Introduction: Big Changes, Big Questions
If you or someone you love relies on psychology services through the NDIS, 2025 probably feels like a year of BIG changes. From how funding is released to new rules around therapy claiming and provider travel, there’s a lot to take in—and more than a little confusion in the air.
This post is your plain English guide to what’s changed, why it matters, and how you can stay on top of it all. Whether you’re a long-time NDIS participant or new to the scheme, let’s break down what these reforms mean for you and your mental health support.
1. Major Funding Structure Updates: Quarterly is the New Normal
What’s new?
As of May 19, 2025, all new and updated NDIS plans are split into funding periods—usually released every quarter—rather than handing over a full year’s budget in one go.
Why did this happen?
The NDIA says dividing annual funding into quarterly chunks will help participants manage their budgets better, prevent unintentional overspending, and make plan reviews smoother. Instead of juggling one big pot, you’ll now be working from smaller, easier-to-track instalments.
How does this affect psychology clients?
Psychological therapy often works best with regular, ongoing sessions and clear goals. Under the new system:
- You’ll need to sync your therapy bookings with your quarterly budget release dates
- Planning long-term therapy (like a 12-session program) may mean breaking arrangements into 3-month blocks
- No more paying up-front for a year’s worth of support—funds are only available as they’re released
This means a little more admin but (hopefully) less stress over running out of funds too early in your plan.
2. Claiming Therapy: No More Access via Core Budget
The big change:
From July 1, 2025, therapy supports aren’t claimable from your Core budget anymore. If you’re booking psychology sessions, these now must be claimed through the “Capacity Building – Improved Daily Living” category.
Wait…what does that mean?
Before July, lots of participants and providers could draw on Core funding for things like psychology, OT, or speech (especially if their Capacity Building funds were low). Now, the rules are strict:
- All psychology sessions MUST come from Capacity Building – Improved Daily Living, not Core
- Any claim made from Core for therapy is automatically rejected by the NDIA
- Psychology providers also need to update their billing and service agreements to match
Real-life impact
If you or your plan manager accidentally books or pays for sessions from Core after July, you’ll hit a brick wall with reimbursement. Your therapy could be paused while funds and bookings are sorted. (Not fun—especially if you’re at a critical point in treatment!)
Pro tip:
Work closely with your provider and plan manager to double-check your budgets—and make sure everyone’s on the same page about which category is funding your psychology support.
3. Changes to Provider Travel Claims
For anyone in rural or hard-to-reach areas, travel expenses are a big deal. The 2025 NDIS changes include tightening up the rules—and capping how much providers can claim for travel costs.
What’s new with travel and admin?
- Provider travel is now subject to stricter caps—limiting how much can be claimed for each session
- There are more rules on how therapy providers can charge for time spent travelling, especially for remote appointments
- Plan management funding has also been tightened, making it harder for organisations to cover admin and coordination costs
What does this mean if you live outside a major city?
- Fewer providers may be willing to travel if the costs aren’t covered
- Clients in regional, rural, and remote areas might face longer wait times for appointments, or fewer choices of psychologist
- In some cases, telehealth may become the main option if in-person visits are impractical
4. Cuts to Therapy Supports & Service Coordination
It’s not just structure that changed—funding levels did too. The new pricing arrangements have led to broader cuts that affect access.
What’s going on?
- No increase to support coordination rates since 2019, making it harder for support coordinators to deliver the same level of service
- Cuts to funding for plan management, which helps with invoice handling and budgeting
- Some participants may see lower budgets for therapy and supports, depending on reassessments
The ripple effect
- Support coordinators are stretched thinner, meaning less hands-on help to organise, monitor, and advocate for your therapy needs
- Participants are expected to take on more self-management (or rely more heavily on family/advocacy)
- Providers might see increased cancellations or reduced services in regions with caps and funding pressures
5. How Can Psychology Clients Navigate These Changes?
Yes, 2025 is a transition year—but with the right info and planning, you can stay on track.
a) Stay in touch with your support team
Check in regularly with your plan manager and support coordinator. They’ll help you:
- Track how much of your quarterly funding has been used
- Avoid double booking or over-spending
- Plan upcoming sessions in line with funding release windows
- Transfer service agreements over to the correct budget category
b) Be proactive with your psychologist
Ask your psychologist or the admin team at your clinic:
- How are they adapting bookings and billing to the quarterly cycle?
- Are there any changes to their travel (i.e., in-person vs. telehealth visits)?
- What documentation or notifications can they provide to help with plan reviews?
Open communication means fewer surprises (and fewer gaps in your support).
c) Budget with flexibility in mind
For each quarter, consider:
- Spreading sessions out to make sure your needs are met evenly across the plan period
- Setting aside a portion for unexpected needs (e.g., crisis appointments, progress assessments)
- Talking about options for session frequency or different therapy types if funding is tight
d) Focus on long-term mental health goals
The quarterly funding model is intended to encourage steady progress over time—not just spending for spending’s sake. Together with your psychologist, set clear goals for:
- What you want to achieve this quarter
- How you’ll measure improvement
- What you’ll need to keep momentum going into the next funding period
This can make reviews less stressful and give you a better story to tell when requesting future supports.
Our Compassionate Commitment: What Psychology NSW Clients Can Expect
At Psychology NSW, we know that change is never easy—especially when mental health and ongoing care are involved. Our team is committed to:
- Providing clear, up-to-date info about NDIS processes and changes
- Working directly with plan managers and coordinators to ensure smooth service access
- Offering both in-person and telehealth therapy options to suit your situation
- Advocating for our clients in plan reviews and funding discussions whenever possible
If you have questions or want to book a session to chat through your new plan, feel free to reach out. You can learn more about our services and contact our team at psychologynsw.com.au.
Closing Thoughts
NDIS changes in 2025 may feel like a lot, but with good support and a bit of forward planning, you can keep your therapy on track. Remember, you’re not alone—there’s a whole community (and the entire Psychology NSW team!) ready to help you navigate these changes.
If you’d like more info, practical tips, or to connect with a plan manager, support coordinator, or psychologist, just drop us a line.
Stay kind to yourself—you’ve got this!
Last updated: August 2025. For the latest info or urgent concerns, visit the NDIS website or contact Psychology NSW directly.
