For psychology and allied health practices that built their business model around NDIS revenue, the question is no longer whether to adapt — it is whether they can do so quickly enough.
For much of the past decade, many psychology and allied health practices did not need to think seriously about marketing. The NDIS provided a steady pipeline of participants, referrals came through support coordinators, and practices that positioned themselves as NDIS-registered providers could build sustainable caseloads without significant investment in visibility or direct-to-client outreach.
That model is changing.
The Australian Government has introduced the most significant structural reforms to the NDIS since its inception, with changes that directly affect how allied health services are funded, referred and delivered. For practices that built their business model around NDIS revenue, the question is no longer whether to adapt — it is whether they can do so quickly enough.
What is actually changing and when
The National Disability Insurance Scheme Amendment (Securing the NDIS for Future Generations) Bill 2026 was introduced to Parliament in May 2026. The changes it contains are substantial, phased across 2026 to 2028, and already affecting how allied health practices operate.
Travel reimbursements halved from 1 July 2025
Since 1 July 2025, allied health professionals can only claim 50 per cent of their hourly rate for travel time under NDIS pricing arrangements. For mobile practitioners who built their service model around visiting homes, schools and childcare centres, this change represents a direct and ongoing revenue reduction on every appointment that involves travel.
Capacity building budgets reduced from October 2026
From 1 October 2026, capacity building daily activity budgets will be progressively reduced by 10 per cent as plans are reassessed or renewed. The Australian Government has confirmed that 99 per cent of NDIS participants have capacity building daily activity funding. The practical effect for psychology and allied health providers who deliver therapy under this funding category is a reduction in the available budget across nearly every plan they work with.
Social and community participation budgets cut by 50 per cent
Budget allocations for social, civic and community participation supports will be reduced by 50 per cent from October 2026. For allied health professionals delivering supports under this funding category, the impact will vary by discipline — but the direction is consistent.
Children with low to moderate needs redirected from the NDIS
From 1 October 2026, a new program called Thriving Kids will begin providing supports for children aged eight and under with developmental delay and low to moderate autism support needs outside the NDIS. From 1 January 2028, new applicants in this cohort will be directed to Thriving Kids rather than the NDIS.
For paediatric psychology and allied health practices — particularly those working with early intervention, autism and developmental delay — this represents a structural change to their referral pipeline.
A new planning framework from mid-2026
The Australian Government has confirmed a new NDIS planning framework will begin rolling out from mid-2026, designed to create more consistent and transparent budgets. Allied health providers will need to provide detailed, evidence-based reports demonstrating functional need and real-world impact. General or vague recommendations are expected to carry less weight in the new framework.
The real impact on allied health practices
These changes are not hypothetical. They are already affecting practices across Australia.
In March 2026, AEIOU Foundation — one of Australia’s longest-running specialist early intervention providers for autistic children — entered liquidation after NDIS funding reductions caused average early intervention packages to fall from approximately $50,000 to $60,000 per year in early 2024 to between $10,000 and $20,000 by mid-2025. Enrolments dropped from roughly 300 children to 120. All centres closed immediately.
AEIOU is not an isolated case. It is the most visible example of a structural shift affecting practices of all sizes — including private psychology practices, allied health clinics, and sole practitioners who incorporated NDIS work into their caseload without building visibility or referral systems in any other direction.
Why practices that relied on NDIS referrals are most at risk
The NDIS created an unusual dynamic in the allied health sector. Practices that positioned themselves well within the NDIS ecosystem could build full caseloads without websites that converted, without a Google presence, without GP referral relationships, and without any consistent marketing activity.
The referral pipeline was built in — through support coordinators, NDIS portal listings and participant word of mouth. Marketing felt optional.
It was not optional. It was deferred.
Private clients — those paying out of pocket, through Medicare, DVA, WorkCover or private health insurance — find their practitioners very differently. They search Google. They look at websites. They read reviews and check Google Business Profiles. They ask for GP referrals. They contact practices that are visible and easy to engage with.
A psychology or allied health practice that has no Google presence, an outdated website and no consistent content is invisible to this audience. And this audience is not shrinking — the demand for psychology and allied health services in Australia is growing, independent of NDIS funding structures.
What practices can do now
The practices that will navigate this transition most successfully are those that are building visibility with private, Medicare and GP-referred clients right now — not waiting until NDIS revenue has already declined.
Build and optimise your Google Business Profile
Your Google Business Profile is the first thing a potential private client or referring GP sees when they search for your services. It costs nothing to set up and takes a few hours to optimise properly. A well-maintained profile with accurate service descriptions, updated hours, photos and regular posts can drive consistent enquiries without any advertising spend.
Ensure your website communicates clearly to private clients
A website that was built to support NDIS-specific services often does not communicate effectively to private clients. Review your homepage and service pages to ensure they clearly describe your services, your fees, your booking process and how a new client can engage with you.
Invest in GP referral relationships
GP referrals are one of the primary pathways for private psychology and allied health clients. Consistent, professional communication with local GPs — by email, eFax or phone — keeps your practice front of mind when a GP is making a referral decision. This does not require a large budget. It requires consistency.
Publish content that builds trust
Educational content — blog posts, social media posts, email newsletters — that helps your target audience understand your services, your approach and the conditions you work with builds trust before someone is ready to book. Over time, it also improves your visibility in Google search results.
Review your billing and admin systems
For practices continuing to work with NDIS participants, the increased complexity of the new framework — detailed evidence requirements, differentiated pricing for registered and unregistered providers, new reporting obligations — makes efficient admin systems more important than ever. Practices that can process NDIS claims accurately, meet the new evidence requirements and manage the administrative load of the reformed framework will be better positioned than those that cannot.
Where Time Well Spent fits in
Time Well Spent has been working with psychology and allied health practices across Australia for 18 years. We provide virtual reception and admin support, PMS setup and training, accounts and billing management, and AHPRA-compliant marketing.
For practices adjusting to the NDIS changes, we can assist with:
- NDIS billing and claims management inside your existing PMS, including Halaxy, Cliniko, Zanda and Splose
- Building GP referrer communication systems
- AHPRA-compliant marketing that builds your private client pipeline
- Google Business Profile optimisation and management
- Email and social media marketing for psychology and allied health
Need support adjusting to the NDIS changes?
Book a free 20-minute call to discuss your practice and what support, if any, would be useful.
Sources
- Australian Government Department of Health, Disability and Ageing: NDIS Amendment Bill 2026
- Australian Government Department of Health, Disability and Ageing: About the changes to the NDIS
- NDIS: Securing the NDIS for future generations
- Parliament of Australia: National Disability Insurance Scheme Amendment Bill 2026
- NDIS: Travel claiming rules, gap fees and other costs
- Australian Government Department of Health, Disability and Ageing: Thriving Kids
- NDIS: Update — a new way of planning
- Conway Consulting Group: NDIS Bill analysis for allied health providers
- Canberra Times: Australia’s allied health boom was built on NDIS funding
- Cas Health: NDIS funding uncertainty and provider impacts
- People with Disability Australia: What are the NDIS reforms, and why are they happening?
Statistics and funding details should be verified at the official Australian Government NDIS reform page before publishing: health.gov.au.