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From July 2026, the way NDIS budgets are decided will change significantly. These updates form part of the broader reforms to improve fairness, consistency, and long term sustainability across the system.
Under the New NDIS Planning Framework, funding decisions will be guided by structured support needs assessments rather than relying heavily on multiple independent reports. This marks a shift toward clearer and more predictable outcomes for participants and families.
These changes may influence how NDIS budget calculations and funding amounts are determined under the new planning framework.
These changes are being introduced by the National Disability Insurance Scheme following recommendations from the NDIS Review. Official updates and guidance are published directly by the NDIS at https://www.ndis.gov.au
This blog explains how NDIS budgets may be calculated under the new framework, why funding was inconsistent in the past, and what participants can expect moving forward.
Why NDIS Budgets Were Inconsistent Before
One of the most common concerns raised by participants has been the lack of consistency in funding outcomes. People with similar needs often received very different budgets. This happened for several reasons- Planning relied heavily on external reports that varied in quality and detail
- Participants with more resources could afford better documentation
- Decision making was influenced by how information was presented
- There was no single standard way to assess functional support needs
How Standardised Assessments Improve Funding Fairness
Under the new framework, budgets will be informed by structured and consistent assessments that focus on how a person functions in everyday life. Instead of asking participants to prove their needs through multiple reports, planners will rely on standardised assessment outcomes to guide funding decisions. According to official NDIS planning guidance https://www.ndis.gov.au/about-us/operational-guidelines/planning This approach aims to- Reduce variation between similar cases
- Improve transparency in decision making
- Ensure funding aligns with real life support needs
- Create a more predictable planning experience
What Fairer NDIS Funding Really Means
Fairer funding does not mean identical budgets for everyone. It means that people with similar support needs are assessed using the same criteria and considered consistently. Under the New NDIS Planning Framework- Funding is linked to functional needs rather than diagnoses
- Everyday support requirements are prioritised
- Decisions are based on evidence gathered through assessment
- Participants receive clearer explanations for their budgets
What Participants Can Expect During NDIS Plan Reviews
Plan reviews will also become more structured under the new framework. Reviews will focus on whether support needs have changed rather than re-establishing eligibility each time. Participants can expect- Greater clarity around why funding levels change
- Reviews informed by updated assessment information
- Fewer requests for repeated external reports
- More consistent outcomes across planning cycles
How These Changes Support a More Sustainable NDIS
The new funding approach is designed to balance participant needs with long term system sustainability. By improving consistency and reducing unnecessary costs, the NDIS can direct funding where it is most effective. The Australian Government Department of Social Services provides further context on disability reform and funding sustainability at https://www.dss.gov.au/disability-and-carers This ensures the NDIS can continue supporting participants now and into the future.Will the New Framework Automatically Reduce NDIS Budgets?
The purpose of the new framework is not automatic budget reduction. It aims to align funding more accurately with assessed support needs while improving fairness and sustainability. Individual budgets will continue to reflect personal circumstances, goals, and levels of assistance required.How Ambition Health Group Can Support You
At Ambition Health Group, we closely follow NDIS funding reforms and planning updates so our clients are never left guessing. We help participants understand how budgets are determined, prepare for assessments and reviews, and make informed decisions about their supports. If you would like help understanding how the new funding framework may affect your NDIS plan, contact Ambition Health Group today and let our team guide you with clarity and confidence.Frequently Asked Questions About NDIS Funding Under the New NDIS Planning Framework
Q. How will NDIS funding be decided under the New NDIS Planning Framework?
Under the new framework, NDIS funding will be guided by structured support needs assessments that focus on how a person functions in everyday life. This approach is designed to improve consistency and transparency in budget decisions. Official planning guidance is provided by the National Disability Insurance Scheme https://www.ndis.gov.au/about-us/operational-guidelines/planningQ. Why is the NDIS changing how budgets are calculated?
The NDIS Review identified that funding outcomes were often inconsistent and heavily influenced by access to reports rather than actual support needs. The new framework aims to create fairer outcomes and a more sustainable system. NDIS Review information is available here https://www.ndisreview.gov.auQ. Does standardised assessment mean everyone will get the same funding?
No. Standardised assessments do not mean equal funding for all participants. They are designed to ensure people with similar support needs are assessed using the same criteria, leading to more equitable outcomes. Funding will still be tailored to individual circumstances. More information on how plans are developed can be found here https://www.ndis.gov.au/participants/using-your-planQ. Will diagnoses still be considered when funding is decided?
Diagnoses may still provide background context, but funding decisions will place greater emphasis on functional needs and the supports required for daily living. This shift aligns funding more closely with real world participation and independence.Q. Will participants still need external reports to support their funding?
In many cases, reliance on multiple external reports is expected to reduce. However, additional information may still be used where relevant. The intention is to reduce unnecessary costs and repetition while maintaining appropriate evidence based planning. Disability reform information is published by the Department of Social Services https://www.health.gov.au/topics/disability-and-carers/disability-policy-reformsQ. What changes can participants expect during NDIS plan reviews?
Plan reviews under the new framework will focus on changes in support needs rather than re proving eligibility. Reviews are intended to be clearer, more structured, and easier to understand, with funding decisions linked to updated assessment information.Q. Will the new funding framework reduce NDIS budgets?
The purpose of the new framework is not to reduce funding automatically. It aims to align budgets more accurately with support needs, improve fairness across participants, and ensure funding decisions are consistent and transparent.Q. Where can participants get reliable information about NDIS funding changes?
Participants should rely on official NDIS communications and trusted providers who actively follow reform updates. The NDIS website remains the primary source for accurate and up to date information https://www.ndis.gov.au