Improved Daily Living Skills Funding Is Being Reduced — But What Does It Actually Cover?

From 1 October 2026, some NDIS participants will start to see reductions to their Improved Daily Living Skills budget when a new plan is approved or their plan is reassessed.

But what exactly is Improved Daily Living Skills funding?

Many people see the words “Daily Living” and assume this funding is for someone to help with everyday tasks like cooking, cleaning or personal care.

But that’s not actually what this funding is for.

That’s why today, Joystep is breaking down what Improved Daily Living Skills really means — and what you can actually use this funding for.

Improved Daily Living is a Capacity Building support. In simple terms, it is funding for supports that help you build or maintain your skills and independence, rather than simply having someone do an everyday task for you. It can include assessments, training and therapies.

What Can Improved Daily Living Funding Pay For?

Therapy is one of the most common ways participants use Improved Daily Living funding.

Therapy supports funded through Improved Daily Living can include a wide range of allied health services. Some common examples are:

• Occupational Therapy (OT) – helping with everyday skills, routines, personal care or functioning more independently at home.

• Speech Pathology – supporting disability-related communication and social communication.

• Physiotherapy – helping improve or maintain movement, mobility and physical function.

• Psychology or counselling – where it relates to disability-related functioning and meets NDIS funding criteria.

• Exercise Physiology or Dietetics – where the support is related to your disability and meets NDIS requirements.

  
  

Other recognised therapy supports can include social work, developmental education, audiology, podiatry and rehabilitation or vocational counselling.

But having an Improved Daily Living budget doesn’t mean you can automatically use it for any therapy you choose. The support still needs to meet NDIS funding criteria, relate to your disability-related needs and, for therapy supports, be evidence-based with appropriate functional outcomes.

It's Not Just Therapy

Improved Daily Living is often associated with allied health, but therapy is only part of this funding.

It can also include training and skill development to help you become more independent in everyday life. For example, depending on your plan and support needs, this may include:

• learning everyday life skills at home

• learning to use public transport more independently

• support with decision-making, daily planning or budgeting

• training for parents or carers in disability-related support needs.

These supports may be delivered by different professionals or appropriately skilled providers, depending on the type of training or skill being developed.

The important point is that this is capacity building — the purpose is to develop or maintain skills and independence, rather than simply provide day-to-day assistance.

“Improved” Doesn't Always Mean Getting Better

This is another part of the name that can be misleading.

For someone with a permanent or progressive disability, therapy may not always be about learning new abilities. Sometimes the goal is to maintain the abilities you already have or slow down the loss of function.

For example, physiotherapy may help someone maintain their movement, while speech pathology may help maintain communication skills.

The NDIS specifically recognises therapy that helps participants improve or maintain their skills and independence.

What Is Changing from October 2026?

From 1 October 2026, the NDIS will begin reducing budgets for Improved Daily Living Skills when new plans are approved or plans are reassessed. Plan renewals will begin to be affected from 1 February 2027, with the changes rolling out over 12 months. This does not mean every support within Improved Daily Living will be reduced. The NDIS has confirmed that some groups of supports will not be affected.

If your budget changes, understanding what each support is helping you achieve in everyday life will become even more important.

If you need help understanding your NDIS plan or how your funding can be used, Joystep is here to help.

Related Services: Plan Application and Review