The NDIS is Changing: What Providers Need to Know
The NDIS is undergoing significant reform following the 2023-2024 NDIS Review. These changes will affect how providers register, operate, and comply with requirements over the coming years.
This guide explains what's changing, why, and how providers should prepare.
Why Reform is Happening
The NDIS Review, led by Professor Bruce Bonyhady and Lisa Paul, identified significant issues with the current scheme:
Sustainability concerns:
- Scheme costs growing faster than expected
- $35+ billion annual expenditure
- Trajectory unsustainable without changes
Quality and safeguards gaps:
- Inconsistent provider quality
- Gaps in oversight of unregistered providers
- Inadequate protections for vulnerable participants
Complexity problems:
- Overly complicated registration system
- Unclear requirements for providers
- Difficult navigation for participants
Market issues:
- Provider shortages in some areas
- Over-servicing concerns in others
- Inadequate workforce development
Registration Changes: The Big Picture
Current System Problems
The existing binary system (registered vs unregistered) has limitations:
For low-risk services:
- Same requirements as high-risk services
- Expensive and time-consuming
- Deters small providers
For unregistered providers:
- Limited oversight
- No quality assurance
- Participants take all the risk
Result: Only 8% of providers are registered, but they serve 100% of NDIA-managed participants.
The Proposed Solution: Risk-Proportionate Registration
The reform envisions a tiered system where requirements match risk levels.
The Proposed Registration Tiers
Tier 1: Enrolment (Lowest Requirements)
For: Low-risk services and supports
Proposed requirements:
- Basic enrolment process (online)
- Code of Conduct compliance
- Worker screening (for risk-assessed roles)
- No audit requirement
- Lower cost/complexity
Services likely included:
- Community participation
- Transport assistance
- Low-intensity daily activities
- Some household tasks
What this means: Many services that currently don't require registration would require basic enrolment, but with much simpler requirements than current registration.
Tier 2: Registration (Moderate Requirements)
For: Moderate-risk services
Proposed requirements:
- Application process similar to current
- Verification audit
- Core Practice Standards compliance
- Policy requirements
- Periodic renewal
Services likely included:
- Support coordination
- Plan management
- Allied health services
- Assistance with daily life
What this means: Similar to current verification pathway, but clearer about which services fall into this category.
Tier 3: Advanced Registration (Highest Requirements)
For: High-risk services
Proposed requirements:
- Comprehensive application
- Certification audit (including site visit)
- Full Practice Standards compliance
- Additional module requirements
- More frequent oversight
Services included:
- Specialist Disability Accommodation (SDA)
- Supported Independent Living (SIL)
- Specialist behaviour support
- High intensity daily personal activities
- Early childhood supports (some)
What this means: Similar to current certification pathway, with potentially enhanced requirements for highest-risk services.
Confirmed Changes
July 2025: Support Coordination Registration
What's happening: Support coordination becomes a registered-only service from 1 July 2025.
Who's affected:
- Currently unregistered support coordinators
- Anyone planning to start support coordination
What's required:
- Full registration as an NDIS provider
- Verification audit pathway
- Core module compliance
- Ongoing compliance requirements
Timeline to prepare:
- Applications should be lodged by early 2025
- Allow 4-6 months for registration process
- Don't wait until the deadline
Support Coordination Background
Why the change? The NDIS Review found:
- Support coordinators have significant influence over participant plans
- Quality concerns in the unregistered market
- Potential conflicts of interest not adequately managed
- Vulnerable participants need more protection
What Current Unregistered Support Coordinators Should Do
Now:
- Start preparing for registration
- Develop required policies
- Begin worker screening
Early 2025:
- Submit registration application
- Complete audit process
- Receive registration before July 2025
If not registered by July 2025:
- You cannot provide support coordination
- Participants will need to find registered coordinators
- No transition or grace period has been indicated
Expected Changes (2025-2026)
Broader Registration Expansion
Beyond support coordination, expect:
- More services requiring some form of registration/enrolment
- Clearer definition of which tier each service falls into
- Transition arrangements for currently unregistered providers
Risk-Tiered System Implementation
The multi-tier system is expected to roll out progressively:
- Policy development: 2025
- Legislation/rule changes: 2025-2026
- Implementation: 2026+
Enhanced Worker Screening
Expect changes to:
- Who requires screening
- Screening requirements and processes
- Portability between states
- Continuous monitoring
Pricing and Payment Reforms
Changes under consideration:
- Pricing framework updates
- Payment timing improvements
- Price transparency requirements
- Anti-fraud measures
Quality and Safeguards Enhancements
Strengthened Compliance Monitoring
Expect:
- More proactive compliance checks
- Better use of data to identify risks
- Faster response to quality issues
- Enhanced complaint investigation
Improved Incident Management
Changes may include:
- Expanded reportable incident categories
- Better incident trend analysis
- More emphasis on prevention
- Enhanced follow-up requirements
Worker Quality Improvements
Focus on:
- Training requirements
- Competency standards
- Career pathways
- Recognition of skills
What This Means for Different Providers
Currently Registered Providers
Short term: Minimal immediate impact Medium term:
- Watch for changes to your registration groups
- Prepare for potential requirement updates
- Monitor renewal and compliance changes
Currently Unregistered Providers
Short term:
- Support coordinators must register by July 2025
- Monitor announcements for other services
Medium term:
- Many services likely to require enrolment
- Start building compliance foundations now
- Don't wait for mandatory requirements
New Providers
Recommendation:
- Consider registration even if not currently required
- Build compliance systems from the start
- Position for broader registration requirements
How to Prepare for Reform
1. Monitor Official Announcements
Key sources:
- NDIS Commission website
- Department of Social Services
- State/territory disability departments
- Industry associations
What to watch for:
- Legislative changes
- Regulatory updates
- Implementation timelines
- Transition arrangements
2. Build Compliance Foundations Now
Don't wait for requirements to become mandatory:
Governance:
- Document decision-making processes
- Establish quality oversight
- Create accountability structures
Policies:
- Develop key policies aligned to Practice Standards
- Implement them in your practice
- Keep evidence of implementation
Records:
- Establish good record-keeping
- Document service delivery
- Maintain incident and complaint records
Training:
- Train staff on quality and safety
- Document training completed
- Build compliance culture
3. Consider Early Registration
Benefits of registering before it's mandatory:
- Beat the rush (when requirements expand, everyone applies at once)
- Access full participant market now
- Build experience with compliance requirements
- Demonstrate quality to participants and referrers
4. Plan for Costs
Registration and ongoing compliance has costs:
- Application and audit fees
- Insurance requirements
- Ongoing compliance activities
- System and process investments
Budget for these now rather than being caught unprepared.
Timeline Overview
| Date | What's Happening |
|---|---|
| Now | Prepare for changes, monitor announcements |
| Early 2025 | Support coordination registration applications should be lodged |
| July 2025 | Support coordination registration mandatory |
| 2025-2026 | Broader registration changes expected to be announced |
| 2026+ | Risk-tiered system implementation likely |
Key Takeaways
For All Providers
- Change is coming - The current system is evolving
- Prepare now - Building compliance foundations takes time
- Monitor announcements - Requirements will be clarified progressively
- Don't panic - Changes are aimed at improvement, not punishment
For Support Coordinators
- July 2025 deadline is real - Don't wait
- Start registration now - Applications take 4-6 months
- No exceptions expected - Plan to be registered
For Currently Unregistered Providers
- Registration likely expanding - Prepare for eventual requirements
- Consider registering now - Beat the rush
- Build compliance anyway - Good practice regardless of requirements
The Positive View
While change can feel threatening, these reforms aim to:
- Improve participant outcomes
- Create fairer competition among providers
- Reduce complexity for straightforward services
- Better protect vulnerable people
- Make the scheme more sustainable
Providers who embrace quality and compliance will be well-positioned regardless of specific changes.
Resources
- NDIS Review Final Report (available online)
- NDIS Commission website
- Department of Social Services NDIS pages
- Your state/territory disability department
- Industry associations (NDS, ACSA, etc.)
Stay informed, prepare proactively, and remember: quality providers have nothing to fear from quality-focused reform.
