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The NDIA has kicked off its five-year evaluation of the latest NDIS reforms with the release of its first summary report. This first report focuses on early implementation of the new ‘in’ and ‘out’ NDIS supports lists and changes to plan funding periods. This is pretty good timing, given the NDIS supports lists are currently under review. The report offers an unusually candid view of how the changes are being received, highlighting the confusion and anxiety they have generated.
Evaluation focus
First a quick recap, the summary report focuses on early observations on the implementation of:
- NDIS support lists: Changes to s10 of the NDIS Act intended to give participants clearer guidance on what they can and can’t use their NDIS funding for. NDIS supports lists now outline which supports are considered NDIS supports and which are not.
- Funding periods and components: Changes to s33 of the NDIS Act are designed to help participants manage their funding and reduce the risk of overspending or running out of funds early. Under the new rules, all new plans approved from 19 May 2025 must include a total funding amount, with the funding broken down into specific groups of supports, each with its own funding component. Funding is then distributed through funding periods across the plan’s duration instead of a lump sum.
What has the evaluation found?
Increased anxiety and uncertainty for NDIS participants.
Participant anxiety around the NDIS reforms was already high, and the introduction of the NDIS supports list added to this. Concerns stemmed from the short consultation period, unmet expectations, fears of future support cuts (like art or music therapy) and perceived disconnect between the promised reform vision and the actual changes being implemented.
Confusion was high, especially around the NDIS supports lists. Some supports weren’t clearly marked as ‘in’ or ‘out’, and social media misinformation, along with a flood of updates from the Agency only added to the uncertainty. On top of that, staff at the National Call Centre (NCC) didn’t have enough information to answer people’s questions confidently.
One example highlighted was the case where food, groceries and transport were clearly stated on the ‘out’ list, yet short term accommodation (STA) includes all of these components. Providers reported not knowing whether they needed to cancel their bookings that coming weekend.
Increase in participant and stakeholder interaction with the Agency.
Following 3 October, there was a sharp rise in communication from the NDIA and increased traffic to its website, with over half of NCC calls relating to the new NDIS supports lists. Despite this, complaints didn’t increase overall. However, much of the guidance was still being developed, and many participants and providers struggled to find clear, specific information about their particular situation.
Gaps in NDIA workforce training
Although the NDIA began staff training in June 2024, the rollout quickly revealed gaps in staff knowledge and confidence, particularly in handling complex or nuanced situations. The Agency also struggled to keep up with the high demand from frontline staff for further guidance and support.
Low levels of non-compliant supports
Limited available data suggests non-compliant claims have been low so far, with only $1.3 million in self-managed claims flagged between 3 October and 12 December 2024. The NDIA plans to review these more closely in 2025.
Low uptake of replacement supports
When the NDIS supports lists came in, the NDIA introduced a mechanism for replacement supports. A replacement support is an item from the ‘out’ list that can be funded by the NDIS in place of an existing support in a participant’s plan, but only in specific circumstances. Replacement supports are only available for standard commercially available household items, smart watches, tablets, smart phones or apps for accessibility or communication.
As at 10 January 2025, there had only been 611 replacement support requests. Of these, 111 had been approved and 380 still had a decision pending. About 20% of requests were either declined or deemed invalid. Early feedback from Practice Leads and NDIA staff suggests there has been confusion about when and how to request a replacement support and what evidence is needed. Advice from planners and providers has also been inconsistent. The NDIA now has a dedicated working group to try and strengthen this process and guidance.
More detailed information and clarity required
There has been a strong demand from both participants and the sector for clearer, more detailed information from the Agency. Since the changes took effect on 3 October, around 50 guidance documents and FAQs have been published, although many weren’t released until late 2024 with some matters still unresolved at the end of the year.
Common areas of confusion included supports that overlap with other service systems (like hospital care, palliative care or early childhood services), items that appear to be listed as both ‘in’ and ‘out’ (such as tablets used for communication) and requirements that therapeutic supports be evidence-based. There were calls for more clarity on communication devices, sensory items, assistance animals, home modifications and household services for children under 18 as well as the status of therapies not on either list (such as chiropractic services). The NDIA says additional policy work is underway to better define what qualifies as evidence-based therapy and which therapies it will and won’t fund.
The NDIA was not as well prepared as it could’ve been
The NDIS supports lists were finalised on 2 October 2024 and came into effect the next day, leaving limited time for the sector to fully understand them. The fast pace of change made it difficult for the NDIA to coordinate and communicate effectively across teams. Solutions were often developed quickly but not all staff were immediately aware of them, resulting in duplicated work. Frontline NDIA staff often didn’t have enough information to confidently answer questions, while Practice Leads struggled to provide the necessary support when they didn’t receive information before it was made public.
Despite months of preparation, Agency staff agreed that implementation was more challenging than expected. As people tried to apply the changes to real-life situations, demand for clear, case-specific information quickly outpaced what was available. As one Agency staff remarked:
“If we have one day to train 1500 people on a piece of legislation, we’ll get a certain outcome. We need to build greater time into our changes to enable people to know something well.”
Impact on participant supports and plan management
The Agency says it is still unclear how much participants have changed their supports in response to the NDIS supports lists, but early signs suggest some providers and plan managers are being cautious.
It’s too early to assess the full impact of funding periods and components as these have really only come into play for new plans from May 19 (after this report was compiled).
Opportunities for improvement
The Agency has reflected on the need for better preparation including clear communication strategies, guidance and resources in advance to support rapid response. While the Agency says its strong relationships with the disability community helped during rollout, it recognised that the pace of change in the first 3 months may not be sustainable for staff, participants, stakeholders and the disability community.
The NDIA recognised that there are important considerations for the next tranche of reform and opportunities to apply lessons from the early rollout. No doubt the sector will be eagerly waiting to see if these improvements eventuate.
This evaluation will be iterative and will continue to gather more evidence over time. The next stage will focus more on the experience of participants and further examine implementation.
What’s next?
The next evaluation summary report is due to be delivered in June 2025, which is a bit confusing because it’s now July – but that’s NDIS for you. The next report will focus on:
- Immediate impacts on the Scheme from the changes, including changes in claim patterns, compliance, utilisation of replacement supports, and feedback and complaints
- Emerging impacts on Scheme integrity and sustainability
- Identification of areas of risk and opportunities
- Ongoing monitoring of emerging outcomes for Scheme compliance, integrity and sustainability
This evaluation will continue through to December 2025, with further summary reports to be delivered in September and December 2025.
Read the full report, along with more detailed data on the NDIA’s website.
