If you’re an NDIS provider or participant, staying updated with the annual pricing changes is a must. The 2025–2026 NDIS Pricing Arrangements and Price Limits (PAPL) have been released, and there are some major updates you should know about. These changes affect support worker rates, therapy pricing, and the way providers can claim travel time and plan management services.
Let’s break down what’s new—and what it means for your business.
Therapy Rates Are Being Realigned
One of the most significant shifts this year is the adjustment of therapy prices to better reflect market trends. The NDIA reviewed data from Medicare and private health insurers and found that some NDIS rates were much higher than necessary.
Here are some key updates:
- Physiotherapy is now capped at $183.99/hour, a $10 reduction.
- Dietetics and podiatry also dropped by $5/hour, down to $188.99.
- Psychology actually saw a price increase—now sitting at $232.99/hour—to improve access and affordability.
This pricing realignment is all about creating long-term sustainability, ensuring participants still receive quality support without inflating costs across the system.
National Price Consistency for Allied Health
Gone are the days of region-based therapy pricing. In a move toward fairness and transparency, the NDIA has removed regional loadings for certain supports like physiotherapy and psychology. This means providers in rural or metro areas will now be paid the same for delivering the same service.
The immediate concern: While this will simplify the system, some providers in high-cost regions may find it challenging to absorb the difference.
Support Worker Rates Are Increasing
Good news for support workers: their pay rates are increasing by 3.95% in line with the Fair Work Commission’s minimum wage review. This change is reflected in the new NDIS Disability Support Worker Cost Model, and the updated hourly rates will apply from July 1, 2025.
This ensures that providers can continue to offer fair wages and retain skilled workers, something that’s vital for participant continuity and quality of care.
What’s Changing for Plan Managers?l
Plan management has also had a large shake-up:
- The one-time setup fee has been removed.
- Remote loadings for plan management are no longer applicable.
- The monthly service fee of $104.45 has remained the same.
The immediate concerns: This shift represents a significant challenge for the plan management sector. With the removal of establishment fees and no adjustment to the monthly rate, the financial sustainability of many services may be at risk. For participants and carers, this could mean reduced service levels, as some plan managers may be unable to maintain their current level of support under the new pricing model.
What This Means for Other Service Providers:
With reduced funding and increased pressure on capacity, plan managers may no longer be in a position to provide general NDIS guidance or respond to questions outside their financial administration role. You might notice a shift in expectations—where previously plan managers may have offered broader support, they will now likely redirect queries about legislation, eligibility, or policy to the NDIS call centre or relevant professionals.
Travel Claims Tightened for Therapists
Travel time is now more restricted for allied health supports. Providers can only claim up to 50% of the 10-minute increment price limit for travel, and it must be calculated on a pro-rata basis.
The immediate concerns: This change may impact those working in mobile or outreach settings and could require some operational restructuring to keep sessions efficient and profitable.
What About “Blended Payments”?
This year also sees the trial launch of blended payments, where providers are paid based on outcomes, not just hours. Think of it like milestone payments rather than ticking the time clock.
Two key participant groups are part of the trial:
- School leavers looking for work
- Young people in aged care homes
More on this later as we learn more.
Core Therapy Line Items: Still Hanging On?
One surprising twist in the 2025–2026 NDIS Pricing Arrangements is what didn’t change. Despite advice and previous discussions, inserts into the 2024/2025 PAPL and provider expectations, the ability to use Core funding for therapeutic supports hasn’t been removed. What’s more confusing is that the agency has decided to add ADDITIONAL core therapy lines to service children younger than 9.
Over the past year, there was growing speculation that therapy supports (like occupational therapy, physiotherapy, or psychology) would soon be restricted to Capacity Building budgets only. This change was seen as a move toward stricter, category-based claiming. But for now, participants can still claim certain therapy supports through Core if it’s disability-health related supports.
(more on this later while we wait to see if the price guide is adjusted to meet the removal expectation)
Why is this important?
- Participants still have access to therapy under Core, where clinically appropriate.
- Providers can continue to offer therapy under Core, but must ensure clear documentation and alignment with NDIS goals and claiming rules.
- This continuation may only be temporary. It’s unclear whether the NDIA plans to phase this out in future updates or simply delayed the change.
For now, if you’re working with participants who rely on therapy from their Core budget, you can continue but stay alert. Future changes could tighten these rules quickly.
Final Launchly Thoughts
The 2025–2026 NDIS pricing updates reflect the NDIA’s ongoing efforts to:
- Align with market standards
- Prioritise outcomes over hours
- Keep the scheme financially sustainable
For providers, this means reviewing your rates, updating your documentation, and making sure your billing practices are fully compliant by July 1.
Need Help Navigating the New Changes?
Launchly offers policy packs, pricing update tools, and virtual assistant services designed to keep your business running smoothly during times of change.
Let’s make this new financial year your most efficient and compliant yet!
view the NDIS webpage to view the new pricing arrangements