NDIA releases Annual Pricing Review ahead of further pricing reforms

The National Disability Insurance Agency (NDIA) has announced changes to National Disability Insurance Scheme (NDIS) pricing, ahead of proposed broader reforms that will strengthen the NDIS provider market. 

The NDIA today released its Annual Pricing Review (APR) for 2023/24. The APR sets the maximum price limits that NDIS providers and health professionals are permitted to charge when providing services to NDIS participants. 

The 2023/24 APR report reflects recent increases to award wages from the Fair Work Commission, and ensures those delivering vital services to Australians living with disability are adequately renumerated.
Following this year’s APR, changes to become effective on 1 July include:

  • Fully implementing the Fair Work Commission's decision to increase minimum wages in awards and superannuation, ensuring providers can fairly compensate their workers. 
  • Increasing price limits for supports that are determined by the NDIS Disability Support Worker Cost Model, including Level 1 support coordination services, to reflect changes in minimum wages following the Fair Work Commission’s Annual Wage Review.
  • Increasing the price limits for psychologists, nurses and other supports based on how much wages and the cost of living have gone up. 
  • Maintaining existing pricing arrangements and price limits for therapy (except for psychologists) and support coordination level 2 and 3. 
  • Adjusting the short-notice cancellation period for non-Disability Support Worker-related supports to 2 business days to better reflect market norms. 

This year’s APR consultation ran amid the backdrop of the comprehensive NDIS Review and Disability Royal Commission – both of which will lead to key reforms in the way Australians living with disability are supported.

While this year’s APR recommends minimal immediate changes, the NDIA is committing to more significant work to strengthen the NDIS pricing model to ensure a quality, diverse provider market is able to meet the individual needs of participants.
In coming months, the Agency will appoint an independent expert to oversee a review of the NDIS pricing structure ahead of next year’s APR.

The NDIA aims to deliver a new pricing approach by 2025 that ensures the market can support the diverse needs of NDIS participants and the Scheme’s ongoing sustainability.

While the review into NDIS pricing takes place, the NDIA will work closely with providers to ensure they have the information, support and resources needed to continue delivering vital supports to participants.

That support includes the Agency’s new ‘Quality Supports’ program, through which the NDIA will directly commission providers to deliver quality services to participants otherwise at risk of not receiving the supports they need.

Providers, and the diverse range of high-quality services they deliver to participants, are integral to improved participant outcomes. The NDIA will continue working closely with the market, participants and the broader disability sector to ensure we have an approach to pricing that works for everyone.

The APR is a robust, evidence-based process for making pricing adjustments. A range of factors are considered including supply and demand in the market, broader economic factors—and importantly—feedback from the disability community, including providers.

View the Annual pricing review.