In August 2024, Australia’s Parliament passed landmark legislation that has reshaped how the NDIS operates. Known as the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024, the changes came into effect on 3 October 2024. If you’re a participant, carer, or support worker, understanding these reforms is essential.
Why Were These Changes Made?
The Australian Government introduced this legislation following the independent NDIS Review, which found that the scheme had drifted from its original purpose. The review identified inconsistencies in how plans were approved, confusion about what the scheme funds, and sustainability concerns due to rapid cost growth. The reforms aim to make the NDIS fairer, more transparent, and focused on its original mission: empowering people with disability to live the life they choose.
Key Changes From 3 October 2024
Several significant changes took effect immediately:
- A new, clearly defined list of what NDIS funding can and cannot cover
- New plan structures showing a total budget amount rather than individual line items
- Updated access decision letters with more detailed explanations for participants
- New rules giving the NDIA the ability to change how your plan is managed if funding is not used appropriately
- A two-year time limit on submitting claims for services provided
What This Means for Participants With Psychosocial Disability
If you are living with a psychosocial disability and are an NDIS participant, the most important change to be aware of is the new definition of NDIS supports. This new definition provides clearer guidance about what the scheme funds. Supports that were previously in a grey area may now be clearly categorised.
Existing participants whose plans were approved before 3 October 2024 can continue to access supports identified as reasonable and necessary in their current plan, for the duration of that plan.
At Azalea Care, our support coordinators and recovery coaches are fully across these legislative changes. If you are unsure how they affect your plan, get in touch with our team today.
What Comes Next?
Many of the finer details of the reforms are still being co-designed with the disability community, including how exceptions to the support lists will work. Further tranches of legislation, including the Integrity and Safeguarding Bill introduced in November 2025, continue to refine the scheme. We will keep this blog updated as new information becomes available.
