NDIS support budgets change from 1 October 2026: community participation and daily living skills

This is the most significant change to participant budgets since the scheme began, and it lands directly on the supports most of our participants use every week: day programs, community access, social groups, and the capacity-building therapies funded under Improved Daily Living.

What is changing

The changes were announced by the Department of Health, Disability and Ageing and the NDIA in September 2026 as part of the "Securing the NDIS for Future Generations" package. They apply to two budget categories:

Budget category	What it usually funds	Change
Social, Economic and Community Participation (Core)	Support workers for community access, group programs, day programs, social and recreational activities	Reduced by approximately 50%
Improved Daily Living Skills (Capacity Building)	Therapy such as occupational therapy, speech pathology, psychology, skill development programs	Reduced by approximately 10%

The reductions are applied when a plan is created or reassessed from 1 October 2026, or renewed from 1 February 2027. If your current plan runs to, say, June 2027, your funding does not change until that renewal.

How renewals will work

1. The NDIA sends a letter or my NDIS portal message 60 days before your renewal date.
2. Your new plan is issued with the adjusted budgets and, like all plans since May 2025, is split into funding periods (usually three months).
3. From 1 February 2027, any money unspent at renewal is not carried forward.
4. If you have high support needs, you or your nominee can request a variation so that supports such as 24-hour care are maintained.

Why the government says it is doing this

The 2026-27 Budget projected NDIS spending of $56.1 billion in 2026-27 and committed to slowing growth to around 5 to 6 per cent a year. Budget resets, together with standardised functional assessments and commissioned plan management and support coordination, are the main levers. Minister Butler has argued the scheme was never designed to be the only source of community support for people with disability, and that Foundational Supports and Thriving Kids will pick up part of the load.

What the sector is saying

A joint statement from academics and advocates, coordinated by Inclusion Australia, warned that cuts of this size to community participation "will cause preventable harm" for people with intellectual disability who rely on day programs for routine, friendship and safety. Some providers have already responded: Carers ACT announced in July that it would close its Hub day program and support coordination service on 1 October 2026. We expect more pressure on group programs across Sydney in 2027.

Five things to do before your renewal

• Diarise your plan end date and watch for the 60-day letter in the my NDIS app or portal.
• Spend according to plan. Underspending has often been read as "not needed". From February 2027 it is also lost at renewal.
• Collect evidence. Ask your therapists for progress reports that describe function, risk and what happens without support.
• List your 24-hour or safety-critical supports and talk to your support coordinator about a variation request early.
• Explore mainstream and community options now, including local council programs, libraries, sport clubs and Foundational Supports as they come online.