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How NDIS eligibility and funding is decided

A person looking down doing clay work.

Change can be confusing at the best of times – and in the National Disability Insurance Scheme (NDIS) it’s usually accompanied by a lot of new terminology as well.

In recent times, you may have heard about something called a ‘Notice of Impairments’ – and you may be wondering what it’s all about.

Don’t worry, we’ve got you covered.

What's a Notice of Impairments?

The 2024 introduction of new legislation governing NDIS brought with it a raft of changes, including the introduction of a new tool known as a Notice of Impairments.

Developed in response to recommendations made by the NDIS Review – as well as requests from people with disability for clarity around Scheme access – the Notice is designed to provide you with information about how you meet the NDIS’ disability or early intervention requirements, or both.

But what else does the Notice mean and who does it affect? Here’s what we know so far.

Everyone who’s joined the Scheme since 1 January 2025 has been told what impairment or impairments made them eligible for the NDIS, with the information outlined in their Notice.

People who were accessing NDIS supports prior to 2025 will receive their Notice when they move to a new plan, and the Agency will let them know if any further information is needed, and whether there will be any changes made to their supports.

So, for now, there’s nothing you need to do.

Why has the NDIA introduced the Notice of Impairments?

In the past, NDIS eligibility was based solely on whether or not a person had a diagnosed disability, but under the new legislation, things have changed.

These days, to become an NDIS participant, you need to meet the Agency’s disability or early intervention requirements, or both. That means you must provide the NDIA with evidence of one or more impairments that are likely to be permanent and show how your disability impacts your daily life.

Under the new system, there are six categories of impairment:

  1. Intellectual 
  2. Cognitive 
  3. Sensory 
  4. Neurological 
  5. Physical 
  6. Psychosocial

If the NDIA agrees your disability spans multiple categories (e.g. intellectual and physical), then your Notice will clearly state that.

To find out more about the Agency’s approach to impairments, click here.

Can I change my impairment category?

You or your nominee (if you have one) can ask the NDIA to vary your impairment category if it’s not right, or if things have changed.

It’s likely you’ll need to provide evidence to support your request and if the NDIA doesn’t agree with you and decides not to make a change, you can ask for that decision to be reviewed.

Does this mean my supports will change?

The NDIA understands that everyone is different and even people with the same diagnosis can have different impairments and support needs.

Under the new system, every NDIS participant will have a support needs assessment, which means the Agency will look at your disability-related support needs and use the information gathered to decide the funding you need and what it should be spent on.

The support needs assessment process is still a work in progress. The NDIA has committed to co-designing it with the disability community, so keep an eye on the NDIS website for more information.

We’ll keep you updated too, as soon as we know more.

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