The NDIS budget reset is no longer just announced. On 1 October 2026, the Minister made the support determinations that put it into effect, and they now apply to plans as they’re created, reassessed or renewed. For most participants, the reset is a cut to two support categories. But for people who need support around the clock, there was a real risk it could leave gaps in essential care, which is why a new safety net came with it. Here’s the plain-language guide.
What’s Now in Force
The support determination reduces budget allocations for social, economic and community participation supports by 50 per cent, and improved daily living skills supports by 10 per cent. It’s a reduction to those categories, not to a whole plan, and some supports within them, including disability-related health supports, are excluded.
It applies from 1 October to new plans and reassessments, and from 1 February 2027 to plan renewals. Every affected participant will have their plan updated by 30 September 2027, and the NDIA says it will contact participants 60 days before a renewal.
The determination is a legislative instrument, so Parliament can still examine it.
Why People on 24-Hour Support Were at Risk
Many people who need continuous support rely on their whole plan to fund it, including participation funding that covers support workers through parts of the day. Cutting that category in half could leave genuine gaps in round-the-clock care. Disability advocates raised this through the Senate inquiry, and the result is a dedicated variation pathway.
How the Safety Net Works
To be eligible, you need to receive 24-hour funded NDIS supports, meaning support throughout the day and night for needs arising from the impairments you’re on the scheme for. And your combined budget for assistance with daily life, home and living, and social, economic and community participation must have been $215,030 or more before the reset. The Department describes that figure as equivalent to 24-hour support at a shared 1:3 ratio.
You then have 90 days from when the reset is applied to your plan to ask for a variation. The NDIA will approve it only if the funding left isn’t enough to safely maintain your 24-hour supports at the ratios previously considered reasonable and necessary.
What It Doesn’t Do
Two limits are important. The variation doesn’t restore the participation funding that was cut. It’s about making sure there’s enough to keep 24-hour support safe. And the reset itself can’t be reviewed. The 50 per cent or 10 per cent reduction on its own isn’t treated as a significant change in circumstances, so it isn’t grounds for a reassessment.
If you’re not eligible for the pathway but your circumstances, support needs or functional capacity genuinely change, you can still ask for a variation or an unscheduled reassessment in the usual way.
What to Do Now
If you or someone you support receives 24-hour supports, work out now whether the combined budget meets the $215,030 threshold, so you know in advance. Watch for the NDIA’s contact before your plan changes, and diarise the 90-day window from the date the reset is applied. Gather evidence of the support ratios you need, especially overnight. SIL providers and support coordinators can help with that.
People with Disability Australia has a clear guide to the changes, and the official detail is on the Department of Health, Disability and Ageing website.
The Bottom Line
The NDIS reset is now in force, cutting participation supports by 50 per cent and daily living skills supports by 10 per cent as plans change between now and September 2027. For people with 24-hour support needs and a combined budget of $215,030 or more, a new pathway allows a plan variation within 90 days if what’s left can’t keep care safe. It won’t restore the cut funding, but it’s an important protection. Know if you qualify, and don’t miss the 90 days. This is general information, not disability, legal or financial advice.
Epik Wire covers the NDIS in plain language for participants, families and providers. Subscribe to our newsletter to stay informed.
