06/09/2025
Plan Reassessments and Budget Cuts – Myth or Reality? ✂️
Few things strike more fear in participants (and families) than the prospect of a plan cut – getting less funding in a new plan than before. The NDIA publicly assures that there’s no blanket policy to reduce plans at review. Yet, many in the community (and our clients too) report seeing unexplained cuts to their supports during reassessment. So what’s going on? 🤨
• NDIA’s stance: Officially, the NDIA says there’s “no directive to cut plans” and each plan is set based on current needs, not cost targets. They often advise that if circumstances haven’t changed (or needs increased), funding should remain the same or go up. That’s the theory.
• On-the-ground experience: Contrasting that, we and other advocates (like Advocacy WA) have seen numerous cases of plan reductions. In fact, Advocacy WA gathered survey data in 2025 strongly suggesting plans are being cut more frequently. Participants who have stable or growing needs are puzzled to find less funding in their new plans, sometimes without clear justification. This discrepancy has been conclusive enough that it’s raised alarm in the community.
• Possible reasons: Why the disconnect? It might be due to broader budget pressures on the scheme – the NDIA is under government pressure to control costs, and planners might be interpreting “reasonable and necessary” more narrowly. In some cases, if a participant didn’t fully spend their last plan, the system might assume they can manage with less (even if underspending was due to lack of providers or personal circumstances, not lack of need). There’s also talk that the new PACE system automates some allocations, which might not capture nuances that a human would consider.
• What to do if it happens: Firstly, don’t panic! If you get a plan that seems inadequate, remember you have the right to request an internal review (within 3 months). We’ve had success helping participants challenge cuts through review processes. It’s crucial to provide updated evidence (therapist letters, support coordinator reports) showing why the previous funding was needed and how a cut will affect you. Also, engage your support coordinator or an advocate early – they can help frame the argument in NDIA language.
• Keep communication open: In our opinion, it’s wise to maintain open communication with your planner or LAC. If you sense during your plan meeting that they might reduce something, ask questions: “Why do you think I need less therapy hours?” Sometimes clarifying misunderstandings on the spot can prevent a cut. If not, at least you’ll have clues for your review application.
• Mental health impact: We’ve seen the stress these cuts cause. Participants who receive a reduced plan often feel anxious or devalued, worrying they won’t reach their goals. As a provider, we empathize deeply. We hope NDIA leadership truly heeds the feedback and ensures consistency – if there’s truly no intent to cut overall costs, that message needs to trickle down into actual planning decisions.
Our opinion: Where needs haven’t changed (or have increased), cuts should not be happening. Period. If they do, it’s likely a mistake or oversight. We encourage participants to politely but firmly challenge unjustified reductions – with evidence and support. The NDIS is meant to be individualized; funding should follow need, not an arbitrary quota. We stand ready to help anyone navigate this, so you don’t lose critical supports. 💪🏼
