A warning for the public health system as further NDIS cuts loom

Peak industry and professional bodies have sounded the alarm on upcoming changes to the NDIS, warning they would put additional strain on the public health system.


The proposed changes announced less than a fortnight ago would see travel subsidies for allied health professionals providing services as part of NDIS plans cut by half in the new financial year.

The Australian Physiotherapy Association, Dietitians Australia, Australian Podiatry Association, Australian Psychological Society, Australian Association of Social Workers and Behaviour Supports Practitioners Australia and others have called on the Federal Government to review its latest NDIS pricing recommendations.

Rural Health West, which works to ensure people living in regional areas have access to medical and health services, has stepped beyond its remit to join that call.

Pilbara Therapy Services, a family-run regional provider that supports more than 300 NDIS participants across the Pilbara, said the changes would make it financially unviable to continue the outreach work it does in communities like Onslow and Bindi Bindi, where it is often the only face-to face allied health provider.

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“We’re a team of 28 clinicians operating on a thin profit margin. The decision to reduce travel reimbursements by 50% and slash physiotherapy prices with only two weeks’ notice will significantly impact rural services like ours,” a spokesperson said.

“If our business is forced to reduce services, our clients will turn to the public health system – which is already under strain. That’s not good for participants, communities, or taxpayers.”

Rural Health West chief executive Professor Catherine Elliott said the organisation had heard concerns from a number of rural providers of NDIS related services across the state.

“Many rural health professionals already face significant cost and workforce pressures. The proposed NDIS changes disproportionately penalise rural service models that rely on travel, flexibility, and multidisciplinary team-based care,” she said.

“If rural allied health providers become unsustainable under the revised model, we risk losing services that underpin not only disability care, but broader chronic disease programs, paediatrics, women’s health, and aged care in rural WA.”

“If NDIS funding becomes less viable, the result may not only be fewer disability services – but also a reduction in the broader healthcare services available to rural communities.”

Rural Health West is not the only organisaton to express concern about potential flow on effects of the funding changes to the broader heath system.

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Dietitians Australia chief executive officer Magriet Raxworthy told Medical Forum the changes scheduled to come into place as of the new financial year would make it harder for people with disability to access the dietetic and nutrition support, they need to avoid hospitalisation.

“We will see more and more people with disability who need critical nutrition support ending up in our hospitals, putting further strain on GPs, specialist doctors and the acute care workforce,” she said.

“People living in outer metro, regional and remote Australia will be most impacted, with cuts to travel allowances making it no longer viable for allied health professionals including dietitians to service these communities.”

Ms Raxworthy said reforms made to the NDIS in late 2024 that changed how participants could access and utilise their funding made in October 2024 had already had negative impacts on the health of a number of NDIS participants.

“Since the NDIS support changes in October, our dietitians working in acute care have been reporting an increase in people with disability presenting at hospital as a result of nutrition related complications,” she said.

“The clinical impacts include faecal impaction and necrotic bowel due to mismanaged bowel management plans, aspiration pneumonia as a result of eating unsafe textures, enteral feed complications including under and over feeding, dehydration and malnutrition.

“The common theme is these people have had their NDIS nutrition and dietetic supports denied, instead of receiving essential support in their communities they end up in a hospital bed.”

Ms Raxworthy said Dietitians Australia was “incredibly concerned” the NDIS pricing cuts just announced would only worsen this situation.


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