The NDIS pricing review shows most important changes based on data from over 10.5 million therapy transactions. This complete analysis, the largest longitudinal study to date, reveals NDIS hourly rates for services like Physiotherapy at $193.99—up to 68% higher than Medicare and Private Health Insurance standards in some states.

The new NDIS price guide indicates NDIS pricing arrangements will increase by 3.95% from July 1, 2025. This reflects increases in the minimum wage. Therapy supports factored in $2.4 billion in payments during the six months to December 2024. This represents over 10% of total NDIS spending. The NDIS review explains these changes want to arrange NDIS charges with what other Australians pay through Medicare or private insurance.

The Independent Pricing Committee’s establishment marks a milestone after ten years of the Scheme. The NDIA has committed $24.6 million to trial blended payments. These reforms indicate a possible move away from the current fee-for-service model toward outcome-based approaches.

NDIA releases 2024-25 pricing review with sweeping changes

The National Disability Insurance Agency just revealed its 2024-25 Annual Price Review (APR). This marks a big transformation in the NDIS marketplace. The agency wants to create a fairer, budget-friendly NDIS system through these reforms.

APR introduces new national price limits for therapy supports

The biggest change replaces state-based pricing with standard national rates. Psychologists will now receive a national rate of AUD 356.24 per hour instead of different regional rates. This change creates both benefits and drawbacks. Practitioners in Queensland, NSW and Victoria will see small increases in their rates. But their counterparts in Western Australia, South Australia, Northern Territory and Tasmania will face a drop of AUD 17.17 per hour.

Physiotherapy services will see a reduction of AUD 15.29 per hour. Dietetics and Podiatry support rates will drop by AUD 7.64 per hour. This means physiotherapists in WA, SA, NT and TAS will experience a total decrease of AUD 62.12 per hour.

Price adjustments reflect Fair Work Commission wage decisions

These price changes directly follow the Fair Work Commission’s decision to raise minimum wages in awards by 3.5%. The NDIA will also adjust price limits for supports by 3.95% starting July 1, 2025. This adjustment includes both the minimum wage increase in the Social, Community, Home Care, and Disability Services Industry Award 2010 and the required 0.5% rise in Superannuation Guarantee.

These changes make sure frontline disability support workers get their proper pay increases. Level 1 support coordination services will also see their prices adjusted based on the DSW Cost Model.

NDIS pricing arrangements to take effect from 1 July 2025

The new pricing structure starts from July 1, 2025. Participant plans will get updates throughout July. Their funding will be indexed on July 13 to match these price changes.

This year’s review made use of information from over 10 million more transactions. It compared standards against Medicare data, private health insurance claims, and 13 similar government schemes. The data showed that many NDIS therapy pricing limits were higher than market rates. This is a big deal as it means that some rates were up to 68% above normal market prices.

NDIA adjusts support categories based on data and benchmarks

The NDIA analysed over 10.5 million therapy transactions and made targeted price adjustments in multiple support categories based on market data.

Therapy support prices reduced to line up with Medicare and PHI

The NDIS pricing review shows major price gaps between NDIS therapy rates and market measures. Data proves that people with disability pay “NDIS premiums” for certain therapies. NDIA’s analysis reveals NDIS price limits for physiotherapists in Victoria and NSW are AUD 117.73 more per hour than Medicare Benefits Scheme’s median hourly rate. The current NDIS hourly price limit of AUD 296.61 for Physiotherapy (or AUD 343.44 in WA, SA, NT and TAS) exceeds MBS and PHI measures by 22-29% in eastern states. These rates go up to 55-68% higher in other regions. Physiotherapy rates will drop by AUD 15.29 per hour from July 1, setting a new national cap at AUD 281.32. Dietitians and podiatrists will see their maximum hourly rates decrease by AUD 7.64.

Disability Support Worker rates increased by 3.95%

Unlike therapy rate cuts, the NDIS price guide shows a 3.95% increase for supports set by the NDIS Disability Support Worker Cost Model. This change comes from the Fair Work Commission’s decision to raise minimum award wages by 3.5% plus the 0.5% rise in mandatory superannuation. Frontline disability support workers will get their entitled pay rise under the Social, Community, Home Care, and Disability Services Industry Award 2010.

Support coordination and nursing services receive indexation updates

The NDIS review covers other support categories too. Level 1 support coordination services will get price adjustments that line up with the DSW Cost Model. Support coordination levels 2 and 3 will stay the same. The NDIA suggests increases for nursing and other supports not covered by DSW-related or capital supports. These increases use an 80/20 weighting of the Wage Price Index and Consumer Price Index through March 2025.

Plan management fees simplified with removal of setup costs

Plan Management services will see key changes in NDIS pricing. Plan Managers can’t charge setup fees anymore. Plan Management will now use a single national rate for administration no matter the location, and remote loadings will end.

NDIA removes state-based pricing differences for fairness

The NDIA’s latest pricing review shows a radical alteration toward geographic fairness. They have eliminated state-based price differences to create a more consistent national system.

Physiotherapy and psychology rates standardised nationally

The NDIA managed to keep higher price limits for psychologists and physiotherapists in some states as a temporary measure since 2019 to help market growth. Psychology services will now cost AUD 342.48 everywhere in Australia. Practitioners in Queensland, NSW and Victoria will see a small increase. However, those in Western Australia, South Australia, Northern Territory and Tasmania will face a reduction of AUD 17.17 per hour.

A new national cap of AUD 281.32 now applies to all physiotherapy services. Data showed that NDIS hourly price limits for physiotherapy at AUD 296.61 (or AUD 343.44 in WA, SA, NT and TAS) exceeded Medicare and Private Health Insurance standards by 22-29% in eastern states. Other regions had rates up to 55-68% higher.

Remote and very remote loadings eliminated for plan management

Plan Management now follows a single national rate for administrative components whatever the service location. The NDIA has completely removed remote and very remote loadings for plan management services. Plan Managers can’t charge setup fees anymore.

Therapy travel claims capped to reduce participant cost burden

New provider travel billing policies appear in the NDIS price guide. Therapy providers can now claim only 50% of their hourly price cap for travel. Earlier rules allowed providers to claim up to 30 minutes of travel time to reach participants.

The price caps for therapy supports now come in 10-minute increments. This change helps providers line up their claimed time with actual service delivery and offers more flexible session lengths.

Independent Pricing Committee drives long-term reform

The Independent Pricing Committee (IPC), 4 months old, continues to reshape the NDIS marketplace beyond immediate price changes. The Australian Government created this committee in September 2024 to examine pricing approaches after the Scheme’s decade-long operation.

IPC recommends separate pricing based on service outcomes

The Committee’s final report signals a transformation from the traditional hourly pricing model that has shaped the ndis price guide from the start. The IPC suggests a nuanced approach that considers both support delivery methods and participant benefits, rather than defaulting to hourly pricing. This perspective acknowledges that supports don’t function similarly. The Committee believes price separation would create better outcomes for NDIS participants and providers. The NDIA Board has pledged to speed up work on differential pricing, particularly for registered Supported Independent Living (SIL) and early childhood therapy providers who support participants with complex needs.

NDIA to publish three-year pricing reform roadmap

This year’s ndis pricing review includes the NDIA’s pledge to publish a complete three-year work plan for pricing reform. The roadmap will detail how future ndis pricing arrangements will develop. The plan includes targeted analysis of specific support categories, testing of different pricing approaches, and broad stakeholder consultation. This marks the first time the NDIA has committed to long-term pricing transparency, which helps providers plan their future business operations strategically.

Blended payments and quality pilots to inform future models

The Australian Government has dedicated AUD 37.61 million over four years to test innovative blended payment methods as alternatives to the current fee-for-service model. Starting in 2025, these trials will evaluate:

• Enrolment payments where providers receive funds for delivering supports over extended periods (1-2 years)
• Outcome-based payments where providers receive payment when participants reach specific goals

The ndis review learns from the Quality Supports pilots that focus on support coordination and SIL services. These initiatives work together to change the focus from support quantity to outcome quality, which creates a more mature and thriving NDIS marketplace.

Conclusion

Looking Ahead: The Future of NDIS Pricing and Support Services

The 2024-25 NDIS pricing review marks a turning point for Australia’s disability support system. NDIA has transformed its pricing approach based on data from more than 10.5 million therapy transactions.

National standardised rates now remove long-standing geographic inequities, creating winners and losers in different states. WA, SA, NT and Tasmania’s practitioners face big cuts in their rates. Their eastern state counterparts might see small increases. This standardisation and the 3.95% rise in disability support worker rates shows NDIA’s balance between fair pay and money management.

Data shows that NDIS therapy rates were up to 68% higher than market standards in some areas. The NDIA wants to line up physiotherapy, dietetics and podiatry rates with Medicare and private health insurance standards. This removes what they call it an “NDIS premium” that participants had to pay.

The new Independent Pricing Committee shows how NDIS has changed its market oversight. They suggest different prices based on service results rather than hours worked. This shows they better understand the value of disability support.

The $37.61 million for blended payment trials is a big deal as it means that the fee-for-service model’s days are numbered. These trials and the upcoming three-year pricing reform roadmap will change how providers and participants use the system.

Providers have limited time to change their business approach before these changes start on July 1, 2025. All the same, NDIA’s detailed data shows these reforms come from solid evidence.

These changes might create short-term hurdles for some providers. The NDIS wants to build a more eco-friendly and fair system that focuses on results. This change from quantity to quality shows how the scheme has grown as it enters its second decade.

FAQs

Q1. What are the key changes in NDIS pricing for 2024-25? The NDIS pricing review for 2024-25 introduces national standardised rates for therapy supports, a 3.95% increase for disability support worker rates, and reductions in some therapy prices to align with Medicare and private health insurance benchmarks. These changes aim to create a more equitable and sustainable NDIS system.

Q2. How will the new pricing arrangements affect therapy services? Therapy services will see significant changes, with physiotherapy rates reduced by AUD 15.29 per hour and a new national cap of AUD 281.32. Psychology services will be standardised at AUD 342.48 across all states and territories. These adjustments aim to align NDIS charges with broader market rates.

Q3. Are there any changes to support coordination services? Yes, Level 1 support coordination services will have prices adjusted in line with the Disability Support Worker Cost Model. However, support coordination levels 2 and 3 will remain unchanged. The NDIS is also exploring a more connected system of support with potential changes to how support coordination is delivered and funded.

Q4. How will the new pricing affect Plan Management services? Plan Management services will see significant changes. Setup fees have been eliminated, and there will now be a single national rate for the administration component regardless of location. Remote and very remote loadings for plan management have also been removed.

Q5. What long-term reforms are being introduced to the NDIS pricing system? The NDIS is introducing several long-term reforms, including the establishment of an Independent Pricing Committee to review pricing approaches. The NDIA will publish a three-year pricing reform roadmap and is allocating AUD 37.61 million to trial innovative blended payment methods as alternatives to the current fee-for-service model.