If you’re wondering how does NDIS work, you’re far from alone — the scheme supports over 761,000 Australians, but for people just starting out, the paperwork, jargon, and processes can feel overwhelming.
The truth is, once you understand the basics, the National Disability Insurance Scheme (NDIS) is actually quite logical. In this guide, we’ll explain exactly how the NDIS works — from eligibility and applying, to funding and supports, to what’s changing in 2026 — all in plain language, with real numbers from official sources.
Whether you’re applying for the first time, helping a family member, or just curious about how the system works, this guide will give you everything you need to know.
What Is the NDIS?
The National Disability Insurance Scheme (NDIS) is Australia’s national system for supporting people with permanent and significant disability. Launched in 2013, it replaced the old fragmented state-based system with a single national scheme.
Here’s the key thing to understand: the NDIS is not a welfare payment. It’s not like Centrelink or the Disability Support Pension. It’s a funding scheme that gives eligible people a budget to purchase the disability supports they need — supports chosen by them, from providers they trust, based on their own goals.
The NDIS is run by the National Disability Insurance Agency (NDIA), a government body that administers the scheme. The NDIA makes eligibility decisions, creates plans, approves funding, and regulates providers alongside the NDIS Quality and Safeguards Commission.
NDIS by the Numbers (2026)
- 761,442 participants currently on the scheme (as of Feb 2026)
- 548,240 people receiving disability support for the first time through the NDIS
- Approximately 80,000 children with developmental delay supported
- 26,500 new participants joined in the last quarter alone
- Annual cost growth slowed to ~10% (target: 8% by 1 July 2026)
Who Is the NDIS For?
The NDIS is designed for people with permanent and significant disability that substantially affects their daily life. But understanding exactly who qualifies is where it gets specific.
The Eligibility Checklist
To become an NDIS participant, you need to meet all three of these requirements:
| Requirement | Details |
|---|---|
| 1. Age | Between 9 and 65 years old. Children under 9 use the early childhood approach. People 65+ use aged care services instead. |
| 2. Residency | Australian citizen, permanent visa holder, or Protected Special Category Visa holder — and you must live in Australia. |
| 3. Disability | Permanent impairment (intellectual, cognitive, neurological, sensory, physical, or psychosocial) that substantially affects your ability to do everyday activities. |
What Counts as a Disability?
The NDIS covers six broad categories of disability:
- Intellectual — conditions affecting learning and reasoning (e.g., Down syndrome, global developmental delay)
- Cognitive — brain-based conditions affecting memory, planning, and processing (e.g., acquired brain injury, dementia under 65)
- Neurological — conditions affecting the nervous system (e.g., multiple sclerosis, cerebral palsy, Parkinson’s disease)
- Sensory — blindness, low vision, deafness, or hearing loss
- Physical — conditions affecting mobility, strength, or movement (e.g., spinal cord injury, muscular dystrophy)
- Psychosocial — mental health conditions that cause significant disability (e.g., schizophrenia, severe bipolar disorder, severe PTSD)
Early Intervention Pathway
You may also be eligible for the NDIS under the early intervention pathway if getting supports now would reduce your need for supports in the future — even if you don’t have a permanent disability yet. This is particularly relevant for children with developmental delay.
How the NDIS Works: The Journey from Application to Supports
Here’s a step-by-step walkthrough of how the NDIS works from the moment you first apply to when you’re using your funded supports:
Step 1: Apply for the NDIS
You can apply for the NDIS by:
- Phone — call the NDIS on 1800 800 110 and make a verbal access request
- Form — complete the Access Request Form and email it to NAT@ndis.gov.au
- In person — visit a Local Area Coordinator (LAC) or Early Childhood Partner who can help you apply
You’ll need to provide evidence of your disability from a treating health professional (GP, specialist, OT, psychologist, etc.). The NDIA will tell you what evidence they need based on your specific condition.
Step 2: The NDIA Decides
After receiving your Access Request, the NDIA has 21 days to make an access decision. They’ll consider your age, residency, and disability evidence. You’ll receive a letter telling you whether you’ve been accepted as a participant.
If your application is denied, you have the right to request an internal review within 3 months. If that doesn’t resolve it, you can appeal to the Administrative Review Tribunal.
Step 3: Your Planning Meeting
Once accepted, you’ll have a planning meeting with an NDIA planner or a Local Area Coordinator (LAC). This is where you discuss your goals, current supports, and what you need to live the life you want.
Bring to the meeting:
- Your goals (short-term and long-term)
- Details about your daily challenges
- Current supports you use (family, friends, services)
- Reports from therapists and doctors
- A trusted support person (family member, advocate, or friend)
Our guide on preparing for your first support coordination meeting covers much of what applies to planning meetings too.
Step 4: Your Plan Is Created
After your meeting, the NDIA creates a plan — a document that describes your goals, the supports you’ll receive, and your approved funding. Plans typically last 12 months (though this is changing — see the 2026 reforms section).
Your plan will include funding in specific categories (more on this below). Once approved, you can start using your funded supports.
Step 5: Using Your Plan
You have three options for managing your NDIS funding (we’ll explain each in detail below). Once your plan is active, you can engage providers, book services, and start working toward your goals.
Step 6: Plan Reassessment
Before your plan ends, you’ll have a plan reassessment (previously called a “review”). This is where the NDIA checks in on your progress, adjusts your goals, and approves your next plan. Major changes to the planning process are happening in 2026.
How Does NDIS Funding Work?
One of the most common questions about how does NDIS work is: How do I actually get the money? The short answer is — you don’t. The NDIS doesn’t give you cash. Instead, your plan gives you a budget that pays for approved supports.
The Three Funding Categories
| Category | What It Covers | Flexibility |
|---|---|---|
| Core Supports | Support workers, personal care, transport, household tasks, community access, consumables | Usually flexible — you can move funding between sub-categories |
| Capacity Building | Therapies (OT, speech, psychology), support coordination, skill development, employment assistance | Not flexible — money is locked to specific sub-categories |
| Capital Supports | Assistive technology, equipment, home modifications, Specialist Disability Accommodation (SDA) | Not flexible — approved for specific items only |
For detailed pricing information across every category, see our NDIS Price Guide 2025-26.
“Reasonable and Necessary” — The Magic Words
Every NDIS-funded support must meet the “reasonable and necessary” test. This means the support must:
- Relate to your disability
- Help you pursue your goals
- Help you live more independently
- Represent value for money
- Be likely to be effective
- Take into account support from family, friends, and the community
If a support doesn’t meet all six criteria, the NDIA won’t fund it.
The Three Ways to Manage Your NDIS Funding
When you get your plan, you choose how to manage the money. This is one of the most important decisions you’ll make, because it affects which providers you can use and how much admin work is involved.
Option 1: NDIA-Managed (Agency Managed)
- How it works: The NDIA pays your providers directly. You don’t handle invoices or money.
- Provider choice: You can only use NDIS-registered providers
- Best for: People who want the simplest option with minimal admin
- Downside: Fewer provider choices (registered only), less flexibility
Option 2: Plan-Managed
- How it works: A plan manager (a type of financial intermediary) pays your invoices and handles the paperwork. The plan manager is funded separately from your NDIS plan — you don’t pay out of pocket.
- Provider choice: You can use registered OR unregistered providers
- Best for: Most participants — it balances flexibility with simplicity
- Downside: Slight delay while plan manager processes invoices
Not sure if you need a plan manager or a support coordinator? Read our guide on the difference.
Option 3: Self-Managed
- How it works: You receive the money (or pay upfront and claim back), manage your own invoices, and keep your own records.
- Provider choice: Maximum flexibility — you can use any provider at any price, including above the NDIS price limit
- Best for: People comfortable with bookkeeping and wanting maximum control
- Downside: Significant admin workload, risk of NDIA audit
What Supports Does the NDIS Fund?
The NDIS funds a wide range of disability-related supports. Here are the most common ones:
Daily Life Supports
- Support workers for personal care (showering, dressing, toileting)
- Help with household tasks (cleaning, cooking, laundry)
- Community access and social participation
- Transport to appointments and activities
Therapies and Capacity Building
- Occupational therapy, speech pathology, physiotherapy, psychology
- Behaviour support
- Support coordination to help you manage your plan
- Psychosocial recovery coaching for mental health conditions
- Skill-building programs (independence, cooking, budgeting)
Equipment and Home Modifications
- Wheelchairs, walkers, hoists, communication devices
- Home modifications (ramps, bathroom modifications, stair lifts)
- Vehicle modifications
- Low-cost assistive technology (e.g., smartphones with adaptive apps)
Housing
- Specialist Disability Accommodation (SDA) — purpose-built housing for people with high support needs
- Supported Independent Living (SIL) — shared accommodation with 24/7 support
- Individualised Living Options (ILO)
What the NDIS DOES NOT Fund
The NDIS doesn’t cover:
- Day-to-day living costs (food, rent, clothing)
- Medical treatment and medication (that’s Medicare)
- Mental health treatment (that’s Medicare/state health)
- Public education (that’s the school system)
- Child protection services
- Income support (that’s Centrelink)
- Gambling, alcohol, cigarettes, or anything unrelated to disability
Who Helps You Navigate the NDIS?
The NDIS can be complex — especially when you’re just starting. Fortunately, there are several people whose job it is to help you understand and use your plan.
Local Area Coordinators (LACs)
LACs are delivered by partners in the community (in Western Sydney, for example, this is Uniting). They help you understand the NDIS, apply for access, develop your first plan, and connect with community supports. LACs work with participants aged 9 and over.
Early Childhood Partners
For children under 9, Early Childhood Partners deliver the early childhood approach — providing information, advice, and early support without needing a full NDIS plan. Important changes are coming for children under 8 in 2026.
Support Coordinators
If support coordination is included in your plan, a support coordinator is your main guide for implementing your plan. They help you find providers, coordinate services, build your capacity, and manage complex situations. We cover this in detail in our support coordination guide.
Plan Managers
If your plan is plan-managed, a plan manager handles the financial side — paying invoices, keeping records, and tracking your budget. They don’t give advice on supports or coordinate services.
Advocates
Independent disability advocates can represent you, speak on your behalf, and help you challenge NDIA decisions. Advocacy services are usually free and funded by government.
NDIS Costs — What Providers Charge
The NDIS sets maximum prices providers can charge. Here are some common rates for 2025-26:
| Support Type | Maximum Hourly Rate |
|---|---|
| Standard Support Worker (Weekday) | $70.23/hr |
| Support Coordination Level 2 | $100.14/hr |
| Specialist Support Coordination (Level 3) | $190.54/hr |
| Occupational Therapy / Speech Pathology | $193.99/hr |
| Physiotherapy | $183.99/hr |
| Psychology / Behaviour Support | $232.99/hr |
These rates haven’t changed for support coordination in six years. See the full 2025-26 NDIS Price Guide for every rate.
What’s Changing in 2026 and Beyond
The NDIS is going through its biggest reforms since launch. Here’s what you need to know:
New Planning Framework
From mid-2026, the NDIA is rolling out a new way of creating plans, including “support needs assessments” that replace the old allied health reports. Read the full guide to NDIS planning changes 2026.
NDIS Navigators
The NDIS Review recommended replacing support coordinators, Local Area Coordinators, and psychosocial recovery coaches with a new unified role called Navigators. The transition is still being designed. Read about the Navigator model.
Thriving Kids (for Children Under 9)
From 1 October 2026, a new $4 billion program called Thriving Kids will support children under 9 with developmental delay or autism — outside the NDIS. Learn about Thriving Kids.
Access Changes for Children
From 1 January 2028, NDIS access will change for children under 8 with low-to-moderate support needs. Read our guide on the access changes.
SIL Mandatory Registration
From 1 July 2026, all Supported Independent Living providers must be registered with the NDIS Commission. Read our SIL registration guide.
Your Rights Under the NDIS
As an NDIS participant, you have important rights that underpin how the NDIS works for you:
- Choice and control — you decide which providers deliver your supports
- Freedom from abuse and neglect — protected by the NDIS Quality and Safeguards Commission
- Access to advocates — independent people who can speak up for you
- Dignity of risk — the right to take reasonable risks and make your own decisions
- Respectful treatment — from the NDIA, LACs, and all providers
- Right to complain — about providers or NDIA decisions, without losing your supports
- Right to review — of any NDIA decision you disagree with
If you feel your rights are not being respected, contact the NDIS Quality and Safeguards Commission on 1800 035 544.
Frequently Asked Questions
How does NDIS work for new applicants?
You apply by phone, form, or through a Local Area Coordinator. The NDIA has 21 days to decide eligibility. If accepted, you’ll have a planning meeting to discuss goals and supports. The NDIA then creates your plan, and you can start using funded supports.
How much money does the NDIS give you?
The NDIS doesn’t give you cash. It gives you a budget for approved supports. How much depends on your individual needs, goals, and the “reasonable and necessary” test. Amounts range from a few thousand dollars a year to hundreds of thousands for people with very complex needs.
Is the NDIS free?
Yes — there’s no cost to participants. The NDIS is funded by the Australian government and states/territories. You don’t pay fees, premiums, or co-payments for approved supports delivered within price limits.
How long does it take to get an NDIS plan?
The NDIA has 21 days to make an access decision, but it often takes longer to get a planning meeting and receive your first plan. Most people wait 2-4 months from application to receiving their first plan. Children under 9 can often access early childhood supports faster.
Can you be refused NDIS funding?
Yes. You can be refused access (if you don’t meet the eligibility criteria) or refused specific supports (if they don’t meet the “reasonable and necessary” test). You have the right to request an internal review within 3 months.
What’s the difference between the NDIS and the Disability Support Pension?
The Disability Support Pension (DSP) is a Centrelink income payment for people unable to work due to disability. The NDIS is a separate scheme that funds disability supports (not cash). You can receive both if you qualify for each.
Do I need a support coordinator?
Not everyone gets support coordination in their plan — it’s funded only if “reasonable and necessary” for your situation. Participants with complex needs, multiple providers, or difficulty navigating the system are more likely to receive it. If you believe you need it, ask at your planning meeting. Learn how to find a support coordinator.
How Centre of Hope Can Help
Understanding how the NDIS works is only the first step. The next step is making it work for you. At Centre of Hope, we help participants across Western Sydney and NSW navigate every part of the NDIS journey — from applying, to planning, to using your supports effectively.
We can help you:
- Understand your plan and what each category of funding covers
- Connect with the right providers for your goals and location
- Prepare for plan meetings and reassessments
- Manage complex situations — justice involvement, mental health, housing crises
- Build your independence and confidence over time
- Review your budget to make sure every dollar counts
Whether you need Level 2 support coordination, Level 3 specialist support, or psychosocial recovery coaching, we’re here to walk alongside you.
Your goals. Your plan. Our support.
📞 Call us: 0432 250 900
🌐 Visit: centreofhope.com.au
📝 Refer: Submit a referral
Disclaimer: This article is for informational purposes only and does not constitute legal, medical, or financial advice. Information is current as of April 2026. NDIS policies, eligibility criteria, and processes may change. Always refer to the official NDIS website for the most up-to-date information relevant to your situation.
