The National Disability Insurance Scheme (NDIS) continues to evolve as it works toward creating a fair, transparent, and sustainable system that benefits both participants and service providers. A major part of this evolution involves regular updates to the NDIS Pricing Arrangements and Price Limits (PAPL) — the framework that determines how supports and services are priced across the scheme.
The 2025–26 pricing update, effective from 1 July 2025, introduces several key changes based on economic factors, industry feedback, and the outcomes of the Annual Pricing Review. These updates are designed to ensure that participants receive high-quality, value-for-money services while providers are fairly compensated for the work they do.
What Are the NDIS Pricing Arrangements and Price Limits?
The NDIS Pricing Arrangements and Price Limits set out the maximum prices that registered providers can charge for specific services under the scheme. They also explain how costs are determined, how adjustments are made, and how pricing supports a sustainable disability services market.
Each year, these limits are reviewed to reflect changes in wages, inflation, service demand, and other economic factors. The 2025–26 update aims to balance affordability for participants with viability for providers, ensuring the NDIS remains effective and equitable for all involved.
Major Updates in the 2025–26 NDIS Pricing Arrangements
1. Updated Disability Support Worker Cost Model
One of the most notable updates this year is the adjustment to the Disability Support Worker Cost Model, which determines the base hourly rates for many support services. Prices have increased to reflect changes to the Social, Community, Home Care, and Disability Services Industry Award 2010, as well as the latest Superannuation Guarantee rise.
This 3.95% adjustment ensures that providers can continue to pay fair and competitive wages to their workforce, which is essential for maintaining service quality and reducing staff turnover.
For participants, this update provides reassurance that the supports they receive will remain stable, delivered by a motivated and fairly compensated workforce.
2. Extension of the Early Childhood Approach
Another important change is the expansion of the early childhood approach, which now supports children up to the age of nine — previously capped at seven.
This extension acknowledges that early intervention remains critical beyond the age of seven and that many children continue to develop essential functional and social skills during the early primary school years.
By providing access to supports for two additional years, the NDIS aims to ensure that children and families receive timely assistance to build independence, improve participation, and reduce long-term support needs.
3. Updates to Art and Music Therapy Pricing
The NDIS has also reviewed pricing arrangements for art and music therapy, ensuring these valuable supports remain accessible and appropriately costed.
Art and music therapies have proven to offer significant benefits for emotional regulation, communication skills, and overall wellbeing — particularly for participants with cognitive, developmental, or psychosocial disabilities.
The new price limits align with professional standards and ensure that only qualified and accredited practitioners deliver these services, maintaining the integrity and effectiveness of the support.
4. Removal of the COVID Addendum
As part of the 2025–26 update, the NDIS will formally remove the temporary COVID Addendum.
The addendum was originally introduced to provide flexibility and financial relief to providers during the pandemic. With the sector now stabilised and standard operations resumed, its removal marks a return to normal pricing conditions.
This change streamlines pricing documentation and reflects a more predictable operating environment for providers.
5. Updates to the Modified Monash Model Classifications
The Modified Monash Model (MMM) is a classification system used to define geographic areas based on their remoteness. The latest updates to the model have now been incorporated into NDIS pricing to ensure that rural and regional service delivery is properly supported.
For providers working in more remote or outer-regional areas, these adjustments mean that travel and service delivery costs are better reflected in the price limits. Participants in these locations benefit from improved access to services, as providers are more likely to deliver supports where cost barriers previously existed.
6. Specialist Disability Accommodation (SDA) Pricing
A significant update also comes in the area of Specialist Disability Accommodation (SDA). The latest SDA Pricing Arrangements reflect findings from the five-yearly review and take into account recent changes in the Disability Support Pension (DSP) indexation.
The revised pricing aims to promote sustainable investment in accessible housing while ensuring participants can access modern, safe, and comfortable accommodation options suited to their needs.
Benefits for NDIS Participants
The 2025–26 pricing updates offer several benefits for participants across the country:
Greater transparency in how pricing is determined and applied.
Fairer access to services, especially for children and regional participants.
Consistency in how providers apply rates and deliver services.
Improved workforce stability, ensuring continuity of care.
Enhanced value for money, with pricing based on real-world evidence and economic trends.
These updates reinforce the NDIS’s ongoing goal of creating a participant-focused system that ensures supports are reliable, flexible, and outcome-driven.
Benefits for Providers
Service providers also stand to gain from the revised pricing framework. With adjustments reflecting updated wage structures, provider costs, and inflation, the system better supports sustainable operations.
Key benefits include:
Fairer pay structures for disability support workers.
Clarity and consistency in pricing expectations across services.
Recognition of regional service delivery challenges through MMM adjustments.
Reduced administrative complexity with the removal of temporary COVID measures.
These changes collectively contribute to a more predictable operating environment, allowing providers to focus on quality service delivery and business growth.
Ensuring Fairness and Sustainability
The NDIS Pricing Arrangements are more than a financial document — they are a key mechanism for ensuring fairness and sustainability in the disability sector.
The NDIA has worked to strike a balance between affordability for participants and viability for providers. The 2025–26 updates reflect careful consideration of factors such as inflation, cost of living, staff wages, and the evolving needs of the disability community.
This balance helps maintain the integrity of the NDIS, ensuring that it remains financially stable while continuing to deliver life-changing supports for people with disability across Australia.
What Participants and Providers Should Do Next
Participants are encouraged to review their plans and budgets to understand how these changes might affect their funding allocations. While most pricing adjustments are designed to support ongoing service access, participants should speak with their support coordinators or plan managers to confirm any changes in cost or availability.
Providers, on the other hand, should ensure they:
Update their service agreements and billing systems to align with new pricing.
Review workforce budgets to accommodate revised pay rates.
Stay informed about future updates and policy changes.
Keeping up to date with pricing arrangements ensures compliance with NDIS guidelines and helps maintain transparent relationships with participants.
Looking Ahead: Future Reviews and Adjustments
The NDIS remains committed to regularly reviewing its pricing framework to reflect market realities and ensure the ongoing sustainability of the scheme.
Future updates will likely focus on strengthening workforce conditions, improving access in remote areas, and supporting innovative service delivery models. The NDIA continues to consult with participants, providers, and disability advocates to ensure that future pricing arrangements align with both participant needs and sector capacity.
As the NDIS moves into a new era of reform and modernization, the 2025–26 pricing update serves as an important milestone in its ongoing mission to deliver fair, transparent, and high-quality supports for Australians with disability.
Conclusion
The NDIS Pricing Arrangements and Price Limits for 2025–26 represent a forward-looking approach to managing the financial framework of the NDIS.
With updated rates for disability support workers, extended eligibility for early childhood supports, fairer pricing for therapies, and a renewed focus on regional service delivery, these changes are designed to strengthen the NDIS ecosystem for both participants and providers.
By fostering a sustainable and equitable marketplace, these updates ensure that the NDIS continues to deliver on its promise — empowering Australians with disability to live more independent, inclusive, and fulfilling lives.
