Plan Indexation: What Participants Need to Know

In our conversations with participants and nominees, it’s clear there’s some confusion about NDIS plan indexation. Some have been told it doesn’t exist and many simply are unaware of it and wonder if it’s something they need to take care of (spoiler: you don't).

Let’s clear it up.

Each year in July, the National Disability Insurance Agency (NDIA) updates its NDIS Pricing Arrangements and Price Limits (PAPL) which sets the rates for supports and services under the NDIS. Shortly after these changes, your NDIS plan budget may be automatically adjusted through what’s called plan indexation. 

What is Plan Indexation? 

Plan indexation is the annual adjustment of your NDIS plan budget to reflect changes in the cost of services. It’s based on factors such as inflation, wage increases for support workers, and updated price limits set by the NDIA.  

Plan indexation helps ensure that you have enough funding to continue accessing the supports and services you need without financial gaps caused by rising costs. 

If you already have an active NDIS plan, you don’t need to take any action for this to happen. The NDIA will automatically update your remaining budget to reflect the new prices, usually within a few weeks of the new PAPL being released, around mid July of each year. 

While indexation happens automatically, here are a few things to consider: 

• Stay informed by checking the official NDIS website or talking to your plan manager. 

• Review your updated plan budget to know how that any increased rate your Providers have agreed to charge you there is enough there for these increases. 

• Follow up if you notice your plan hasn’t been updated and you are worried about your funding, with the new pricing arrangement, you can contact the NDIA directly for clarification. 

  
  

Also your providers should be discussing changes to your support costs with you any, it's their duty to make sure you are aware of their incoming price changes.

To summarise 

Plan indexation is a standard and automatic process that helps keep your funding in line with real-world costs. That means more reliable support, better continuity of services, and less worry about your budget being stretched too thin as prices change due to increased costs. 

While you don’t need to apply for indexation, or take action for it to happen, it’s always beneficial to stay informed. Knowing these updates helps you make confident choices about your NDIS plan so you can keep receiving the supports that matter most to you. 

For more detailed information, you can refer to Pricing updates | NDIS