The NDIS is changing rapidly. In response to the 2023 Review, several reforms are already in place, with additional ones anticipated throughout 2025 and beyond. Understandably, many providers feel uncertain about what these changes mean and how to keep up with them.
This blog breaks down what’s changed, what’s coming, and how providers can stay compliant in this evolving environment.
Where we’re at: Key NDIS changes already in effect
New definition of NDIS supports (since October 2024)
In October 2024, the NDIS introduced a new, more structured definition of what qualifies as an NDIS support. Participants are now required to use their funding only on items and services listed in the official NDIS supports list. A corresponding non-NDIS supports list makes it clear which expenses cannot be claimed under the scheme.
To support flexibility in exceptional circumstances, a replacement support rule has been introduced. This allows for limited substitutions, such as when an approved support is unavailable or when an alternative may better meet a participant’s needs.
A 12-month transition period is in place to help participants and providers adjust to the new rules, with minor errors during this time unlikely to result in compliance action.
Funding management rules (since March 2025)
In March 2025, new funding management rules came into effect to strengthen how the NDIA assigns and monitors plan management responsibilities. These rules clarify the process the NDIA must follow when determining whether a participant can self-manage or use a registered plan manager.
Under these reforms, the NDIA must assess several risk factors before approving a plan management type, including:
- Whether the participant or their chosen representative has demonstrated financial competence
- Compliance with NDIS rules and regulations
- Patterns of spending that raise concern
The NDIA also has clear guidance about what cannot be considered, such as the nature of a participant’s disability or the value of their funding.
Notably, the NDIA now has the authority to change a participant’s plan management type if a risk is identified.
Plan variations and reassessments
The way participants plan and reassess has also changed. New rules introduced in early 2025 give the NDIA more structured powers to vary a plan in response to emerging risks or changing circumstances, without waiting for a complete reassessment process.
For providers, this means being ready to respond to changes in a participant’s funding or supports at shorter notice. Services may need to be adjusted more frequently, and close communication with participants will be essential to maintain continuity of care. The reassessment process itself has also been refined to give participants greater clarity and to ensure their plans remain appropriate over time.
What’s coming next: July–December 2025 and beyond
Mandatory registration for SIL, platform providers and support coordinators
A significant shift is on the horizon, with mandatory registration soon to apply to a broader range of NDIS providers. Following the public consultation, which closed in March 2025, the NDIS Commission has confirmed that providers delivering Supported Independent Living (SIL), online platform-based services, and support coordination will soon be required to register. Implementation is expected to begin in late 2025 and continue into early 2026.
This change will bring thousands of currently unregistered providers under the regulatory framework for the first time. While the goal is to strengthen participant safeguards and service quality, the transition will require providers to meet a range of new obligations.
These include:
- Adherence to the NDIS Practice Standards
- Compliance reporting
- Audit requirements
Providers currently operating outside the registration system should begin preparing now by reviewing their governance, documentation, and NDIS training practices.
Updated NDIS Practice Standards
The NDIS Practice Standards are being updated to reflect changing expectations around provider responsibility, particularly in SIL environments. New standards, currently under development following extensive consultations in 2024, are expected to establish clearer benchmarks for participant safety, clinical governance, and support quality.
A key focus of these updates is on clarifying the roles and responsibilities of providers delivering SIL and Specialist Disability Accommodation (SDA). The changes aim to reduce confusion and improve coordination between services, while also ensuring participants receive safe, consistent, and person-centred care.
For SIL providers, both existing and newly registering, this means reviewing current policies and procedures to ensure alignment with the updated standards.
Funding period adjustments (s33 Determination)
Another change already underway is the introduction of quarterly funding cycles for many participants. Under the Section 33 Determination, the NDIA is transitioning away from providing full-plan funding upfront and instead issuing funds in shorter, more controlled periods.
This shift is designed to reduce the risk of overspending, enhance financial oversight, and enable more responsive plan management. However, it also means that providers need to adapt their operations, particularly in areas such as service scheduling, budgeting, and claims processing.
For providers, these rolling funding cycles require greater agility in managing participant supports and ensuring that services align with the available budget for each quarter. Stronger coordination, more transparent communication with participants, and robust internal compliance systems will all be essential for a smooth transition.
Real-world consequences of non-compliance
In January 2025, the Federal Court imposed a $1.9 million penalty on Valmar Support Services Limited after a breach that contributed to the tragic death of a participant. The provider was found to have failed in key areas, including mealtime management, staff training, and incident documentation.
The NDIS Commission has made it clear that enforcement is increasing. Providers can expect more audits, greater scrutiny, and tougher consequences for breaches of the NDIS Practice Standards.
For providers, ensuring that staff are correctly trained, documentation is complete and up to date, and policies align with current standards is no longer optional. It is essential to protect participants, safeguard your organisation, and demonstrate that your services meet the expectations of a maturing regulatory environment.
How providers can prepare (mid–late 2025)
Track the legislation and consultation outcomes
Staying informed is the first step toward staying compliant. With ongoing changes to NDIS regulations and standards, providers must regularly monitor updates from the Department of Social Services (via DSS Engage) and the NDIS Commission’s reform hub. These platforms provide the most reliable and up-to-date information on upcoming rules around registration, reporting requirements and eligible supports.
Keeping a close eye on legislative developments allows providers to anticipate changes rather than react to them. It also helps ensure that your organisation is ready to implement new requirements as they are introduced, minimising disruption to participants and reducing your risk of non-compliance.
Audit your current systems
Now is the time for providers to assess their internal systems, policies, and procedures critically. Start by reviewing whether your operations align with the updated NDIS Practice Standards, particularly in high-risk areas such as participant safety, mealtime management, and documentation.
Ask yourself: Are staff fully trained in their compliance responsibilities? Are your records current, complete, and ready for audit? Is your incident reporting system robust and in line with Commission expectations? Identifying gaps now gives you time to act before new regulations are enforced more broadly.
Prepare for mandatory registration
For providers who are not currently registered, preparation is critical. Mandatory registration is expected to roll out from late 2025, and meeting the Commission’s requirements will involve more than just submitting an application.
Unregistered providers should begin strengthening their governance, refining documentation, and ensuring their workforce is trained and qualified in line with NDIS regulations and standards. This includes preparing for third-party audits and demonstrating compliance with the NDIS Code of Conduct and Practice Standards.
Starting early means avoiding rushed changes and giving your organisation the best chance of a smooth transition into the registered provider space. It also signals to participants, partners and regulators that you are committed to quality, safety and long-term sustainability.
Future-proofing your organisation with iinduct
Staying compliant in a changing NDIS environment requires more than awareness; it requires the right systems to keep your team informed, your records audit-ready, and your operations efficient. Here’s how iinduct is purpose-built to help providers do precisely that.
Keep staff training up to date
With iinduct, you can deliver automated compliance training across your entire workforce. Ready-to-go modules cover key areas such as mealtime management, incident reporting, and participant safety, helping you meet NDIS Practice Standards without having to start from scratch.
Track progress and certifications
Training completions and certifications are automatically recorded, giving you a clear view of who’s up to date and who needs a refresher. This saves time and gives you confidence when preparing for audits or meeting registration requirements.
Manage NDIS rule changes centrally
As NDIS rules and regulations evolve, iinduct makes it easy to update policies, share new procedures, and ensure all staff receive the latest information. Everything is managed in one place, eliminating the need to chase emails or deal with version control issues.
Stay audit-ready
With built-in audit trail features, document storage, and customisable workflows, iinduct helps you maintain accurate records and demonstrate compliance when it matters most.
Final thoughts
With more NDIS reforms on the way, now is the time to act, not wait. The pace and scope of change mean that staying informed and proactive is essential for every provider, whether you’re already registered or preparing to be.
Compliance is no longer just about avoiding penalties. It’s about protecting the people you support, building trust with families and regulators, and ensuring your organisation is equipped to thrive in a more accountable NDIS environment.
At iinduct, we’re here to help you navigate these changes with confidence. By embedding iinduct into your operations, you’re not just meeting today’s requirements; you’re building a stronger, more resilient organisation ready for the future. Book a demo to start future-proofing your business.
