Important Changes to NDIS Funding
You may have heard about significant changes to NDIS funding following new Australian Government legislation. The reforms are complex, but there are two upcoming funding changes that may be particularly relevant to Kurrajong clients, families and carers.
Changes to Social, Civic and Community Participation funding
From 1 October 2026, the Australian Government will begin progressively applying a 50% reduction to Social, Civic and Community Participation budget allocations for existing NDIS participants.
The changes will be rolled out over a 12-month period, meaning participants will be affected at different times. Not everyone’s funding will change on 1 October, but existing participants will begin receiving reduced allocations from that date. The Government intends for the reduction to be applied across all participant plans during this 12-month transition.
If you currently use Social, Civic and Community Participation funding to pay for supports, the amount allocated to this part of your plan will reduce by 50% when the change is applied to your plan.
For participants who currently use most or all of this funding, this is likely to mean less funding is available to purchase supports. The practical impact will depend on your individual plan, how much of your current allocation you use and how your plan has been built by the NDIS.
The Australian Government has stated that budgets for critical supports, including supports in employment, disability-related health supports and essential supports in the home, will not be reduced by these funding resets. However, full details about how these protections will be applied to plans are still to be released.
Changes to Capacity Building – Daily Activities funding
The Government has also announced a 10% reduction to Capacity Building – Daily Activities budget allocations. This category can fund a range of supports aimed at building everyday skills, independence and capacity, including many therapy and assessment supports.
If you currently use Capacity Building – Daily Activities funding, the amount allocated to this part of your plan will reduce by 10% when the change is applied to your plan.
What does this mean for me now?
These changes will not affect every participant at the same time.
There is no need to reduce or change your current Kurrajong supports simply because these reforms have been announced. Please continue using your current plan and supports as usual.
However, if you currently rely heavily on Social, Civic and Community Participation or Capacity Building – Daily Activities funding, it may be useful to start considering what a lower future allocation could mean for your supports, weekly routines and family or informal support arrangements.
What happens next?
Kurrajong is continuing to investigate what these funding changes may mean for the people we support. However, NDIS plans and funding arrangements vary considerably between participants, and there is currently not enough detail from the NDIA for us to accurately determine the full impact for every individual. We will continue to investigate the reforms and provide further information as more detail becomes available.
In the meantime, clients, families and carers may wish to discuss their individual circumstances with their NDIS representative, Support Coordinator or Plan Manager. They may be able to help review current funding and spending arrangements and seek further clarification from the NDIA where required.
If your NDIS funding changes, Kurrajong will work with you to understand what this means for your Kurrajong supports and the options available to you. If you have questions specifically about your Kurrajong supports or services, please contact First Contact on 1300 764 620.
If you have concerns about the changes
These reforms have been made by the Australian Government and will be implemented through the NDIA. Kurrajong does not determine the amount of funding included in individual NDIS plans.
For the latest information about the NDIS reforms themselves, please refer to information published by the NDIS and Australian Government.
If you would like to provide feedback about the broader reforms, you can:
• Participate in the Australian Government’s NDIS consultation process;
• Contact your local federal Member of Parliament: Michael McCormack MP (Riverina), David Farley MP (Farrer) or Jamie Chaffey MP (West Wyalong/Bland); or
• Contact the Hon Mark Butler MP (Minister for Disability and the NDIS), Senator Jenny McAllister (Minister for the NDIS) or Melissa McIntosh MP (Shadow Minister for the NDIS).