In September 2024, the NDIA established the Independent Pricing Committee (IPC) to reform NDIS pricing. Its goal is to assess how well the current pricing model works and explore more effective alternatives.
Why change?
The existing capped pricing was a short-term measure to attract providers and ensure value for participants. However, the model needs to evolve for long-term sustainability.
Proposed pricing reforms:
- Tiered Pricing:
- Standard Price Limits: For most participants.
- Higher Prices: For services with complex needs or higher risk.
- Alternative Group Pricing: For services shared among participants or not tied to individual delivery time.
- Commissioned Services: NDIA/government directly commissions providers (e.g. in rural areas).
- Fixed Cost Services: Pricing for services requiring large upfront investment but low ongoing costs.
Impact on Specific Services:
- Therapy: Tiered pricing could better support high-value therapies.
- Support Coordination: Major changes on hold until the role of future “navigators” is clarified.
Other Strategic Ideas:
- Digital payments platform
- E-marketplace and price comparison tools
- Regional NDIS spending transparency
- Scheduling software for providers
- Reduced compliance burden
- Early price change guidance
- Cross-sector collaboration
Looking Ahead:
The IPC cautions against short-term price hikes, warning it may strain providers and increase sole trader numbers. Any major reform will be rolled out carefully.
