What to Do When Your NDIS Funding Is Reduced: A Calm, Practical Guide

Getting a lower NDIS plan is really difficult. You’ve been living on the same funding that is now less than what it previously was and frequently with no indication as to why. Try to breathe, if you can.

You’re not alone in this. The trend to reduce plans has become widespread across Australia. As part of the broader NDIS reform introduced by the federal government, the Australian Government has stated that the average plan will reduce by around $5,000 over two years.

This isn’t about you, or anyone with a disability, it is a systematic change. Knowing this won’t restore your funding. There are steps you can take, and people who can help.

For many participants, the underlying goal behind every support category is simply living more independently.

Step 1: Never Make Any Sudden Decision

It is common in the instance of reduced funding to immediately discuss dropping support workers, reducing therapists or cancelling allied health services completely.

Before you change anything, know what the actual situation is.

Check Whether It’s a Funding Period Issue

Since 19 May 2025, the NDIA has been releasing funds in instalments, in most cases every quarter. In these circumstances, the plan may appear smaller as it has been broken into sections and spread out across an entire year, rather than a lump sum the overall plan size hasn’t necessarily changed. Should you believe that there has been a decrease in the NDIS funds available ensure you have logged into your myplace account to review your NDIS plan, particularly the allocated funds.

This figure will give you an indication of the true total funding.

Step 2: Read the Plan Carefully and Note Exactly What Changed

In comparing your last and new plans, pay close attention to every section, specifically writing down amounts under these three categories: Capacity Building; Core Supports; Capital Supports. Do not guesstimate the figures.

• Which category of support has lost funding?

• Did the total actually drop, or did funds shift between categories?

• Does your plan cover 24-hour support, and has that category changed?

As a fascinating note on this, funding for social and community participation is being reduced by 30% across participant plans from 1 July 2026. If your cut falls here, then that’s due to a policy shift and not reflective of your service needs.

Step 3: Understand Why the Funding Was Cut

Knowing why the reduction has happened will help you frame how you address the issue, what evidence you need to gather, and whether going down the path of a plan review is worth pursuing.

A reduction can be due to several factors including assumptions about capacity building. If you’ve been provided access to therapies such as Occupational Therapy or Speech Pathology, then it may be assumed by the National Disability Insurance Agency (NDIA) that you have developed sufficient skills to cope with tasks in everyday life; policy changes.

It is difficult to control some cuts. One example is that community participation funding is being reduced by 30%. Others are changes to early intervention, early childhood supports and foundational supports.

Changed circumstances at reassessment: Your plan might have been modified after a functional capacity assessment if it was determined that your functional capacity had increased.

Lack of evidence on record: This is more common than people think. The NDIA may not have had enough current documentation to warrant your previous level of individualised funding.

Eligibility criteria are also reassessed each time, so your documentation needs to clearly show that your needs still meet them.

What About Kids and Early Intervention?

Some families who have young children with a developmental delay, or who receive early childhood intervention support may experience a reduction that feels particularly bewildering.

This is because the NDIS have been rebuilding their funding for early childhood supports in packages such as Thriving Kids, and the Early Childhood Intervention framework.

Parents report children having their plans reduced, not through a lack of changing need, but by the redirecting of funding towards foundational early supports offered through the mainstream health system.

You Have the Right to Ask Why

An explanation can be requested for a funding reduction from the NDIA. By phone: 1800 800 110. After being told your reason, you’ll have a much better idea of your next steps.

Step 4: Make the Challenge decision

This falls within the broader NDIS Review process, which gives every participant the right to challenge a funding decision.

If your support needs haven’t changed and yet your NDIS funding has been reduced, you have the option of an internal review. Don’t bypass an NDIS internal review.

Stage One: Internal Review

The new plan can be formally reviewed, known as an internal review, within three months of the plan’s receipt. Another NDIA delegate is asked to look at the original decision again.

To start, you need to reach out to your NDIS Planner or the NDIA.

Stage Two: Administrative Review Tribunal

An external and independent review will be available if the internal review does not address the issue: the Administrative Review Tribunal (ART). The NDIA has stated these review rights are not affected by the changes in 2026.

What’s the secret to a successful review?

Evidence. Evidence that is clear, recent and specific.

Vague appeals don’t work. What does:

• New reports from your OT, Physio, Psychologist or GP
• Functional capacity assessments that give specific information about your function
• Documentation showing what you can and cannot do without support
• A clear link between your disability, your support needs and the funding you are requesting

If any of the reports are older than 12 months, ask for new reports before you write your review. Assessments and reports from allied health services relevant to the disability are considered very important by decision makers.

Step 5: Make your limited funds last longer

If you are challenging the cut, or simply accepting it for now, you may have to live on a lower budget for a while. One of your most important levers is how you run your plan.

Consider Switching to Self-Management

The NDIS price caps are not in effect for self-managed people. All plan-managed and agency-managed participants are required to access registered providers, working under the capped provider rate set at $70.23 per hour for standard weekday support in 2025-26.

Self-managed participants have the ability to negotiate lower rates and can employ unregistered support workers that can cost 15% to 30% less. That gap is significant on a reduced plan. It is possible to purchase noticeably more hours with the same core support budget.

Switching to self-management does not require NDIA approval.

Other ways to stretch your budget:

• Prioritise your most essential supports first
• Negotiate rates with the providers you intend to retain
• Seek alternatives from different providers that are cheaper than the price cap of your current provider
• Strategically monitor your expenditure for every funding period so you don’t find yourself short of funds mid-quarter
• Discuss your plan with your Plan Manager or Support Coordinator to work out what can be achieved with the new budget

It is simpler to track your expenses as they happen with the digital payment system via the myplace app. Use it regularly.

Step 6: Help is available you are not alone

This is hardly an easy process to go through, and it shouldn’t be done alone. People exist whose job is to guide you through the whole process whether that involves challenging the decision, or just getting your head around a more restrictive budget.

To appeal against the decision

There are free and independent disability advocates around Australia, including in regional communities where support is harder to access.

Disability advocates can help you understand the NDIA decision, gather your evidence and guide you through the review process. This is free for you, and has a proven positive impact on review outcomes.

An advocate can be found at Disability Advocacy Finder on askizzy.org.au or through disability advocacy services in your state.

What a Support Coordinator can do for you now

If your plan funds Support Coordination, your coordinator can:

• Sit with you and develop a budget plan of what you can afford now that you have a smaller budget
   
• Help you identify which supports are non-negotiable and where you may be able to compromise
   
• Make recommendations on cost reduction from providers without reducing the quality of services
   
• Match you up with providers offering services at a price below the NDIS price cap
   
• Support you when preparing for a review ensuring you have the relevant documents, communicating with allied health and ensuring your file accurately reflects your support needs

If Support Coordination is not being funded in your plan, discuss with your NDIS Planner about having it added back in. If the withdrawal of the support coordinator is causing hardship at the same time as your support budget is being reduced, it’s a reasonable request for the funding to be made available.

For managing the reduced plan

If you are self-managing, you don’t have to handle Plan Management alone. Your Plan Manager, a family member, or a bookkeeper can help you with the administrative side of things. This will reduce the workload considerably.

Self-management increases the number of choices available to you, including lower-cost unregistered support workers, but it does involve some administration, so factor that into your decision.

Why Can Group-Based Supports Save You Money?

Typically, one-on-one support consumes the largest part of your core support budget. If that budget is cut, the cost-saving avenues that come along with group-based supports are worth exploring.

Group services including group homes, shared social activities, and community access programs can provide similar outcomes and skills development at a much lower cost per hour than one-on-one services. A blend of group and individual support can deliver more value while achieving the same or greater results than individual support alone.

Ask your NDIS planner or support coordinator about group options in your area.

If you live in a regional community

In regional Australia, it is sometimes more difficult to find adequate support, as there is a shorter supply of providers, longer wait times, and less choice.

In regional communities, consider a self-management approach, as this offers greater opportunities to access services from local unregistered providers and local people with experience and trust in the area to provide services.

Disability advocacy services are also available in regional areas, providing support either in person or remotely through video or phone. Remember that you have the same right to a review, and the same entitlements as any participant in Australia regardless of location.

Look After Yourself Through This

A funding cut isn’t just a budget exercise, it's inherently stressful and scary because it may impact you, your community and the people you’re currently supporting to live as independently as possible. The anger, frustration or fear you are experiencing is valid. If the news is impacting your mental health, particularly if you are living with a psychosocial or mental health disability, please contact your GP or reach out to somebody that you trust.

The Bottom Line

An NDIS plan that has been reduced is a setback, but not a dead end.

Carefully read the plan. Make sure the total indeed decreased. Find out why. If your needs are unchanged, challenge the decision; you have a right to it, and free advocacy to assist you. Whatever funding you end up with, use it wisely.

Take it one step at a time. Your rights and your options have not vanished.

Managing a reduced plan and want to make every support hour count? Support Network connects you with vetted, experienced support workers across Australia at rates you set directly. Find support workers at supportnetwork.com.au or call 1300 671 931.