The End of Core Funded Allied Health Therapy: What We Learned and What Comes Next

From the first of July 2025, NDIS participants could no longer use their Core budget to access allied health therapy supports. It was a change that many in the sector had anticipated, but for a large number of providers, it still arrived with more confusion than clarity. Now that the transition is officially behind us, it is time to reflect, regroup and learn the critical lessons this policy shift has taught us.

This was not just an administrative update or a routine change to funding categories. It was a structural change that disrupted how therapy services were accessed and how service providers structured their operations. For businesses that were built on flexible service delivery models supported by Core funding, the consequences of this transition were significant.

What Changed on 1 July 2025

Prior to the change, many NDIS participants used their Core budget to receive timely therapy supports. This arrangement was practical and often the only way participants could access essential allied health services quickly, especially when their Capacity Building budgets were already stretched or non-existent. It allowed therapy providers to be responsive, client-centred and efficient.

However, from 1 July onwards, this flexibility ended. Therapy could only be claimed from the Capacity Building budget. That meant if a participant did not have funds allocated to that category, or if the funds were exhausted, services could not be delivered or claimed under Core. It triggered a chain reaction across the sector.

For participants, it meant delays in accessing therapy and the need to apply for plan reviews or budget reallocations. For providers, it resulted in income uncertainty, the need to restructure service agreements and a rush to educate clients on what these changes meant for their ongoing care.

The Business Impact on Providers

For businesses that had grown around the convenience of Core funded therapy, the change was a major disruption. Many providers found themselves dealing with cancelled appointments, increased client inquiries and the stress of chasing clarity around participant budgets.

Some businesses experienced an immediate drop in revenue, as clients either did not have Capacity Building funds available or were unsure how to access them. Others faced pressure to provide unpaid or unfunded services out of loyalty to their clients, hoping that plan reviews would eventually restore funding.

This period exposed a major weakness in how many NDIS businesses were structured. A heavy reliance on a single funding type without building in adaptability made many providers vulnerable. The reality is that NDIS policy will continue to evolve, and businesses that are not built to flex and shift with those changes will always find themselves scrambling to catch up.

One of the biggest lessons from this shift was the importance of having a resilient business model. For many providers, the change was not just a trigger to update service agreements but a full-scale review of how their business operated.

It prompted essential questions:

• Were participants educated about how their therapy was funded?

• Was the admin team prepared for increased contact with planners and support coordinators?

• Did the business have the systems in place to respond to sudden shifts in funding guidelines?
  

Businesses that had already invested in participant education and flexible systems were able to lead their clients through the change with minimal disruption. They used plain English to explain what was happening, offered support with plan reviews and equipped their staff to handle the increased demand for information and reassurance.

In contrast, businesses that had not built those systems in advance found themselves overwhelmed. Without a strong internal structure, even minor disruptions became major obstacles.

The Importance of Participant Education

One of the recurring themes that emerged from this transition was how many participants had little understanding of how their plans worked. Many clients did not realise their therapy had been funded through Core, and were unaware that changes were coming until appointments were cancelled or fees changed.

This lack of understanding placed an enormous burden on providers. Frontline staff, reception teams and allied health professionals suddenly found themselves having to explain NDIS budgets, funding categories and review processes to distressed clients and families.

Going forward, education cannot be an afterthought. Providers must build participant education into their onboarding process, their service agreements and their ongoing client communication. When clients understand their plans, they become active participants in their own care. They are more likely to advocate for the supports they need and more prepared when changes come.

Admin Teams as the Unsung Heroes

If there was one part of the business that truly felt the weight of this change, it was the admin team. Reception staff, intake coordinators and accounts officers became the frontline for frustrated clients and confused families. They had to explain the shift, navigate plan reviews, chase support coordinators and maintain service continuity under immense pressure.

This highlighted just how critical it is to invest in admin training and processes. Businesses that had robust systems, well documented procedures and cross-trained teams were able to manage the increased workload with more confidence. Others found themselves playing catch up, with overwhelmed staff and mounting stress.

As a provider, it is not just your therapists or clinicians who deliver value. Your admin team holds the business together. They deserve training, recognition and tools that help them work efficiently and with confidence.

One of the defining features of the businesses that weathered this change well was strong leadership. Leaders who anticipated the shift, communicated clearly with their teams and supported their clients through the process emerged stronger.

These were not the businesses that waited until the first of July to make changes. They were proactive. They updated service agreements, created educational resources, engaged with participants and prepared their teams. They stepped into the uncertainty with a mindset of calm leadership, not reactive panic.

Strong leadership means being willing to review your model, adjust your processes and make hard decisions before the crisis hits. It also means listening to your team, staying grounded in your values and putting participant care at the centre of your response.

What Comes Next

Now that the policy has taken effect, the focus must shift from reactive problem-solving to future-proofing your business. This change is unlikely to be the last. The NDIS is evolving, and as funding structures change, so too must your business.

Ask yourself:

• Have you built a funding education process into your client journey?

• Are your admin systems prepared for rapid policy changes?

• Is your business model reliant on flexibility that may not always exist?
  

The providers who thrive going forward will be those who can pivot, adapt and remain participant focused even as the rules change around them.

This is not the end of flexibility, but a reminder that flexibility must be built on solid foundations. Resilience, clarity and leadership will always be your greatest assets.

So as we move into the second half of the year, now is the time to reflect. What did you learn from this shift? What will you do differently next time? And how will you build a business that not only survives but leads through change?

Because the NDIS will continue to change. And the providers who prepare, plan and lead through it will always be the ones who rise above.