Understanding the NDIS Pricing Changes: Key Insights for Providers

What Has Changed in the NDIS Provider Pricing Arrangements?

The NDIA has updated the PAPL and related guidance documents to keep pricing aligned with policy and ensure value for participants. These changes apply nationwide starting 24 November 2025. Here are the main points providers need to focus on:

1. Art and Music Therapy Price Limits Reduced

The maximum hourly rate for art and music therapy has dropped from $193.99 to $156.16. This adjustment follows an independent national review that assessed the value and usage of these therapies. The goal is to align these supports with other therapy pricing and ensure participants receive cost-effective services.

What providers should do:

• Review your current rates for art and music therapy.

• Update your price lists and service agreements to reflect the new caps.

• Adjust financial forecasts for participants who were charged near or at the previous maximum.

• Communicate changes clearly with clients and subcontractors to avoid confusion.

  
  

2. Tighter Rules for “Other Professional” Line Items

The NDIA has clarified when providers can claim “Other Professional” support items. These must now better match the recommendations from the Art and Music Therapy review. Essentially, “Other Professional” should only be used when no more specific profession category fits the service provided.

What providers should do:

• Audit your current claims under “Other Professional” categories.

• Ensure each claim aligns with the updated guidance and is justified.

• Train your billing and administrative teams on the new rules to prevent claim rejections.

• Update service agreements to specify correct service categories.

  
  

3. Changes to Service Agreement Requirements

The updated pricing arrangements emphasize clearer and more detailed service agreements. Providers must ensure agreements reflect the new pricing limits and include transparent information about fees and cancellations.

What providers should do:

• Review and revise all existing service agreements before 24 November 2025.

• Include updated pricing, cancellation policies, and participant rights.

• Use plain language to improve participant understanding and consent.

• Train staff on explaining these agreements during onboarding and reviews.

  
  

How These Changes Affect Your Organisation’s Compliance and Audit Readiness

The NDIS Quality and Safeguards Commission expects providers to be fully compliant with pricing and documentation requirements. The new PAPL updates increase scrutiny on pricing accuracy and service categorization.

Key compliance actions:

• Conduct internal audits of pricing and claims to identify discrepancies.

• Document all changes made to pricing and agreements.

• Keep clear records of communications with participants about pricing changes.

• Prepare your team for potential audits by updating training materials and processes.

  
  

Practical Steps Providers Can Take Now

Preparing early will help your organisation avoid last-minute stress and financial surprises. Here’s a checklist to guide your preparation:

• Update Pricing Structures: Adjust your fee schedules to match the new limits, especially for art and music therapy.

• Revise Service Agreements: Ensure all agreements reflect updated pricing and cancellation terms.

• Train Your Team: Hold training sessions for billing, administration, and frontline staff on the new rules.

• Communicate with Participants: Inform participants about pricing changes and how these affect their plans.

• Review Subcontracts: If you subcontract services like art or music therapy, renegotiate rates and contracts accordingly.

• Audit Your Claims: Review past claims for compliance and correct any errors before the new rules take effect.

• Monitor NDIA Updates: Stay informed about any further guidance or clarifications from the NDIA.

  
  

What Providers Should Avoid

• Don’t delay updating your pricing and agreements until the last minute.

• Avoid using “Other Professional” claims without clear justification.

• Don’t leave your team uninformed about the changes.

• Avoid confusing participants with unclear or outdated information.

  
  

Looking Ahead: Staying Prepared Beyond November 2025

The NDIS pricing landscape will continue to evolve. Providers who build strong compliance habits now will be better positioned to adapt to future changes. Regularly reviewing pricing, agreements, and training will keep your organisation audit-ready and financially sustainable.

In conclusion, as we prepare for the upcoming changes, it is crucial to stay informed and proactive. By understanding the implications of the updated Pricing Arrangements and Price Limits, we can ensure that our services remain compliant and beneficial to participants. This approach will ultimately enhance the quality of care we provide and support our mission to navigate complex regulations effectively.