What Do the New NDIS Laws Mean for Participants and Applicants?
On 19 August 2026, the Australian Parliament passed major new NDIS legislation that will change how people access the Scheme, how plans are reviewed, how funding is used and how some supports are delivered.
If you already have an NDIS plan, the first thing to know is: Your plan is not suddenly changing today.
The changes will be introduced in stages, starting after the new legislation formally becomes law and continuing through to 2028.
So what should participants, families and people thinking about applying for the NDIS actually pay attention to?
1. Asking for an Early Plan Reassessment Will Become More Structured
One of the first changes affects participants who want their plan reassessed before their scheduled reassessment date.
Participants will still be able to request an early reassessment where there has been a significant and ongoing change, such as a change to:
functional capacity or support needs
living arrangements
education or work
informal supports, such as help provided by family or carers.
The NDIA will have up to 90 days to decide whether to reassess the plan.
Short-term and urgent changes can still be dealt with through plan variations, so an early full reassessment will not be the only option.
What does this mean for participants?
The important words here are “significant and ongoing.” If your circumstances change, good evidence explaining what has changed and why your current plan is no longer suitable will become even more important.
2. Keep Your NDIS Records
Another early change is easy to overlook, but participants should take it seriously. Participants will need to keep relevant records about their NDIS supports and payments for 3 years. Nominees will need to keep records for 5 years and providers for 7 years.
For participants, the practical message is simple:
Don't throw away invoices, receipts and other important records showing how your NDIS funding was used.
The NDIA will have stronger powers to request information, and money may need to be repaid if the required records cannot be provided to show that NDIS funding was used correctly.
3. Some Support Budgets Will Start Changing from October 2026
From October 2026, budgets for social, civic and community participation and capacity building daily activities will progressively be reset as plans are reassessed or renewed.
For participants using these supports, this is obviously an area to watch closely.
However, we would be careful about interpreting “reset” as automatically meaning “your funding will be cut.” The NDIA has not said that every participant's budget will decrease.
In fact, the NDIA specifically notes that plans can normally go up or down as people's needs change
4. Plan Renewals Are Changing — and Unspent Funding Won't Carry Over
From February 2027, when a plan reaches reassessment, the NDIA may either reassess it or create a new plan with the same supports.
This new process will be called a plan renewal and will replace what many participants currently know as a plan continuation.
One important change is:
Unspent funding from the previous plan will not carry over into the renewed plan.
If a participant has significant unused funding because they couldn't find a provider, didn't understand their plan or had difficulty putting supports in place, it is better to identify that problem early rather than discover it near the end of the plan.
5. The Rules Around “Reasonable and Necessary” Supports Will Change
From February 2027, new criteria will apply when the NDIA decides what reasonable and necessary supports should be included in new participants' plans.
There will also be clearer guidance about what parents are ordinarily expected to provide for a child, including areas such as supervision, personal care, transport, emotional support and behavioural support. Importantly, this does not include the additional support a child requires because of their disability compared with another child of a similar age without disability.
For families applying for the NDIS, that distinction will matter. It will become increasingly important for reports to explain how their support needs differ from those normally expected for a child of the same age.
These new criteria will also progressively apply to existing participants when their plans are reassessed.
6. Bigger Changes to NDIS Applications Won't Start Until 2028
The NDIS access changes will begin from January 2028 for new applicants, with existing participants reassessed progressively over three years.
The future process will include:
a new standardised, evidence-based assessment of functional capacity
a more consistent approach to whether an impairment is permanent or can be alleviated or treated
more consistent consideration of other compensation schemes.
This points to an even stronger focus on functional capacity — in plain English, what a person can and cannot do in everyday life because of their disability.
For applicants, that reinforces something we already see in practice at Joystep: A diagnosis alone does not tell the whole story. Good supporting evidence needs to explain the practical impact of disability on areas such as mobility, communication, self-care, learning, social interaction and managing everyday activities.
7. Plan Management and Support Coordination Will Also Change
Two later changes are particularly relevant for existing participants.
From October 2027, a trusted panel of Plan Management providers will be established, with participants supported to transition to a provider on the panel over six months.
Then, from July 2028, a new commissioned Support Coordination and connection function will be introduced.
There is still a lot we don't know about exactly how these arrangements will work in practice.
There is still considerable time before these changes begin, and further consultation and implementation details are expected.
What Should You Do Now?
For most participants, there is no need to panic or suddenly change how you're using your NDIS plan.
The NDIA has been very clear that participants can continue using their current plans and supports as usual.
For applicants, the biggest eligibility changes are still some time away.
For existing participants, some changes will arrive much sooner, but they will be introduced progressively rather than all at once.
We will continue following the implementation of the new NDIS laws and explaining the changes that have a practical impact on participants and families.
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