An evolving NDIS: What 2025’s regulatory shifts mean for providers
- Rachel Riley
- Apr 14
- 3 min read
The National Disability Insurance Scheme (NDIS) has transformed the way Australians with disability access supports. But in 2025, providers are finding themselves navigating an increasingly complex and high-stakes regulatory environment—one shaped by sweeping reforms, new compliance demands, and an uncertain policy future.
Reform fatigue meets operational complexity
Over the past year, a wave of major reforms has been introduced in an effort to address systemic inefficiencies and ensure the scheme’s long-term sustainability. However, many of these changes have unintentionally added complexity and operational strain for providers.
Among the most significant developments:
The Independent Review of the NDIS proposed 26 recommendations and 139 actions, driving national debate around foundational supports and structural redesign.
Australia’s Disability Strategy 2021–2031 is undergoing review to better reflect participant and provider needs in a changing landscape.
The NDIS Provider and Worker Registration Taskforce is moving to enforce tougher entry standards, with new registration requirements expected.
The National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Act 2024 has introduced stricter budget controls, temporary funded support lists, and a sharper focus on early intervention.
Compliance enforcement has intensified, with $1.6 million in fines and thousands of civil actions reported in 2024 alone.
The sector’s concern is clear: while these reforms aim to enhance quality and accountability, they risk overwhelming providers already stretched thin. A recent survey showed 70% of providers cite funding reductions as their top concern, raising alarms about the sustainability of service delivery.
From reform to reality: What’s next in 2025
While many reform discussions remain in flux, providers should prepare for tangible changes coming in 2025—particularly around foundational supports, registration rules, and budget-setting practices.
“People often describe the disability sector as being ‘reform-rich’,” says Michael Perusco, CEO of the National Disability Services (NDS). “But right now, it’s also deeply uncertain.”
One key area of focus is the rollout of foundational supports—intended to provide more accessible services for people not currently covered by the NDIS. Although originally set to launch in July 2025, delays in intergovernmental agreements may stall implementation. For providers, this uncertainty complicates business planning and investment in service models.
Meanwhile, the NDIS Quality and Safeguards Commission is accelerating its reform agenda. According to Perusco, “we expect increased regulation of Supported Independent Living (SIL), support coordination, and platform providers. New legislation will likely expand the Commission’s powers and introduce tougher penalties.”
The separation of SIL and SDA services is also on the horizon, although policy mechanisms are yet to be finalised.
Adding further complexity, the NDIS Amendment (Getting the NDIS Back on Track No. 1) Bill 2024 mandates a new budgeting and planning model. The NDIA is currently exploring new assessment tools to set participant budgets—tools that providers believe will be critical in aligning support plans with actual needs.
“Getting planning and budgeting right is the key to good quality supports,” says Perusco. “Providers need clarity to deliver the outcomes participants deserve.”
What this means for providers
The message is clear: compliance is no longer just a box-ticking exercise—it’s a strategic imperative.
Providers must invest in regulatory awareness, adaptive systems, and proactive quality frameworks. Staying ahead of change will mean the difference between resilience and risk.
For a deeper look at the evolving landscape and how providers can prepare for what’s ahead, Drova’s NDIS Provider Outlook Report 2025 offers insights and strategies to navigate reform, manage complexity, and stay focused on delivering high-quality care.
