Published 14 November 2026. Information last checked 14 November 2026. NDIS funding rules can change, so check the NDIS website for the latest updates.
If you or your child use NDIS funding for occupational therapy or physiotherapy, it most likely comes from the Improved Daily Living part of your plan. From 1 October 2026, the NDIS is reducing these budgets by 10% when plans are created, reassessed or renewed. This guide explains what Improved Daily Living covers, what's changing and when, and practical ways to make your therapy funding go further.
What is Improved Daily Living?
Improved Daily Living (full name: Improved Daily Living Skills) is a category in the Capacity Building part of an NDIS plan. It funds therapy and assessments that build your skills and independence, such as:
occupational therapy
physiotherapy
speech pathology, psychology and other therapies
assessments and reports, such as a functional capacity assessment
It's different from Core supports (help with day-to-day tasks) and Capital supports (equipment and home modifications).
What's changing?
From 1 October 2026, the NDIS is reducing participant budgets in two categories:
Improved Daily Living Skills: reduced by 10%
Social, Economic and Community Participation: reduced by 50%
The reduction is applied to the funding in your plan. How much it affects you depends on how much of that budget you were actually using.
Some supports in these categories aren't affected, including hearing services, community nursing, customised technology such as orthotics, employment supports, high intensity supports and intensive behaviour supports. Occupational therapy and physiotherapy are not on the list of unaffected supports, so therapy funded from Improved Daily Living is included in the change.
Other parts of your plan aren't affected. That includes everyday supports at home, home and vehicle modifications, personal mobility equipment and Specialist Disability Accommodation.
When will it affect my plan?
The change doesn't apply partway through your current plan. It applies when your plan is:
created (new participants) or reassessed, from 1 October 2026
renewed, from 1 February 2027
The NDIS expects every plan with these supports to be updated by 30 September 2027. The NDIA will contact you before it happens: 2 to 3 months before a scheduled reassessment, or 60 days before a renewal. Your new plan will show your total funding and the amount available after the change.
Until then, you can keep using your current plan as normal.
Can I challenge the change?
The reduction itself isn't a reviewable decision. You can still ask for a plan reassessment or variation if there's been a significant and ongoing change in your needs or circumstances, such as your daily living abilities, living arrangements, schooling or work, or the support you get from family and carers. The funding reduction on its own doesn't count as a significant change.
There's a separate variation pathway for participants with high support needs who receive 24-hour funded supports. Your support coordinator or the NDIA can tell you whether it applies to you.
What about the new NDIS planning approach?
The NDIS will start moving participants to "new framework plans" from 1 April 2027. The funding reduction doesn't apply to new framework plans. More details on the transition are still to come.
How to make your therapy funding go further
You can't change the reduction, but you can plan for it.
Check your plan. Look at how much is in Improved Daily Living and how much you're using. If you have a plan manager or support coordinator, ask them for a summary.
Talk to your therapist early. Ask them to help you prioritise the goals that matter most, and plan session frequency around your budget.
Get your evidence ready before your reassessment. The NDIA still decides what's reasonable and necessary for you before the reduction is applied, so a clear progress report or updated assessment still matters. Read more in our guide to OT reports for a plan reassessment.
Ask for a home program. Exercises and strategies that family, carers, support workers or teachers can use between sessions help progress continue with fewer sessions.
See your therapist where it counts. Sessions at home, at school or in the community mean the strategies are practised where they're actually needed, and your therapist can share them with the people around you.
Remember equipment and home modifications are separate. Assistive technology and home modifications are funded from Capital supports, which aren't affected by this change. Your OT or physio can still help with the evidence you need.
Common questions
Is OT and physio funding being cut? If your therapy is funded from Improved Daily Living, the budget available in your next plan will be reduced by 10% once the change is applied to your plan.
Will my current plan change? No. The change applies when your plan is created, reassessed or renewed. You can keep using your current plan until then.
Can I ask for a review of the reduction? No, the reduction isn't reviewable. You can still request a reassessment or variation if your needs or circumstances have significantly changed.
Are equipment and home modifications affected? No. Assistive technology, personal mobility equipment and home modifications aren't affected.
Where to check for updates
This post reflects the information available on 14 November 2026. Parliament can still change these rules, and more details about new framework plans are due before April 2027. For the latest, check:
the NDIS news page: Changes to support budgets from 1 October
the Department of Health, Disability and Ageing: Funding changes for NDIS supports
Talk to us
If you're worried about how the change will affect your therapy, talk to your Rewired Therapy OT or physio. We can help you plan your sessions, set up a home program and prepare reports for your reassessment.
Learn more about our physiotherapy and occupational therapy services, contact us, or make a referral.
