA began progressively applying reductions to funding allocations for two support categories as new plans are approved or existing plans are reassessed. The changes are part of the new NDIS legislation and will be introduced over a 12-month period.1. Social, Economic and Community Participation
Under the announced funding reset, budget allocations for Social, Economic and Community Participation are being reduced by 50%. This category relates to eligible supports that help participants engage in community activities and pursue social or economic participation goals. The percentage refers to the announced budget reduction, not a guarantee that every participant will experience exactly a 50% reduction in the support they currently receive. The actual impact depends on the participant’s plan, circumstances and the supports covered by the relevant rules.2. Improved Daily Living Skills
Budget allocations for Improved Daily Living Skills are being reduced by 10% under the announced changes. This category relates to eligible supports intended to develop skills and functional capacity, including relevant therapy and skill-development services. The effect will vary according to the participant’s individual plan and the supports included in the category. Importantly, some supports within the affected categories are excluded from these reductions.Will the October Changes Affect Your Current Plan Immediately?
Not necessarily. The changes are being introduced progressively rather than being applied to every participant’s existing plan on the same day. The announced implementation schedule is:- From 1 October 2026: The new funding arrangements apply to new plans and plans that are reassessed.
- From 1 February 2027: The arrangements extend to plans that are renewed.
Which Supports Are Not Affected by These Funding Reductions?
The October budget reductions are limited to the specified support categories and do not apply to every part of an NDIS plan. The NDIA has identified essential day-to-day supports and other specialised supports that are excluded from the reductions. These include:- Assistance with eating, drinking, dressing and toileting
- Laundry and cleaning support
- Nurse care and medication-related support
- Home and vehicle modifications
- Personal mobility equipment
- Specialist Disability Accommodation (SDA)
- Employment supports
- Disability-related health supports
- High-intensity supports
- Intensive and complex behaviour supports
- Customised and wearable technology
- Hearing services
What Do the Changes Mean for Specialist Disability Accommodation?
Specialist Disability Accommodation provides specialised housing for eligible NDIS participants with significant functional impairment or very high support needs who require a specialised living environment. The October 2026 funding reset does not include SDA in the categories being reduced. This is important for participants and families exploring housing options because SDA eligibility and funding are separate considerations from the two affected budget categories. On 22 October 2026, the NDIA also announced a separate update to how SDA funding appears in plans. From 19 October 2026, the full SDA funding amount a participant is eligible for is included in their approved plan, whether they are already living in an SDA home or looking for one. This change does not alter how SDA eligibility is decided or increase the amount a participant is eligible to receive. Participants who currently have a placeholder amount or less than their full eligible amount will generally have their funding updated at reassessment. Some participants moving into an SDA home may be able to have it updated earlier through the relevant change-of-circumstances process. For participants exploring accommodation, understanding eligibility, property suitability and the supports needed for daily living remains important.What If You Require 24-Hour Disability Support?
The new legislation includes a specific plan variation pathway for eligible participants who require 24-hour funded disability support. Under the published criteria, participants must have a combined plan budget of at least $215,030 across Assistance with Daily Life, Home and Living, and Assistance with Social, Economic and Community Participation, and receive 24-hour funded NDIS supports for needs arising directly from the impairments for which they access the NDIS. Eligible participants can request a plan variation under this pathway within 90 days of the relevant support determination applying to them. The NDIA may increase funding in relevant home and living or assisted daily living categories if it determines this is necessary to maintain the participant’s 24-hour support arrangements. The amount and outcome depend on the applicable criteria. Participants who believe this pathway may apply to them should check the official NDIA guidance and seek clarification about their individual circumstances.Other NDIS Changes Coming: December 2026 and Beyond
The October funding changes are only one part of the broader reform program.From 1 December 2026: Claims Timeframes
From 1 December 2026, claims will generally need to be submitted within 90 days of the support being delivered. This makes timely record-keeping and claims management important for participants, plan managers and providers. Participants should retain relevant service records and check that their plan-management arrangements allow claims to be submitted within the required timeframe.From 1 February 2027: Plan Renewals and Unspent Funding
From February 2027, when a plan reaches its reassessment date, it may be reassessed by an NDIA planner or renewed with the same supports as the previous plan. This new plan renewal process will replace plan continuations for many participants. Under the announced arrangements, unspent funding from the previous plan will not carry over into a renewed plan. Participants should monitor their budgets, understand any funding periods and discuss upcoming plan changes with their support team. Funding should be used for appropriate supports that meet their needs, not spent unnecessarily simply to avoid an unspent balance.From April 2027: A New Planning Approach
The NDIA plans to begin introducing a new way of planning from April 2027. Further information will be provided as the new process is developed and participants are prepared for the transition.From July 2027: Expanded Provider Registration
Mandatory registration requirements are scheduled to expand for some providers, including those delivering personal care and daily living supports and supports provided in closed settings. The detailed requirements and their application will depend on the final implementation arrangements.From October 2027: Plan Management Changes
A trusted panel of plan management providers is scheduled to be established from October 2027, with participants transitioning to a provider on the panel over a six-month period. Participants should follow official updates to understand how this will apply to their plan-management arrangements.From January 2028: Eligibility Changes
Changes to NDIS access are scheduled to begin for new applicants from January 2028, with existing participants reassessed over three years. The planned changes include a new standardised, evidence-based assessment of functional capacity and more consistent assessments of permanence and other relevant access requirements. These changes are not all taking effect in October 2026. Participants should follow official announcements as the implementation details become available.What Should NDIS Participants Do Now?
For many participants, there may be nothing they need to change immediately. However, taking a few practical steps can help you understand your current arrangements and prepare for upcoming changes.- Review your current plan: Understand your budgets, funded supports and any scheduled reassessment or renewal.
- Read NDIA communications: Check notifications about changes that apply to your individual plan.
- Track your support needs: Record any significant changes in daily activities, functional capacity, living arrangements or informal support.
- Prepare for reassessment: Gather relevant reports and information about your support requirements.
- Speak with your support team: Where appropriate, discuss funding, claims and plan-management questions with your support coordinator or plan manager.
- Review housing requirements: If you are considering SDA, check the relevant eligibility criteria and understand how housing funding differs from daily living assistance.
Treat You as an Individual, Not Just a Case Number
At Specialist Disability Housing, we recognise that every participant has different support needs, housing preferences and long-term goals. NDIS reforms can raise questions about how funding, housing and daily support arrangements fit together. Understanding the distinction between specialised accommodation and other funded supports can help participants make more informed decisions. For eligible participants exploring SDA, the focus should remain on finding a living environment that meets their accessibility requirements and supports their preferences and independence. If you are considering disability housing, understanding your individual circumstances is an important starting point.Let’s Stay Connected
Understanding your housing options is an important part of planning for comfort, accessibility and independence. At Specialist Disability Housing, we understand that every participant’s needs and goals are different. Looking for disability housing or Specialist Disability Accommodation information? Email: info@sdhwa.com.au Phone: (08) 9468 5550 Website: www.sdhwa.com.auFAQ’s
- What NDIS changes started on 1 October 2026?
- Will every participant lose 50% or 10% of their NDIS funding?
- Is Specialist Disability Accommodation affected by the October 2026 funding reductions?
- What changes are coming in February 2027?
- Where can I find the latest information about NDIS changes?
