17/06/2025
With the release of NDIS' most recent price guide and the *freeze* of hourly rates for occupational therapists and speech pathologists, we appreciate this post by Alaskah OT that delves deeper into the reality of what this looks like for small businesses.
As of July 1, 2025, the NDIS has set the maximum hourly rate for occupational therapy services at $193.99.
But this figure doesn't account for the full picture. When you factor in essential overheads—like administrative support, clinic rent, insurance, and professional development—the actual cost to clinics often surpasses this rate.
These pricing constraints, while aiming for affordability, can strain private providers, potentially impacting service availability and sustainability.
🔍 Why It Matters: Understanding these costs is crucial for appreciating the challenges faced by private clinics and the importance of sustainable funding models to ensure continued access to quality occupational therapy services.
Re-uploaded as I was made away of an error in the previous post!
How much does it cost an allied health provider (with staff and a clinic location) to deliver 1-hour of therapy?
💸 Where does the $193.99 NDIS hourly rate actually go? Here is a graph that I made based upon a recent research study conducted by Ability Roundtable.
Let’s talk real numbers for delivering 1 hour of therapy in 2024–2025 👇
According to Ability Roundtable (2023), It is estimated that the actual cost to provide an hour of therapy is $219.11/hour — but the NDIS price limit is still stuck at $193.99/hour.
Here’s where that money goes:
• $48.57 – Average therapist’s base salary
• $10.91 – Salary-related costs (staff super, leave, payroll tax)
• $7.62 – Other salary oncosts
• $19.16 – Non-service level staff (admin team, management team)
• $59.61 – Utilisation (costs associated with provision of quality supports, supervision structures and offering supervision support, non-billable administration and preparation time, costs associated with governance and safeguarding, seasonal demand (e.g. reduced work in school holidays)
• $10.26 – Service delivery costs (equipment, assessments, materials)
• $50.89 – Corporate overheads (insurances, registration, workers comp)
• $8.11 – Pre-tax margin (aka “profit” — before tax or reinvestment.. if this isn’t eaten up by something else 🤷🏼♀️)
That’s a $25+ loss per hour MINIMUM. It’s not about greed. We are fighting for sustainability — for therapists and for the families we support.
