How NDIS providers can adapt to the new world of Assistance with Social, Economic and Community Participation funding

For many National Disability Insurance Scheme (NDIS) providers, the latest changes to Assistance with Social, Economic and Community Participation funding have brought up some difficult questions, raising concerns about the knock-on effect budget cuts could have on service delivery and business sustainability. These questions are particularly relevant for providers that have built their businesses around supporting NDIS participants to access and enjoy the community. 

But, while every provider’s circumstances are different, one reality all are faced with is that when participant funding changes, provider service models usually need to change too.

From 1 October 2026, for new and reassessed NDIS plans – and from 1 February 2027, for renewed plans – funding for Assistance with Social, Economic and Community Participation is being reset as participants move through the new framework planning process.

You can learn more about the funding changes on this Australian Government web page.

While essential daily living supports remain unchanged, as participants reconsider how they use their funding, providers that rely heavily on individual community participation supports may be impacted by reduced service uptake and increased pressure to find more cost-effective ways of delivering supports.  

For some providers, adapting may mean reviewing service agreements and making small operational changes. For others, it could require a more substantial rethink of how services are delivered, structured, and priced. 

In this article, we've focused on practical actions providers can take to:

• better understand the impact of the changes on their business and their clients
• identify opportunities to adapt
• navigate what’s likely to be a challenging period ahead

Service demand will shift but it won’t disappear 

The need for community participation isn’t going away. People with disability will still want to volunteer, attend appointments, spend time at their local sporting clubs, build friendships, and stay connected to their community. What will change is the amount of funding many NDIS participants will have to pay for supports to help them do that.

This means providers should expect:

• reduced demand for one-to-one community participation supports
• greater uptake of shared supports and group-based activities
• questions from participants about where their funding is being spent
• requests for flexible support options that can deliver positive outcomes for participants at a lower cost

Providers will be able to demonstrate their value by being flexible and by positioning their businesses to deliver high-quality supports efficiently, rather than relying solely on a one-to-one model of support. 

Review your service model now

If your clients rely on Assistance with Social, Economic and Community Participation funding to access your services, your revenue may be affected. As this happens (not all participants will be impacted at once) make sure you take the time to review your current business set up so you’re not scrambling to fill gaps.

You could start by asking yourself these questions:

• Which of our services rely heavily on one-to-one supports?
• Could some of our programs or services meet participant needs and achieve similar outcomes in small group settings?
• Can we redesign our community participation programs rather than reducing or removing them?
• Are there activities and services that could be delivered differently, without compromising quality or participant choice?

Group programs won’t suit everyone, and they shouldn’t replace individual supports where those remain necessary. However, for many participants, they can provide meaningful social connection while also allowing funding to stretch further. They can also help to build a more sustainable business model for providers. 

Have honest conversations with your clients

Rather than waiting for your clients to bring their NDIS plans and revised funding allocations to you, it’s worth scheduling time to have proactive conversations with them.

You can start by finding out what’s most important to them for the period ahead, looking at how their supports are currently delivered, and going over your service agreement together.

Funding cuts are a challenging topic to cover but speaking authentically and openly about lower-cost alternatives to the supports your clients are currently receiving will go a long way towards solidifying your relationships with them. And it will also help to build the foundations that allow you to work together to resolve any issues as they arise too.

These conversations aren’t about reducing supports, they’re about ensuring you can continue to deliver meaningful services to your clients within new budget constraints. By opening the dialogue, you can show your commitment to working together with your clients to find solutions that meet their needs.

Review pricing and service efficiency

Previously, your clients may have had enough funding in their Assistance with Social, Economic and Community Participation budget to absorb extra costs, but in the new world, it’s unlikely this will be as simple.

Many providers are already operating on the slimmest of margins, but with the sector getting a shake-up, now is the time to look at the how your business model operates and where savings may be able to be made.

Some areas of business that are key to unlocking potential savings for your clients may include:

• staff rostering
• provider travel
• administration and non-face-to-face charges
• vehicle and venue costs
• cancellation fees
• technology – in particular, scanning the market for tools that can reduce your administrative burden

Small improvements across your business can add up to big savings for your clients, meaning more value for money for them and a more sustainable business for you. 

What to look out for when reviewing service agreements

Reviewing service agreements is a great opportunity to strengthen client relationships and make sure everyone is on the same page.

Every service agreement should be checked over to make sure the supports being delivered are accurately outlined in the document and still align with your client’s needs and goals.

If a mix of support ratios (one-to-one and/or shared supports) is used, that should also be detailed, and additional costs – such as provider travel and cancellation fees – and the policies that relate to them should be set out clearly in the service agreement too. 

Change doesn't have to mean slowing down

The providers that are most likely to weather the storm of the National Disability Insurance Agency’s latest funding changes won’t necessarily be the largest or the cheapest in the market – they’ll be those that are the most agile, innovative, collaborative and efficient.

At the end of the day, the need for high-quality community support hasn’t gone away and finding new ways to deliver it in a more cost-effective way will benefit everyone.