The National Disability Insurance Scheme (NDIS) is changing, and if you have been following the news you may be feeling unsure about what it means for you. The May 2026 Federal Budget and the NDIS Amendment (Securing the NDIS for Future Generations) Bill 2026, which Parliament passed on 19 August 2026, have led to a lot of headlines about funding cuts and tighter eligibility.
For participants, families and providers, this is a stressful time. It can be especially hard for people living with psychosocial disability, where a condition that changes from week to week can make paperwork and new rules feel overwhelming.
At Lanara, we provide psychosocial and personal care support in Sydney to self-managed and plan-managed participants, and we hear these worries often. The changes are real, but most of them start gradually over the next two years, and the NDIA says that right now you can keep using your plan and supports as usual.
This guide explains what has changed, what is coming and when, and the practical steps you can take now.
The Big Picture: What is Actually Changing?
The government’s stated goal is to make the scheme sustainable. According to the 2026–27 Budget, the reforms are expected to slow the growth in NDIS payments by $37.8 billion over four years, compared with earlier projections. That is a slower rate of growth, not a cut: NDIS spending will still go up each year.
In practice, the changes affect who can join the scheme, how plans are reassessed, how some budgets are set, and how funding is claimed and recorded. These are the main dates the NDIA has published:
- Now in effect: new rules about who can ask for an early plan reassessment (explained below).
- From 1 October 2026: some budgets are reduced when a plan is reassessed or a new plan is approved, and the NDIA can suspend a plan if a participant does not respond to repeated requests for information.
- From December 2026: claims must be made within 90 days of the support being delivered.
- From February 2027: plans due for reassessment are either reassessed or renewed with the same supports, and unspent funds are not carried over.
- From April 2027: the NDIA begins introducing its new way of planning.
- From October 2027: a trusted panel of plan managers is set up, and participants will have six months to move to a plan manager on the panel.
- From January 2028: new access rules start for people applying to the NDIS.
The Shift to Functional Capacity Assessments
One of the biggest changes is how eligibility will be decided. From January 2028, decisions about who can join the NDIS will be based on a new standardised, evidence-based assessment of functional capacity. This applies to new applicants first. Existing participants will be reassessed over three years.
Until now, access has often relied heavily on diagnoses and allied health reports. The new approach puts more weight on how a condition affects your everyday life. The question becomes less “What is your diagnosis?” and more “What can and can’t you do day to day because of it?” This is separate from the new planning framework, which changes how plans are built from April 2027.
The Challenge for Psychosocial Disability
This change worries many people with psychosocial disability, and mental health organisations such as the Mental Health Coordinating Council in NSW have raised concerns about what the reforms mean for psychosocial supports.
Mental health conditions often come and go. Someone might manage well for weeks and then find basic tasks impossible. If an assessment happens on a good day, it may not show what support looks like on a bad one. The effects can also be hard to see from the outside: severe depression or agoraphobia can stop someone leaving the house without any visible sign.
That is why good records matter. Notes kept over time, and reports from your treating team that describe how your condition affects daily life, help show the full picture, including your worst days and not just your best.
Changes to Plan Reassessments and Budgets
The new laws have changed who can ask for a plan reassessment before the scheduled date. Only participants, plan nominees or child representatives can now ask, and only when there has been a significant and ongoing change in their functional capacity and support needs, or in their living, education, work or informal support arrangements. The NDIA has 90 days to decide. Plan variations are still available for smaller, short-term or urgent changes.
If you need more support, it helps to have clear evidence of what has changed and how it affects you. Linking each support you ask for to your functional needs and your NDIS goals makes your request easier to assess.
The Reset of Participation Budgets
Budgets for social, economic and community participation supports, and for improved daily living skills, are being reduced. The reduction starts from 1 October 2026 when a plan is reassessed or a new plan is approved, and from 1 February 2027 when a plan is renewed. Funding for help with eating and drinking, education, employment and disability-related health supports is not affected.
These supports are not being removed. Social and community participation is still part of the NDIS, but if your budget is smaller you will need to plan how to use it.
It can help to focus on supports with a clear goal, such as building confidence on public transport, practising social skills, or joining a local group you want to keep going to on your own. Being able to explain what a support helps you achieve, and not just what you do, makes it easier to show why it is needed.
What This Means for Self-Managed and Plan-Managed Participants
Lanara supports self-managed and plan-managed NDIS participants, as well as private clients. If you manage your own funding or use a plan manager, a few changes affect you directly:
- Claim within 90 days. From December 2026, claims must be made within 90 days of the support being delivered.
- Keep your records. Participants will need to keep records of supports and payments for 3 years. You may need to repay funding if you cannot show it was used correctly.
- Answer NDIA requests. From 1 October 2026, the NDIA can suspend a plan if a participant does not respond after repeated attempts to contact them.
- Check your plan manager. From October 2027, plan managers will come from a trusted panel. If yours is not on it, you will have six months to move.
Your right to choice and control has not changed. You can still choose providers who suit you and your values. What matters more now is that each support is clearly linked to your NDIS goals and that you keep good records of what you received and what it helped with.
How Lanara Can Support You Through the Changes
When the rules are changing, steady support matters. Navigating the NDIS can feel like a full-time job, and we aim to take some of that load so you can focus on your life.
Every one of our support workers holds a university degree in psychology or a related discipline and has completed mental health and trauma-informed training. That helps them understand conditions that change from day to day.
The Advantage of Psychology-Informed Support
When decisions depend more on how you function day to day, it helps to have support from people who notice the details. Our support workers understand fluctuating conditions. As well as helping with tasks, they notice patterns, such as times of day or situations that are harder for you.
With your consent, we can provide a summary of how your support is going to you, your support coordinator, your plan manager or your treating team. A summary doesn’t replace reports from your health professionals, but they can add day-to-day detail when it is time for your plan to be reassessed.
Whether we are helping with daily living or community participation, we work with you towards your goals and greater independence, which is what NDIS funding is meant to support.
Practical Next Steps for Participants
Many of these changes will take time to reach you, but there are things you can do now.
- Use official sources. Check the NDIS website and trusted advocacy organisations rather than social media, where rumours can add to the worry.
- Keep a record of your days. A simple diary of what was hard, especially if your condition fluctuates, helps show what support you need. Write down the bad days as well as the good ones.
- Talk to your allied health team. Ask your occupational therapist, psychologist or other allied health professionals to describe how your condition affects your daily life, not just your diagnosis.
- Review your goals. Take time to review your current NDIS goals. Clear goals make it easier to show how your supports help when your plan is reassessed.
- Look at how you use your budget. If your participation budget is reduced, put it towards the supports that help you most.
Moving Forward with Confidence
The NDIS is changing, but the right of people with disability to quality, person-centred support has not. The reforms bring stricter rules and a greater need for evidence, which can be hard, especially for people with psychosocial disability.
With preparation, good records and the right support around you, these changes are manageable. At Lanara, we will work alongside you through this transition with psychology-informed support that respects your dignity and independence.
If you are a self-managed or plan-managed participant looking for support from people who understand the new NDIS rules, reach out to Lanara. We are happy to talk through what the changes might mean for you. We support adults across six areas of Sydney, from the Inner West to the Eastern Suburbs.