NDIS Pricing Changes Confirmed for July 1: What Allied Health Providers Should Do Now
The 2025–26 NDIS Pricing Arrangements and Price Limits (PAPL) are officially live, and the changes will take effect from 1 July 2025.
There are strong advocacy efforts underway to reverse or soften these changes – and they matter. But for now, these price limits are confirmed. Providers must plan based on the published PAPL, not on the hope that changes will be delayed or overturned. The businesses that act now will be far better positioned, regardless of the outcome.
For context, I was a Director of an Allied Health provider with over $15 million in annual revenue and a fortnightly payroll of $350,000+. I know how tough this moment is — for owners, for teams and especially for participants. I know the feeling of sleepless nights thinking you’re not going to make payroll. These aren’t easy changes to navigate. My goal here isn’t to downplay that, but to offer clear, practical actions that providers of all sizes can take right now to stay viable and support their communities.
For most Allied Health providers, these updates are significant and will have immediate financial impacts. Mobile clinicians, in particular, face substantial revenue challenges. The sector has had less than a week to digest the Annual Pricing Review (APR), but now that the final PAPL confirms the direction, it’s time to act.
This article outlines what you can do over the next two weeks to protect your business, adjust operations, and support your team through the transition.
What’s Changing from 1 July 2025?
The following changes from the APR have been confirmed in the new PAPL:
Travel is now billable at 50% of the hourly rate
Hourly rates for Physiotherapy, Dietetics, and Podiatry have been reduced
Psychology rates have increased
State-based loadings for WA, SA, NT and TAS have been removed (for Physio and Psych)
The proposed 10-minute billing increment model was not adopted. Providers should continue billing in decimal hours (e.g. 0.75 units for 45 minutes)
View the full PAPL here: NDIS Pricing Arrangements and Price Limits
Review Your Actual Revenue Breakdown
Use either your financial or practice management system to assess:
How much of each clinician’s revenue currently comes from travel vs face-to-face services
What that travel revenue looks like under the 50% cap
Which roles or locations will fall below breakeven when the new rates apply
This should be a data-driven review, not just a gut check. Clinicians in regional and mobile roles are most at risk.
Want a simple breakdown of the numbers and revenue modelling? Read last week's blog here: NDIS APR 2024-25: The Real Cost for Allied Health
Adjust Caseloads and Consider Redesigning KPIs
Many providers will need to restructure clinical schedules and performance expectations. Key tactics include:
Re-clustering client visits to reduce total travel time
Introducing new productivity KPIs (e.g. 1 hour of travel = 0.5 billable hours)
Shifting high-travel clients to hybrid or remote service formats
Reassigning or consolidating mobile visits where clinically appropriate
Even a small improvement in billable efficiency can make a major difference under the new pricing structure.
Reassess Costs and Service Mix
Your existing service model may not remain viable. Use this as a moment to review:
Margins by discipline (some will remain profitable; others may not)
Clinician salaries vs. achievable revenue under new limits
Admin staffing, office/clinic space and technology costs (e.g. software, subscriptions, devices)
Whether diversification makes sense for your business
Some providers may also need to reduce delivery in areas that are no longer financially sustainable.
Inform and Equip Your Team
You need your team aligned and aware before July 1. Make sure to:
Brief all clinicians on confirmed changes
Reinforce how KPIs and targets may shift
Educate your team on upcoming pricing changes, including how travel billing rules are shifting from July 1.
Update dashboards or templates to reflect new pricing logic
Help them understand the why - this is about sustainable service, not just cost-cutting
Clinical buy-in will be key to operationalising any strategy.
Tighten the Levers You Can Control
Before considering structural changes or salary cuts, make sure you’ve addressed these basics:
Charge travel accurately: Many providers still underbill. From 1 July, it’s essential to consider:
Bill for both directions of travel (not just one-way)
Include non-labour travel costs like kilometres
Avoid rounding down or estimating conservatively — accuracy protects revenue
Cut non-essential overheads: Review back-office functions, rent, tech tools and subscriptions
Avoid cutting clinician pay unless essential: CPD, incentives and pay are crucial for morale and retention. Consider this a last resort after exhausting other levers.
Think Beyond July 1 – Medium-Term Diversification Options
This moment is also an opportunity to assess whether you're overly reliant on NDIS funding or one type of service.
Some longer-term diversification strategies include:
Add other funding streams: e.g. Aged Care (Support at Home), Insurance, Medicare, Private clients
Expand into other disciplines: More change is coming. Diversifying your service mix now can reduce your exposure to future pricing volatility.
Reducing your exposure to any one fee schedule builds resilience.
Read the IPC Report – What Comes in the Future?
While the PAPL changes are locked in for now, the Independent Pricing Committee (IPC) Report released alongside the APR offers a glimpse of what’s coming next.
It outlines a longer-term vision for structural reform — including differentiated pricing tiers, outcome-aligned payments and changes to what’s considered billable.
Key proposals flagged include:
Tiered pricing based on service complexity and provider capability
New pricing categories for group-based, commissioned and infrastructure-heavy supports
Pre-qualification requirements to access higher price limits
Greater price transparency tools like comparators and marketplaces
Unbundling of planning, supervision and overheads from hourly pricing
Not all of this will happen immediately. But if you’re thinking about future-proofing your business, this is where to start:
What You Should Do This Week
If you only have time for three things, make it these:
Model your data – revenue, travel ratios and caseload efficiency
Adjust your structure – cluster, reassign and reduce travel where possible
Talk to your team – explain what’s happening and what’s expected
Want Support?
If you’d like help running the numbers, reviewing your data, adjusting your service delivery model or you’re thinking about diversifying, you can book a free 20 minute strategy call:
