NDIS Quarterly Report Q2 2025-26: Key Insights for Providers

The National Disability Insurance Agency (NDIA) has released its Quarterly Report for Q2 2025-26, covering the period from October 1 to December 31, 2025. This comprehensive report demonstrates significant progress across multiple dimensions of the NDIS, from participant outcomes and financial management to provider integrity and service delivery improvements. For NDIS providers, this quarterly report contains essential information about scheme performance, regulatory changes, and emerging trends that directly impact your business operations and compliance obligations.

The report reveals a scheme that is becoming fairer, more sustainable, and increasingly focused on delivering genuine outcomes for people with disability. As a provider, understanding these developments helps you align your services with the NDIA's strategic direction and anticipate changes to funding, pricing, and compliance requirements.

NDIA Performance Improvements

The quarterly report highlights substantial improvements in how the NDIA processes and manages participant plans. During this quarter, 97% of participant plans were approved within the service guarantee timeframe, demonstrating consistent operational excellence. For first plans—which are often the most complex to assess—the NDIA approved 92% within the 21-day target timeframe. This improved performance reduces delays for new participants entering the scheme and creates more predictable timelines for providers planning service delivery.

Hospital discharge processes have also improved significantly. More than half of hospitalised NDIS participants are now discharged on the same day they are medically ready, with the average discharge time reducing to 15 days. This represents substantial progress from the peak of 27 days in March 2023. For providers offering support to participants transitioning from hospital care, these faster discharge timelines mean shorter notice periods and greater need for flexible, responsive service delivery models.

The National Contact Centre achieved a 92% customer satisfaction rate, with 86% of enquiries resolved at the first point of contact. This high resolution rate indicates that the NDIA is becoming more efficient at handling routine enquiries, which may reduce the volume of escalations and complaints that providers need to address.

Measurable Improvements in Participant Outcomes

Beyond administrative efficiency, the report demonstrates that the NDIS is delivering genuine social and economic benefits for participants and their families. Children between school age and 14 years old showed improvements of 13 or more percentage points across all life domain measures. For younger children from birth to school age, improvements were recorded across all life domains, with parents and carers reporting the largest gains (7 or more percentage points) in choice and control, family life, and community participation.

These outcome improvements have significant implications for providers. They suggest that the NDIA's focus on person-centred planning and flexible funding is enabling participants to access services that genuinely improve their lives. Providers who can demonstrate clear outcome measurement and participant satisfaction are likely to attract more participants and secure higher funding allocations.

Community participation rates have increased substantially. For participants aged 15 years and older, participation in community and social activities increased from 34% at baseline to 41%. This shift towards community inclusion creates opportunities for providers offering community access, social participation, and employment support services. Young participants aged 15-24 have seen work participation increase by 14% from baseline to latest reassessment, indicating strong demand for employment support services.

Families and carers have also benefited, with paid employment among family members increasing from 47% at baseline to 53%. This suggests that improved participant support is enabling family members to maintain or increase their own employment, reducing the financial burden on families and improving overall household economic stability.

Strategic Focus on First Nations Peoples

The NDIA has endorsed a Statement of Commitment to Closing the Gap, outlining how it will fulfil commitments to First Nations participants, families, and communities. The agency is implementing the NDIS First Nations Strategy 2025-30 to ensure culturally appropriate service delivery. Key initiatives include engagement with First Nations organisations to develop an implementation plan by mid-2026, development of a cultural safety initiative, and creation of a First Nations market and sector development roadmap to be released in 2026.

For providers, this strategic focus creates both opportunities and obligations. Providers serving First Nations communities should anticipate increased scrutiny of cultural competency and safety practices. Those who can demonstrate genuine commitment to cultural safety and have established relationships with First Nations communities are well-positioned to expand service delivery in this growing area.

Expanding NDIS Access in Remote Australia

The NDIS is committed to serving all eligible Australians with disability, regardless of location. The NDIA and Services Australia operate mobile service centres that visit rural and remote areas, providing advice and information about the NDIS. During the quarter, 185 locations were visited. Additionally, two access clinics in remote communities in the Northern Territory and Queensland provided face-to-face support, including for early childhood approach and planning activities.

For providers in remote and rural areas, this expanded outreach creates opportunities to support newly eligible participants. However, it also highlights the challenge of service delivery in geographically dispersed areas. Providers should consider partnerships with mobile services and telehealth capabilities to serve remote participants effectively.

Ensuring NDIS Funds Are Used on Listed Supports

A significant regulatory change occurred in October 2024 when legislation was amended to ensure NDIS funds are used exclusively on listed NDIS supports. Participants were given 12 months to adjust—a deadline that passed on October 2, 2025. The NDIA is now providing guidance to help participants make informed decisions about accessing listed supports.

The report notes that whilst most businesses do the right thing, some use misleading or deceptive phrases such as "NDIS approved" or "100% NDIS funded." The NDIA is actively deterring misleading advertising to ensure participants have accurate information. For providers, this means strict compliance with advertising standards and clear communication about which services are NDIS-listed and which are not. Providers who have not yet updated their marketing materials should do so immediately to avoid regulatory action.

The NDIA published two new guidelines for the inclusion of short-term respite and therapy supports in NDIS plans. These guidelines clarify which respite and therapy services are eligible for NDIS funding and under what circumstances. Providers offering these services should review the new guidelines carefully to ensure their service offerings align with NDIA expectations.

New NDIS Planning Framework

One of the most significant developments outlined in the report is the introduction of a new NDIS planning process, set to begin in mid-2026. The new framework will focus on a person's disability support needs rather than functional impairment, reducing the need for expensive reports and creating fairer, simpler, and more flexible plans for participants.

This change represents a fundamental shift in how the NDIS assesses participant needs and allocates funding. Providers should begin preparing for this transition by understanding how the new framework will affect funding allocations and participant plans. The NDIA is working closely with governments and the sector to develop rules for the new framework planning. A new NDIS Design Hub has been established to bring together participants and NDIA staff to test and refine new planning tools, resources, and the participant experience.

For providers, this transition period creates both uncertainty and opportunity. Services that can demonstrate clear alignment with participant goals and disability support needs—rather than simply addressing functional limitations—will be better positioned to secure funding under the new framework.

Strengthening Integrity and Safeguarding Participants

The NDIA has implemented several integrity initiatives to detect, prevent, and respond to non-compliance and fraud. These include stronger identity checks on providers accessing NDIS provider portals, stronger identity and access controls to protect participant data and reduce identity fraud, and streamlined claims processing that allows staff to review more high-risk claims.

During the six months to December 2025, the NDIA reviewed over 34,000 high-risk claims totalling more than $110 million before they were paid. Sixty-six percent were rejected. This high rejection rate indicates that the NDIA's fraud detection systems are becoming increasingly sophisticated and effective.

For providers, this intensified scrutiny means that claims must be meticulously documented and clearly justified. The NDIA is embedding fraud detection into systems and processes, making it easier for compliant providers to get it right and harder for non-compliant providers to get away with non-compliance. Providers should ensure that all claims are supported by clear evidence of service delivery, participant attendance, and alignment with participant plans.

Financial Sustainability and Cost Growth

The NDIA's 30 June 2025 Annual Financial Sustainability Report (AFSR) shows that the growth rate of the NDIS is projected to reduce from 9.4% in 2025-26 to below 8% from 2026-27 onwards, consistent with the commitment made by National Cabinet in April 2023. Scheme expenses for the six months to December 2025 were $25.4 billion, with annual cost growth at 10.3% as of December 31, 2025.

This moderation in cost growth reflects the NDIA's success in managing scheme expenses whilst maintaining service quality. However, it also suggests that funding growth may be constrained in future years. Providers should plan for potentially tighter funding environments and consider strategies for improving operational efficiency and demonstrating value for money.

Pricing Review and Multi-Year Workplan

The NDIA is reviewing how NDIS price limits are set, guided by advice from the Independent Pricing Committee and consultation with the disability sector. Consultations began in November for the 2025-26 Annual Pricing Review, focusing on disability support worker supports, therapy supports, support coordination, plan management, and social, community and civic participation.

The NDIA has published its first multi-year NDIS Pricing Workplan, which sets out a staged program of pricing improvements. This workplan was developed in collaboration with the Department of Health, Disability and Ageing, and the NDIS Quality and Safeguards Commission. The workplan indicates that pricing decisions will be more transparent and predictable, with multi-year planning horizons that allow providers to forecast revenue more accurately.

For providers, this represents an opportunity to engage with the pricing review process and provide evidence about the true costs of service delivery. Providers who can demonstrate that current price limits are insufficient to maintain service quality should consider submitting evidence to the pricing review.

Participant-Focused Debt Management

The NDIA has implemented a new, participant-focused debt management approach following legislative changes and consultation. Legislative changes passed in 2024 now allow the NDIA to consider a person's disability when deciding whether to waive a debt. During the quarter, debts were revoked for 115 participants, and repayments made in 26 cases where errors occurred.

This more compassionate approach to debt management reflects the NDIA's commitment to fairness and accountability. For providers, it suggests that the NDIA is moving away from punitive approaches and towards collaborative problem-solving when issues arise.

Data Highlights and Participant Demographics

The report provides important demographic data on new NDIS participants. Of new participants who joined during the quarter, 10.7% identified as First Nations peoples, 8.5% identified as being from a culturally and linguistically diverse community, and 2.1% were living in remote and very remote areas. These demographic trends indicate growing diversity within the NDIS participant population, creating opportunities for providers who can serve culturally diverse and geographically dispersed communities.

Ninety-two percent of access decisions were made within 21 days, and 78% of participants meeting access criteria rated their experience with the NDIS application process as good or very good. These high satisfaction rates indicate that the NDIA is successfully making the application process more accessible and user-friendly.

Looking Forward

The NDIS Quarterly Report Q2 2025-26 paints a picture of a scheme that is becoming more efficient, more focused on genuine participant outcomes, and increasingly committed to fairness and integrity. For NDIS providers, this report signals several important trends: the need for stronger compliance and fraud prevention measures, the importance of demonstrating clear participant outcomes, the value of cultural competency and accessibility, and the opportunity to engage with the NDIA's evolving pricing and planning frameworks.

Providers who stay informed about these developments and adapt their services accordingly will be well-positioned to thrive in the evolving NDIS landscape. We recommend reviewing the full quarterly report and considering how the key developments outlined here affect your service delivery model, compliance obligations, and business strategy.

If you have questions about how these NDIS developments affect your provider business or need assistance with compliance planning, contact Primus Quality Services today. Our team of compliance experts can help you navigate these changes and ensure your organisation remains fully aligned with NDIA expectations and regulatory requirements.