The National Disability Insurance Scheme (NDIS) has released its latest Pricing Arrangements and Price Limits (PAPL) for 2025-26. These updates take effect from 1 July 2025 and bring a series of changes aimed at keeping supports fair, consistent and aligned with current market conditions. The PAPL document sets out the maximum amounts that registered providers can charge for funded supports, helping participants, providers and plan-managers understand pricing rules, service agreements and budget planning.

These changes build on the results of the 2024-25 Annual Pricing Review and reflect a broader effort by the NDIA to promote value for participants, market sustainability, and national consistency in pricing.

What Are the Pricing Arrangements and Price Limits?

These pricing arrangements are essentially the “rulebook” for how much supports can cost under the NDIS. They define:

• Maximum price limits for specific support items and services

• Claiming rules — what counts as travel, non-face-to-face service, etc.

• Differences for location (remote/very remote), time of day (weekend, evening) where applicable

• The support catalogue listing every funded item and its price limit

By referring to the PAPL, participants and providers can check whether a rate offered is within the allowed maximum, and providers can ensure they are charging within compliance. It’s a key part of ensuring fairness, transparency and sustainability of the scheme.

Key Changes Effective 1 July 2025

Here are some of the major changes in the 2025-26 PAPL worth knowing:

1. Standardised National Rates for Many Therapy Supports

One of the significant changes is the move towards national price limits for therapy supports (e.g., physiotherapy, psychology, dietetics, podiatry). Previously rates varied significantly by state and territory.

For example: the new national hourly rate for physiotherapy is set at $183.99. This means in some areas it decreased, while in others it may have increased slightly. Similarly, dietetics and podiatry have also had adjustments. Travel claiming rules for therapy have been tightened, especially labour components.

2. Increase in Support Worker-Related Rates

The PAPL updates reflect changes in the labour market. The Disability Support Worker (DSW) Cost Model, which provides the wage base for many supports, has been adjusted to reflect changes to the minimum wage and superannuation. The result is an indexation of about 3.95% for many support worker-based services.

3. Extension of Early Childhood Approach Age Limit

A meaningful change for families: the early childhood approach now covers children up to 9 years old (previously up to 7 years old). This extension gives more children access to early intervention supports under relevant funding lines for longer.

4. Revised Rules for Provider Travel and Non–Face-to-Face Services

Claiming rules for travel and non–face-to-face time (like report writing or phone calls) have been simplified and made more consistent across the country. This means providers must be clearer in service agreements and billing, and participants should check how travel is being claimed.

5. Updates to Specialist Disability Accommodation (SDA) Pricing

The PAPL has been updated to reflect indexation changes for SDA, and adjustments to the SDA Price Calculator following changes in the Disability Support Pension and housing costs. Participants in SDA arrangements should note the updated pricing rules and ensure their provider agreements align.

6. New Requirements for Provider Responsibilities

The updated document includes new language clarifying provider responsibilities — including the obligation to declare and manage conflicts of interest, and to deliver supports that are “reasonable and necessary.” These additions strengthen transparency and accountability in the scheme.

What This Means for Participants

For participants, these updates deliver several important outcomes:

• Better transparency: You can compare what providers charge against the official maximums in the PAPL. This helps with budget planning and understanding if your service agreement is fair.

• National consistency: Regardless of your location, rates for many supports will now be more consistent around the country, helping reduce confusion for participants in different states or territories.

• Extended access for children: If you have children nearing the age limit under early childhood supports, the raise to age 9 offers more time to access early intervention services.

• Better planning discussions: Knowing the updated rates gives you and your planner or support coordinator clearer basis for negotiating service agreements and understanding what funding levels mean.

• Budget stability: If your provider’s rate increases due to the cost model adjustment, your plan is indexed accordingly. Conversely, if a rate decreases, your funding doesn’t necessarily drop — your plan budget is maintained but future service agreements may reflect lower maximums.

What This Means for Providers

For registered providers and organisations delivering NDIS-funded services, the 2025-26 PAPL update brings several imperatives:

• Update service agreements and billing systems: All support agreements must reflect item numbers, updated maximum rates, travel rules and location classifications according to the new PAPL.

• Review cost structures: With some rates decreasing (especially in therapy supports) and others increasing (support worker services), providers must ensure their business models remain sustainable.

• Communicate with participants: Providers should explain to participants how pricing changes may (or may not) affect their services, what funding covers, and how agreements are structured.

• Comply with new travel and non-face-to-face rules: Service delivery models must align with the updated claiming rules to avoid errors or claim rejections.

• Stay informed on future reforms: The NDIA has signalled further reforms through the workplan from the Independent Pricing Committee, so providers should stay alert to upcoming pricing changes.

Practical Steps to Navigate the New Pricing Rules

Here are some best-practice steps for participants and providers:

1. Download the PAPL and Support Catalogue: Get the official 2025-26 documents from the NDIA website.

2. Identify your support items: Use the support catalogue to identify the item numbers for the services you deliver or receive.

3. Check price limits: Compare your current service agreement rate with the maximum listed in PAPL. If your rate is above, you may need to renegotiate or check compliance.

4. Service agreements: Ensure that the service agreement clearly states the item number, rate, duration, location classification (metro, regional, remote) and travel rules.

5. Monitor plan budgets: Participants should check with their plan manager or NDIA how the pricing changes may affect service budgets and future planning conversations.

6. Update internal systems: Providers must update invoicing software, costing models and staff pay rates to reflect the new cost base and travel rules.

7. Communicate changes: Both participants and providers should exchange clear information about how the pricing change affects service delivery, budget usage and expectations.

Looking Ahead: The Direction of Future Pricing Reform

While the 2025-26 update marks a major milestone, future pricing reforms are already in motion. The NDIA is working on a multi-year workplan following recommendations from the Independent Pricing Committee, which suggests more nuanced, differentiated pricing may come — for example, differentiating remote versus metropolitan supports more finely, or adjusting for support intensity categories.

This means we should expect:

• Further calibration of price limits based on provider cost data, regional conditions and support intensity

• Improved transparency in how price limits are set and adjusted

• A stronger link between pricing changes and supports outcomes, cost-effectiveness and competition in the market

Participants and providers are encouraged to stay informed and engaged in upcoming consultations.

Conclusion

The release of the NDIS Pricing Arrangements and Price Limits for 2025-26 marks a significant evolution in how the scheme sets and manages support costs. The updates aim to bring national consistency, align with labour and economic conditions, and extend eligibility for early childhood supports — while introducing clearer rules for travel, non-face-to-face services and provider responsibilities.

Whether you’re a participant planning supports or a provider delivering services, these changes matter. By understanding the details, updating your agreements, staying compliant and communicating clearly, you can make the most of this update — and ensure that supports remain stable, transparent and fit for purpose in the years ahead.