NDIS reform impact
Capacity building supports
Capacity building supports — covering support coordination, improved living arrangements, social and community participation, learning and employment, and health and wellbeing — face the most significant scrutiny in the April 2026 reforms. Social and community participation within this category has been directly named as a reform target.
What changed in April 2026
Minister Butler's April 2026 announcement specifically referenced social and community participation funding as an area where NDIS money is being spent in ways the government believes could be better served by mainstream services. Capacity building supports that focus on skill-building toward independence are in a better position than those that fund ongoing participation without a clear pathway to reduced need.
For participants
If your capacity building budget includes support coordination and evidence-based therapeutic supports, your position is relatively stable. If it's largely social participation programs without a clear functional outcome, expect more scrutiny at your next review. Document the functional goals your capacity building supports are working toward.
For providers
Providers delivering social and community participation programs face the most uncertainty. Providers delivering support coordination, behaviour support, or evidence-based therapies are in a stronger position. Review your registration categories and consider how the foundational tier may absorb some of your current participant base.
See how this affects your specific situation.
The check tool assesses your individual risk based on your support types, plan size, and diagnosis — not just a generic read.
Frequently asked
Will my therapy supports be affected by the 2026 changes?
Evidence-based therapies tied to functional goals — OT, speech pathology, physiotherapy, psychology — are in a better position than general social participation programs. The key is that your therapy supports should be clearly linked to improving or maintaining your functional capacity.
What is the foundational tier and will it replace capacity building?
The foundational support tier is a new layer of state-funded supports for people who don't qualify for the NDIS but have some disability support needs. For some participants, social and community participation supports may move to this tier rather than being funded by the NDIS.
Other support types
Information current as of 2026-05-07. Rules are subject to change as legislation is finalised. This page is general information, not legal or financial advice. Full disclaimer