A guide to what the NDIS is and how it works.
The National Disability Insurance Scheme (NDIS) is an Australian Government scheme that provides supports and services to eligible people with permanent and significant disability to help them achieve their goals.
More than 781,000 people benefit from the NDIS, including 162,781 children under the age of nine. The scheme was established in 2013 and rolled out across Australia by 2020.
The NDIS funds supports considered ‘reasonable and necessary’, with strict criteria around what participants can and can’t purchase using their NDIS Plan. It also includes the Early Childhood Approach for children aged 0-9. Supports funded vary from person to person based on their goals, needs and circumstances.
What is the difference between the NDIS and the NDIA?
The NDIS is the scheme that provides disability-related supports and funding to eligible Australians. It is governed by the National Disability Insurance Scheme Act 2013 and supporting NDIS rules.
The National Disability Insurance Agency (NDIA) is the Australian Government agency responsible for administering the scheme and applying these laws and rules. It manages the NDIS, assesses eligibility, approves NDIS Plans and decides on the funding included in each plan.
The NDIS is changing.
Changes to the NDIS are rolling out between 2026 and 2030. They cover many aspects of the scheme, including who can access the NDIS, how budgets are determined, how NDIS Plans are developed and what participants can spend their plan funding on.
For more details, see Your complete guide to the NDIS changes.
How does the NDIS work?
Eligible participants receive funding through a personalised NDIS Plan, a document that outlines your goals, the amount of funding you have received and how it can be used.
The plan is based on your disability-related support needs and will typically last for 12 months.
NDIS funding is divided across several different support categories. It is intended to help you achieve your goals and can’t be used for everyday living expenses unrelated to your disability, such as rent or groceries.
For information about eligibility see What are the NDIS eligibility requirements?
Paying for supports with an NDIS Plan.
When you purchase an NDIS support, the provider will usually issue an invoice and the cost will be claimed from the relevant budget. This may include services such as physiotherapy or support work, as well as assistive technology that helps you manage the impact of your disability.
How the provider is paid depends on how your funding is managed:
- If your funding is NDIA managed, a registered provider claims payment directly from the NDIA
- If your funding is plan managed, the provider sends the invoice to your plan manager, who claims the funds and pays the provider
- If your funding is self-managed, you are responsible for paying the provider and claiming the money through the NDIS portal.
You can use one management method across your entire plan or different methods for different budgets. Your choice affects which providers you can use and how much responsibility you have for invoices, payments and financial records.
Types of supports the NDIS may fund.
The NDIS funding criteria and support lists explain what the NDIS will and will not fund. It will only fund supports that relate to your disability, are considered reasonable and necessary and meet all NDIS funding criteria. See What are NDIS supports?
- The NDIS support lists outline which supports you can and cannot purchase with your funding.
- Some support categories are flexible. This means you can use the funding for different NDIS supports within that category, provided they meet the relevant rules.
In some cases, you can only purchase supports specifically stated in your plan. Some may require a quote or documents from a treating professional, such as an occupational therapist.
Who's who in the NDIS?
You may come across different people and organisations when applying for the NDIS or using your plan. Here’s a brief summary of the common roles, what they do and how they’re funded.
| Who | What they do | How are they funded? |
|---|---|---|
| my NDIS contact | Your main point of contact for the NDIS. This may be an NDIA planner, Local Area Coordinator or Early ChildhoodPartner. | There is no cost to you. This is an NDIA or NDIS partner role, not a support paid for from your plan. |
| Local area coordinator (LAC) | Helps people understand and access the NDIS, connect with local services and prepare for plan meetings. An LAC may also be your my NDIS contact. | LAC services are funded by the NDIS and do not come from your plan funding. |
| Early childhood partner (ECP) | Supports families with children younger than nine who have a disability, and families with children younger than six where there are concerns about their development. Connects families with early childhood supports and helps them apply for the NDIS where appropriate. | Early Childhood Partners are funded by the NDIS and do not come from a child’s plan funding. |
| Support coordinator | Helps you understand and use your plan, find suitable providers and coordinate your supports. | Paid from support coordination funding in your plan, if it has been included. |
| Plan manager | Handles the financial administration of your plan, including paying provider invoices, keeping records and helping you track your budgets. | If you choose plan management, funding is included in your plan to cover the cost. There is no cost to you. |
| Support worker | Provides practical assistance based on your needs and goals. This may include personal care, assistance with household tasks, accessing the community or building independence. | Paid from the relevant support budget in your NDIS Plan. |
What is an NDIS provider?
An NDIS provider is an individual or organisation that delivers supports, or offers services to people with NDIS Plans. Providers can include independent support workers, allied health practices, charities that deliver disability services and online stores selling consumables or assistive technology.
There are two types of NDIS providers:
- Registered providers: Businesses or individuals registered with the NDIS Quality and Safeguards Commission. They must meet specific quality and safety standards and can provide supports to NDIA managed, plan managed and self managed participants.
- Unregistered providers: Business or individuals that have not completed the NDIS registration process. They must follow the NDIS Code of Conduct but can only be used by plan managed or self managed participants.
You choose the providers you want to work with and arrange services directly with them. Some types of supports must always be delivered by a registered provider. The NDIS is also moving towards mandatory registration for more types of providers.
Want to find out more about the NDIS?
NDIS FAQs.
Here are some of our members most commonly asked questions about how the NDIS works.
If you turn 65 after you join the NDIS, you can choose to stay with the NDIS or leave the NDIS and receive supports through the Commonwealth Aged Care System. If you decide to obtain supports through the aged care system, you must notify the NDIS in writing that you no longer wish to be on the NDIS.
A goal is something you want to achieve or aim for. In the NDIS, goals are like roadmaps that help guide you towards what you want to achieve. Each NDIS goal is a statement of intention that provides a clear direction and purpose, helping you stay focused. These goals give the NDIS information about what’s important to you and what you want to do in life. For an NDIS Plan to be approved, it must include at least one goal. For inspiration, visit the Goal Tracker section of the Leap in! app.
- Age: From 0 to 64 (children under 9 are supported through the early childhood approach)
- Residency: Live in Australia and an Australian citizen, permanent resident or hold a Protected Special Category visa
- Meet the disability or early intervention requirements, or both.
- You have a disability related to a permanent impairment, or have a psychosocial disability caused by a permanent impairment
- Your permanent impairment will significantly impact your life and your ability to do everyday tasks
- You’ll likely need NDIS supports for your lifetime.
- You have an impairment, or a psychosocial disability caused by an impairment, that’s likely to be permanent, or be a child younger than 6 with developmental delay
- The early intervention supports you need will reduce your need for support in the future, improve your functional capacity or prevent it from getting worse, and be NDIS supports.
Reasonable and necessary is the criteria the NDIS uses to decide which supports and services will be funded in your NDIS Plan.
All supports paid for with NDIS funds must meet all the reasonable and necessary criteria:
- Be related to your disability
- Help you pursue the goals in your plan
- Support your social and economic participation
- Be value for money
- Be likely to be effective and beneficial
- Complement informal and mainstream supports
- Be an NDIS support or agreed replacement support for you.
- Vary your current plan if only small changes are required
- Continue your current plan for another 12 months (before 1 February 2027)
- Create a new plan with different supports.
- Before February 2027: The NDIS may continue your existing plan for 12 months. Your Core and Capacity Building funding will generally remain the same, with indexation applied, and any unspent funding will remain available in the continued plan.
- From 1 February 2027: A renewed plan will be created when a plan reaches its reassessment date. Unused funding from the old plan will no longer automatically carry over and the renewed plan may have minor to no changes from your previous plan.
The NDIS early childhood approach is for children younger than 6 with delays in their development, or younger than 9 with disability, and their families. It aims to support young children to build skills, take part in daily activities and be included in their community.
Early Childhood Partners (ECPs) are local organisations that implement the early childhood approach, connecting children and their families to mainstream (non-NDIS) supports, NDIS supports or a combination of both.
Children don’t need a diagnosis to get support. Children who don’t fully meet the definition of developmental delay but have developmental concerns can also receive support.
If you have concerns about your child’s development, contact your doctor, maternal and child health nurse, or other health professional. Your healthcare professional may connect you with an NDIS early childhood partner.
If there is evidence that your child has an impairment that is or is likely to be permanent, or is younger than 6 and has developmental delay, they may be eligible for the NDIS. Early childhood partners or NDIA staff can help you to apply.
- Call the NDIS on 1800 800 110
- Submit an enquiry via the NDIS Service Hub
- Write to the CEO, NDIA, GPO Box 700, Canberra ACT 2601
- Visit an NDIS office
- Send a completed Request for a review of a decision form.