NDIA release statement on Music and Art Therapy - An Update

After talk that the NDIA had decided to cut Art and Music Therapy on Monday night, the Agency released a statement regarding their planned changes to these therapies on Tuesday afternoon. 

The statement reads:

"In line with the legislation the Agency is updating its guidance to participants. A new Operational Guideline relating to therapy supports will be released on 2 December that clarifies:

• NDIS participants will continue to have access to music and art therapy.

• From 1 February 2025 how participants access music and art therapy will change. Participants will be able to access these supports through two different ways through their community participation budget:

1. At a 1 to 1 rate of $67.56 an hour when delivered by a registered provider.
2. At a group rate of $193.99 an hour when delivered to a minimum of 4 participants by a registered provider. This will support participants to have greater opportunities for inclusion and participation in the community.

Participants and providers can continue with current arrangements until 1 February, when the changes to the price guide come into effect.

Participants who have art or music therapy stated in their plan, because it is reasonable and necessary and based on evidence in their specific circumstances, can continue to access supports at the higher rate."

Why the NDIA has made this decision:

The updated guidance reflects the legislative changes that are being made to ensure NDIS participants have access to evidence-based, disability-related supports. The new guidance clarifies what NDIS participants can and cannot spend their funding on.

The NDIS list of NDIS Supports includes 'evidence-based therapy to help participants improve or maintain their functional capacity in areas such as language and communication, personal care, mobility and movement, interpersonal interactions, functioning (including psychosocial functioning) and community living'.

The NDIA mentions that they acknowledge that the evidence base in relation to music and art therapy continues to be developed and will be assessed by the NDIS Evidence Advisory Committee. This committee was a key recommendation of the NDIS review. It has yet to be set up, with the Australian Government's estimate of July 2025 for the setup to be complete.

What does it all mean?

From 1 February 2025, Art and Music Therapy will not be classified as therapy like it currently is. Providers will not be able to claim their services in line with therapy rates (which fall under a higher rate than most other activities); instead, claims will go through community participation.

This change doesn't mean art and music therapy is on the list of non-NDIS Supports, but it is unknown how the market will adjust to the decrease in the hourly rate. We may see music and art therapy providers restructure how they provide these services.

New NDIS Operational Guideline

As plan managers we use the operational guidelines to understand the rules put in place by the NDIA. Currently, the changes to the NDIS Act and the transitional rules in place don't align with the current operational guideline. With the release of the new operational guideline, it will be easier to navigate the new rules.

As soon as we have been able to study the new guidelines we will share the key changes and takeaways.