The National Disability Insurance Scheme (NDIS) is implementing significant reforms through new framework planning arrangements, with changes to the National Disability Insurance Scheme Act 2013 (Cth) designed to make the process fairer, more transparent, sustainable and person-centred. The new planning approach will commence from mid-2026 for participants over 16 years of age, with a phased introduction over a five-year transition period.
These changes represent a fundamental shift from the current planning process to a structured, four-step assessment framework that uses standardised tools and a transparent budget method. For NDIS providers, understanding these reforms is critical for maintaining service continuity, supporting participants through transition and adapting business operations to meet the requirements of the new planning environment. This article outlines the key elements of the consultation draft and practical steps providers should take to prepare in relation to five critical areas:
The new framework planning approach responds to findings from the Independent Review into the NDIS that identified the need to improve the planning process and focus on a person's disability support needs, rather than diagnosis or functional impairment. The new planning system aims to promote a person-centred and strengths-based approach to assessment, create fairer and more consistent budgets, reduce the need for expensive reports and result in simpler plans that are more flexible.
These objectives signal a shift in how participant needs are assessed and how funding is allocated. Providers should recognise that the new system aims to standardise assessment processes while maintaining flexibility in how supports are delivered. The consultation draft emphasises transparency in budget calculations and consistency in decision-making, which may affect how providers engage with participants during plan development and how they document service delivery against plan goals.
The new framework planning process consists of four distinct steps that will apply to all participants during the transition period. The process begins when the NDIA contacts a participant and tells them they will receive a new framework plan. Participants will continue using their current NDIS plan until they receive a new plan under the framework.
The four steps are:
Preparing for a support needs assessment
The support needs assessment
Building a plan and plan discussion
Starting to use a plan
In Step 1, participants receive a Notice of Impairments and a Notice to have a new framework plan. The Notice of Impairments has been provided to new participants since 1 January 2025 and will be issued to existing participants as part of their transition to new framework planning.
In Step 2, an NDIA assessor conducts a comprehensive support needs assessment with the participant. The assessment uses the Instrument for the Classification and Assessment of Support Needs (I-CAN version 6) and also includes a personal and environmental circumstances questionnaire and targeted assessment processes for specific needs such as assistive technology, home and vehicle modifications and disability-related health supports. Different assessment tools will be used for children and adults.
The NDIA assessor documents the outcomes in a support needs assessment report, which is provided to both the NDIA delegate and the participant. If a participant has concerns about the accuracy of their assessment report, the NDIA delegate will work with them to determine whether a replacement assessment is needed. Providers should prepare for participants to potentially share these reports during service planning conversations, as they will contain detailed information about assessed disability support needs and may include recommendations from allied health professionals.
Step 3 of the process involves building a plan using information from the support needs assessment report. The consultation draft proposes a transparent budget method that will be set out in technical rules covering the steps the NDIA applies when determining total funding amounts and the calculations used, including adjustments for factors such as remoteness or compensation payments.
Each participant's budget will consist of two components: flexible funding and stated supports funding.
Flexible funding can be used for a wide range of NDIS supports and will represent the majority of participant supports. Examples include assistive technology (general), consumable products, disability-related nursing supports, employment supports, general allied health supports, in-home and community supports, interpreting and translation supports, physical and allied health related supports, social allied health supports and specialist driver training.
Stated supports funding can only be spent on the specific supports identified in the participant's plan. Examples include assistance animals, assistive technology assets, behaviour support, home modifications, medium term accommodation, periodic private vehicle transfer, plan management, residential aged care, short term respite, specialist disability accommodation and support coordination. Some stated supports may require external quotes before funding is released for purchase.
The NDIA may also set requirements for receiving a service or buying supports. These conditions mean participants must meet certain requirements to access funds, such as obtaining a quote before a service starts, ensuring support is provided by appropriately qualified professionals for home modifications or specialist mobility equipment or following specified assessment processes. Providers should prepare for clear documentation requirements and understand that approval processes may be necessary before delivering certain supports.
Funding periods will continue to apply to flexible and stated budgets as they do currently, with some exceptions for one-off purchases. The NDIA delegate will use information and preferences from the support needs assessment to determine plan duration, plan management arrangements, requirements for how funding can be used and any limits on flexible funding spending before checking and approving the plan.
Once a participant has transitioned to the new scheme and begins to use their budget, regular check-ins may be scheduled to support them as they transition to their new plan. Providers should be prepared to engage with participants who may need additional guidance on how to use their funding under the new structure and navigate the requirements and restrictions that apply to their budget.
The consultation draft includes provisions for plan variations that allow changes without requiring a complete new assessment. Circumstances where plan variations may occur include providing emergency or crisis funding due to significant changes in support needs for a short period, adding funding for repairs, replacement or maintenance of assistive technology, adjusting employment supports due to minor changes in participant work hours and changes in aged care needs for younger people in residential aged care.
Participants have important review rights under the new framework. They can seek an internal NDIA review or external review by the Administrative Review Tribunal of all aspects of the statement of supports in their plan, including whether their reasonable and necessary budget was developed in accordance with relevant rules and decisions about plan management and funding periods. As the needs assessment is the basis for determining the reasonable and necessary budget, participants can request a replacement needs assessment as part of their review request. Providers should be aware that participants may exercise these review rights and that changes to plans may occur through this process.
The new planning approach will commence from mid-2026 for some participants over the age of 16, with a phased introduction over a five-year transition period. Participants who will be part of the initial rollout will be informed well in advance and will receive support from the NDIA.
The Department has indicated that more details will be provided by the NDIA in the coming months. The consultation process is currently open, with the Department seeking feedback from NDIS participants and the disability community on how the proposed rules will work in practice. The Department is committed to working with people with disability over this period to ensure the changes are implemented effectively and will continue to share information publicly and engage with the disability sector to hear feedback and test ideas.
Providers should begin preparing for the upcoming changes now by:
The Department is working with the NDIA to develop operational guidelines that will provide more detail on how the NDIS works under the new framework. Feedback from the consultation process will assist in developing both the rules and the operational guidelines. Providers can access current information through the NDIS website and the Department's consultation portal.
The new framework planning system represents a significant reform of how NDIS plans are developed and managed. The shift to a standardised assessment process, a transparent budget method and a two-part funding structure with flexible funding and stated supports will fundamentally change the planning experience for participants and providers.
By engaging with the consultation draft now, understanding the four-step process and preparing systems and staff for the changes, providers can position their organisations to support participants effectively through the transition period and operate successfully under the new framework. The phased rollout beginning mid-2026 provides time for preparation but proactive engagement with the consultation materials and emerging operational guidance will be essential for ensuring business continuity and maintaining high-quality support for participants during this period of significant change.
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Nicole Chen
Nick Edwards
Nadia Kamal