NDIS funding reset from 1 October 2026: what changes for community participation and daily living budgets

Announced in the 2026-27 Budget, a reset to two specific parts of NDIS plan funding takes effect from 1 October 2026. It doesn't touch every support, and it doesn't hit every participant at once - but if it applies to your plan, the numbers are significant. Here is exactly what changes, according to the Department of Health, Disability and Ageing.

What's actually being reduced

Only these two budget lines are affected. Core supports like personal care and in-home support, Supported Independent Living, and other Capacity Building categories outside improved daily living skills are not part of this reset.

It doesn't happen all at once

The reset isn't applied to every plan on 1 October. According to the Department's guidance, it rolls out gradually over 12 months from that date, applying to a participant's plan only when it is created, reassessed or renewed. If your plan isn't due for reassessment, you keep using your current budget and supports until it is - the change doesn't retroactively cut a plan mid-cycle. Participants are meant to be notified ahead of their own reassessment or renewal.

Who is protected from it

Specific protections were written into the amended bill for participants who need continuous 24/7 support, those using complex behaviour supports, high-intensity supports, or customised assistive technology. If you fall into one of those categories, the reset is not meant to apply to your plan in the same way.

What this means in practice

For a participant who relies on community participation funding for social outings, group programs or day-to-day support to be active in their community, a 50% reduction at reassessment is a real drop in what's available - worth planning for well before your own reassessment date arrives, not after. Talking to your support coordinator or plan manager now about how your specific supports are categorised, and whether any of the protections above apply to you, is worth doing ahead of time rather than finding out at your next plan review.

This article is general information, is dated 29 September 2026, and reflects reporting available at that time. It is not affiliated with or endorsed by the NDIA. The reset is rolling out gradually and how it applies depends on your individual plan - for advice about your own circumstances, speak to your planner, plan manager or an independent advocate, and verify current requirements at health.gov.au.