National Disability Insurance Scheme (NDIS)
The National Disability Insurance Scheme (NDIS) is Australia's national scheme that funds reasonable and necessary supports for people with permanent and significant disability. Eligible people get an individual plan and choose their providers. The NDIA runs the scheme and the NDIS Commission regulates providers.
Also called: NDIS Australia, the scheme, DisabilityCare Australia (former name, 2013)
Key takeaways
- The NDIS funds individual plans of disability-related supports for eligible people who apply before they turn 65.
- It is run by the NDIA, while the NDIS Quality and Safeguards Commission regulates the providers and workers who deliver supports.
- Funding is not means-tested and does not pay day-to-day living costs such as rent, groceries or bills.
- Since 3 October 2024, lists made under section 10 of the NDIS Act set out what is and isn't an NDIS support.
- New access rules based on a functional capacity assessment are due to apply to new applicants from 1 January 2028.
What is the National Disability Insurance Scheme (NDIS)?
The National Disability Insurance Scheme (NDIS) is Australia's national scheme that funds reasonable and necessary supports for people with permanent and significant disability. People who meet the access requirements become participants and receive an individual plan with funding they use to buy supports from providers. The scheme is run by the National Disability Insurance Agency (NDIA), and the providers it funds are regulated by the NDIS Quality and Safeguards Commission.
The NDIS is set up under the National Disability Insurance Scheme Act 2013. It is called an insurance scheme because it takes a lifetime view: it invests in supports early (for example, early intervention for young children) on the basis that this can improve outcomes and reduce the need for support later. It is not means-tested, and the funding in a plan is not a welfare payment or income. It pays for disability-related supports.
When people say "the NDIS" they can mean three different things:
- The scheme: the national system of individual funding for people with disability, set out in the NDIS Act and its rules.
- The agency: the National Disability Insurance Agency (NDIA), which decides who can join, builds plans and pays claims. People often say "the NDIS rang me" when they mean the NDIA.
- The funding: the money in a participant's NDIS plan, as in "my NDIS pays for my therapy".
How the NDIS works
The NDIS works through individual plans. Instead of funding services in blocks, the scheme gives each participant a plan built around their disability support needs and goals, and the participant chooses who delivers the supports. Choice and control for people with disability is one of the objects written into the NDIS Act.
- 1Make an access requestApply to the NDIA with evidence of your disability and how it affects daily life, or contact an early childhood partner for a young child.
- 2Access decisionThe NDIA decides whether you meet the age, residence and disability or early intervention requirements.
- 3PlanningYou talk about your goals and support needs, and the NDIA approves a plan with funded supports that are reasonable and necessary.
- 4Choose how funding is managedNDIA-managed, plan-managed, self-managed or a mix. This decides whether you can use unregistered providers.
- 5Use your planChoose providers, sign service agreements and use supports. Providers claim within the NDIS price limits.
- 6ReassessmentPlans are reassessed at the end of their period, or earlier if your circumstances change significantly.
Joining the scheme
A person joins by making an access request. The NDIA checks age (under 65 when the request is made), residence (living in Australia as a citizen, permanent visa holder or protected Special Category Visa holder) and either the disability or early intervention requirements, as described on the NDIA's Applying to the NDIS guideline. Families of children younger than 6 with developmental delay, or younger than 9 with disability, usually start with an early childhood partner through the early childhood approach.
Getting a plan
Once a person is a participant, the NDIA works with them to develop a plan. The plan contains the participant's goals and a statement of the supports the NDIA will fund. Each funded support must meet the reasonable and necessary criteria and be an NDIS support under the lists made under section 10 of the Act. A local area coordinator (LAC) often helps the participant prepare for planning and start using the plan.
Using the funding
Plan funding is usually grouped into Core, Capacity Building and Capital budgets. Participants choose how the funding is managed, and that choice affects which providers they can use:
- NDIA-managed (agency-managed): the NDIA pays providers directly, and only registered providers can be used.
- Plan-managed: a plan manager pays invoices, and the participant can use registered or unregistered providers.
- Self-managed: the participant or their nominee pays providers and claims from the NDIA, and can use registered or unregistered providers.
Most providers must still charge within the price limits in the NDIS pricing arrangements for NDIA-managed and plan-managed participants. You can look up current support items and price limits in the free NDIS price guide.
Reviewing and changing a plan
Plans run for a set period and are then reassessed. A participant can also ask for a reassessment earlier if their circumstances change significantly. If the participant disagrees with a decision, they can request an internal review within 3 months and then apply to the Administrative Review Tribunal (NDIA: how to request a review).
What the NDIS funds (and what it doesn't)
The NDIS funds supports that relate to a participant's disability and help them live day to day, pursue goals and take part in work, study and community life. It does not replace the health system, schools, public transport or other mainstream supports, and it does not pay ordinary living costs. Since 3 October 2024 the boundary is set by lists of what is, and is not, an NDIS support (NDIA: support lists).
| The NDIS can fund (if reasonable and necessary) | The NDIS generally does not fund |
|---|---|
| Help with personal care and daily tasks, including support workers | Day-to-day living costs such as rent, groceries and utilities |
| Therapy, such as occupational therapy, speech pathology and physiotherapy for functional goals | Medical treatment, hospital care and medicines covered by the health system |
| Assistive technology, such as wheelchairs and communication devices | Standard household items, unless approved as a replacement support |
| Home modifications and specialist disability accommodation for eligible participants | School teaching and education adjustments that schools are responsible for |
| Supported independent living, respite and short-term accommodation | Supports that are not evidence-based, or are the responsibility of another government system |
| Support coordination and plan management | Income support (that's Centrelink, not the NDIS) |
What a given participant actually receives depends on their plan. Two people with the same diagnosis can have very different plans, because funding follows functional support needs, goals and the support already available from family and community (informal supports).
NDIS vs NDIA vs NDIS Commission
These three names are often used interchangeably, but they are different things. The NDIS is the scheme, the NDIA runs it, and the NDIS Commission regulates the providers who deliver it. The NDIA explains the difference on its page about the role of the NDIS Quality and Safeguards Commission.
| Name | What it is | Go to them about |
|---|---|---|
| NDIS | The National Disability Insurance Scheme: the national system of individual disability funding | It isn't an organisation you contact; it's the scheme |
| NDIA | National Disability Insurance Agency, the Australian Government agency that runs the scheme | Access, plans, funding, reassessments, payments and decision reviews |
| NDIS Commission | NDIS Quality and Safeguards Commission, the independent regulator of NDIS providers and workers | Provider registration, complaints about quality and safety, reportable incidents, behaviour support |
| Department of Health, Disability and Ageing | The Australian Government department responsible for NDIS policy and legislation | Consultations on NDIS rules and reforms |
In short: go to the NDIA about access, plans, funding and payments. Go to the NDIS Commission about provider registration, complaints about the quality or safety of supports, reportable incidents, behaviour support and worker screening. Policy and legislation sit with the Australian Government's Department of Health, Disability and Ageing, which took over responsibility for the NDIS in 2025.
- The agency that runs the scheme and funds plans
- How a person applies to join the scheme
- The test every funded support must meet
- The law that creates the scheme
- Regulates providers and workers who deliver NDIS supports
- The participant's goals and funded supports
- The legal lists of what NDIS funding can and can't buy
A short history of the NDIS
The NDIS followed a 2011 Productivity Commission inquiry into disability care and support. The scheme started in trial sites on 1 July 2013, beginning with the Hunter area in New South Wales, Barwon in Victoria, children in South Australia and young people in Tasmania, and the national rollout was completed in 2020 (NDIA: history of the NDIS). For a short period in 2013 the scheme was branded DisabilityCare Australia before the NDIS name was restored.
The NDIS Commission began on 1 July 2018 in New South Wales and South Australia, expanded to the other states and territories on 1 July 2019, and to Western Australia on 1 December 2020.
Recent changes to the NDIS (2024–2026)
The scheme has been through its biggest legal changes since it began. If you read older guides, check the date: rules about what the NDIS funds, how plans are built and who must be registered have all changed.
- 3 October 2024NDIS Act amendments commenceSection 10 lists of NDIS supports and the basis for new framework plans.
- 1 July 2026Mandatory registration for SIL and digital platformsProviders of these supports must be registered with the NDIS Commission.
- 27 August 2026Securing the NDIS Act: first changes commenceTighter unscheduled reassessment criteria and seven-year record keeping for claims.
- 1 October 2026Thriving Kids rollout beginsPhased supports outside the NDIS for some young children.
- From 1 April 2027New framework planning expected to startIntroduced gradually, with a support needs assessment.
- From 1 January 2028New access rules for new applicantsStandardised functional capacity assessment; existing participants reassessed over a transition period.
- 3 October 2024: the first round of NDIS Act amendments commenced, introducing the section 10 lists of NDIS supports and the legal basis for new framework plans.
- 1 July 2026: mandatory registration started for providers of supported independent living and NDIS digital platform services.
- 27 August 2026: parts of the NDIS Amendment (Securing the NDIS for Future Generations) Act 2026 commenced, including tighter criteria for unscheduled plan reassessments and a duty on providers to keep records relating to a claim for seven years (NDIA: Securing the NDIS for future generations).
- 1 October 2026: the phased rollout of Thriving Kids began, offering supports outside the NDIS for some young children with developmental delay or autism with low to moderate support needs.
- From 1 April 2027: new framework planning is expected to start gradually, after the government delayed it following consultation (Department of Health, Disability and Ageing).
- From 1 January 2028: new access rules are due to apply to new applicants, based on a standardised assessment of functional capacity rather than diagnosis lists, with existing participants reassessed over a transition period.
Dates for later stages can move. Check the NDIA and department pages above before you rely on them.
What NDIS providers need to know
If you deliver NDIS supports, the scheme shapes almost every part of your operations: who you can serve, what you can charge, what you must record and who you answer to.
- Registration decides your market. Only registered providers can support NDIA-managed participants or deliver supports that require registration, such as SIL, SDA, specialist behaviour support and plan management.
- The Code of Conduct applies to everyone. Registered and unregistered providers and their workers must follow the NDIS Code of Conduct, and the NDIS Commission can act on breaches.
- Price limits apply. Claims must follow the NDIS pricing arrangements and price limits, and the support must be in the participant's plan.
- Agreements and records matter. A clear service agreement, accurate progress notes and claim records protect both the participant and you, especially with the new seven-year record-keeping duty for claims made from 27 August 2026.
Common misunderstandings about the NDIS
- "Everyone with a disability gets the NDIS." No. People must meet the access requirements, and many people with disability are supported by mainstream and community services instead.
- "The NDIS is means-tested." It isn't. Funding is based on disability support needs, not income or assets.
- "The NDIS pays my rent and bills." Ordinary living costs are not NDIS supports, even for people living in supported accommodation.
- "A diagnosis guarantees funding." Plans are based on functional support needs and the reasonable and necessary criteria, not diagnosis alone.
- "The NDIS and the NDIA are the same thing." The NDIS is the scheme; the NDIA is the agency that runs it.
- "You lose the NDIS at 65." You must be under 65 to apply, but participants who joined earlier can stay in the scheme after they turn 65.
Example
Illustrative example (fictional). Priya, 34, has multiple sclerosis that has progressively affected her mobility and fatigue. Her neurologist and occupational therapist provide reports describing how her condition affects self-care and moving around, and Priya submits an access request through her local NDIS office.
The NDIA decides Priya meets the disability requirements. At her planning meeting she talks about wanting to keep working three days a week and to stay in her own apartment. Her plan includes Core funding for a support worker on weekday mornings, Capacity Building funding for occupational therapy, and Capital funding for a power-assisted wheelchair after an assessment.
Priya chooses plan management so she can use a small unregistered provider her friend recommended as well as a registered therapy practice. Her rent, groceries and work clothes stay her own costs. Eighteen months later her condition changes significantly, so she asks the NDIA for a plan reassessment with updated therapy reports.
Frequently asked questions
What does NDIS stand for?
NDIS stands for National Disability Insurance Scheme. It is Australia's national scheme that funds reasonable and necessary supports for people with permanent and significant disability, run by the National Disability Insurance Agency (NDIA).
What is the NDIS and how does it work?
People who meet the access requirements become participants and get an individual plan with funding for disability-related supports. They choose providers and how the funding is managed (NDIA-managed, plan-managed or self-managed), and the plan is reassessed over time.
Who is eligible for the NDIS?
You must be under 65 when you apply, live in Australia as a citizen, permanent visa holder or protected Special Category Visa holder, and meet the disability or early intervention requirements. New access rules based on a functional capacity assessment are due to apply to new applicants from 1 January 2028.
Is the NDIS means-tested?
No. NDIS funding is not based on income or assets. It is based on a person's disability support needs and whether each support is reasonable and necessary and is an NDIS support.
What is the difference between the NDIS and the NDIA?
The NDIS is the scheme itself. The NDIA (National Disability Insurance Agency) is the Australian Government agency that runs it: it makes access decisions, builds plans and pays claims. The NDIS Commission separately regulates providers.
Does the NDIS pay for rent or groceries?
No. Day-to-day living costs such as rent, groceries and utilities are listed as supports that are not NDIS supports. The NDIS funds disability-related supports, such as support workers, therapy and assistive technology.
What happens to NDIS participants when they turn 65?
You must be under 65 when you apply, but participants who joined the scheme earlier can remain NDIS participants after they turn 65. They may choose to move to the aged care system instead.
Related terms
- Access requestAn NDIS access request is the application a person makes to the NDIA to become an NDIS participant. The NDIA checks that the person is under 65, meets the residence requirements, and meets the disability or early intervention requirements. If approved, the person becomes a participant and moves on to planning.
- Local Area Coordinator (LAC)A Local Area Coordinator (LAC) is a worker from an NDIA partner organisation who helps people with disability aged 9 to 64 understand and apply for the NDIS, prepare for planning, use their plan and find community and mainstream services. LACs are funded by the NDIA, not a plan, and can't approve funding.
- NDIS Act 2013The National Disability Insurance Scheme Act 2013 (NDIS Act) is the Commonwealth law that creates the NDIS. It sets who can become a participant, how reasonable and necessary supports are funded, what counts as an NDIS support, and how providers are regulated, and it establishes the NDIA and the NDIS Commission.
- NDIS Quality and Safeguards CommissionThe NDIS Quality and Safeguards Commission (NDIS Commission) is the independent national regulator of NDIS providers and workers. It registers providers, enforces the Code of Conduct and Practice Standards, handles complaints and reportable incidents, and oversees restrictive practices. It does not fund supports.
- NDIS participantAn NDIS participant is a person with disability who has been accepted into the National Disability Insurance Scheme because they meet the age, residence and disability or early intervention requirements. Participants receive an NDIS plan, choose how their funding is managed and choose their own providers.
- NDIS planAn NDIS plan is the document the NDIA approves with a participant that sets out their goals and the funding the NDIS will provide for disability supports. It splits the funding into support budgets, says how it is managed and released in funding periods, and says when the plan will be reassessed.
- NDIS supportsNDIS supports are the supports NDIS funding can legally pay for, as defined by section 10 of the NDIS Act and its lists. Since 3 October 2024, funding can only be spent on items on the 'NDIS supports' list and not on the 'not NDIS supports' list, unless the NDIA approves a replacement support.
- National Disability Insurance Agency (NDIA)The National Disability Insurance Agency (NDIA) is the Australian Government agency that runs the National Disability Insurance Scheme. It decides who can join, approves participants' plans, sets price limits and pays for supports. It is separate from the NDIS Commission, which regulates providers.
- New framework planA new framework plan is the type of NDIS plan introduced by the 2024 NDIS Act amendments. The NDIA works out a reasonable and necessary budget from a standard support needs assessment and budget method rules, made up mostly of flexible funding plus stated supports. The transition is due to start on 1 April 2027.
- Reasonable and necessaryReasonable and necessary is the legal test in section 34 of the NDIS Act that the NDIA uses to decide which supports to fund in a participant's plan. A support must meet every criterion, including helping with goals, value for money, being effective and beneficial, and being most appropriately funded by the NDIS.
- Thriving KidsThriving Kids is a government program, outside the NDIS, for children aged 8 and under with developmental delay and/or autism who have low to moderate support needs, and their families. It began rolling out on 1 October 2026 and NDIS access for children does not change before 1 January 2028.
Go deeper
Sources
- legislation.gov.au/C2013A00020/latest/text
- ourguidelines.ndis.gov.au/home/becoming-participant/applying-ndis
- ndis.gov.au/about-us/history-ndis
- ndis.gov.au/providers/becoming-ndis-provider/how-register/role-ndis-quality-and-safeguards-commission
- ndis.gov.au/news/10428-support-lists-boost-clarity-ndis-participants-and-providers
- ndis.gov.au/ndis-laws/securing-ndis-future-generations
- health.gov.au/news/have-your-say-on-new-framework-planning-and-ndis-support-rules
- ndis.gov.au/participants/changing-your-plan/decision-reviews/how-request-review-decision
General information, not legal, clinical or financial advice. NDIS rules change — check the official source before you act.
Suppora editorial team
NDIS operations and compliance writers
The Suppora editorial team writes practical guides for NDIS providers, checked against the NDIS Commission, NDIA and Fair Work sources cited on each page.
- NDIS Practice Standards
- NDIS pricing and claiming
- SCHADS Award
- Incident management
- Supported Independent Living