NDIS Impairment Notices, what does it all mean?

From 1 January 2025, all new participants will receive information about how they qualified to access the NDIS by meeting the disability or early intervention requirements—or both. This information will include their category of impairment, known as their "impairment notice."

At the time of writing, the NDIA has not yet confirmed the exact details regarding the implementation of these notices. The available information remains high-level and legislative in nature.

WHAT ARE THE IMPAIRMENT CATEGORIES

There are six impairment categories listed in the NDIS Act.

• intellectual

• cognitive

• neurological

• sensory

• physical

• impairments relating to a psychosocial disability

You can find the categories and their definitions outlined in the operational guideline – Applying to the NDIS document available on the NDIS website.

WHY HAS THIS CHANGE BEEN BROUGHT IN?

This change was recommended by the NDIS Review and aligns with participants’ requests for greater clarity and transparency about how they meet access requirements.

The NDIA believes providing this information will give participants a clearer understanding of how they meet the disability or early intervention criteria. Importantly, it also acknowledges that individuals with the same diagnosis may have different impairments and support needs.

WHAT ABOUT CHILDREN UNDER 6 WITH DEVELOPMENTAL DELAY?

For children younger than 6 years old who meet the criteria for developmental delay, the information will say they are eligible under the early intervention requirements with developmental delay.

WHAT IMPACT WILL IMPAIRMENT NOTICES HAVE?

Impairment notices are set to significantly influence how participants’ plans are funded and the supports they can access using their funding.

The funding a participant receives will be directly linked to their impairment notice. There have been changes to Reasonable and Necessary (section 34 in the NDIS Act) to now link these two things: a participant's impairment and the funding they receive to access support.

Section 34(1) aa:

The support is necessary to address needs of the participant arising from an impairment in relation to which the participant meets the disability requirements (see section 24) or the early intervention requirements (see section 25).

WHAT DOES IT MEAN FOR EXISTING PARTICIPANTS?

The NDIA has not provided a timeline for when existing participants will receive their impairment notice. With over 600,000 participants currently in the scheme, this process could take years, potentially up to five, to complete.

It has been indicated that existing participants will receive their impairment notice before transitioning to new framework plans. However, these transitions will only occur once the needs assessment and budgeting methods for the new plans have been developed, which is expected to take several years.

WHAT SHOULD CURRENT PARTICIPANTS BE DOING IN THE MEANTIME?

Existing participants should contact the NDIA to confirm what information is currently on file regarding their disability. This can help them understand which impairment category they may be linked to and how it could affect their funding.

Participants can request this information through a Participant Information Access request via the NDIS website, by emailing information.access@ndis.gov.au, or by calling 1800 000 110.

If participants believe their records are inaccurate, they should provide updated evidence of their impairment and functional capacity to ensure their records reflect their situation. Proactively addressing this ahead of reassessments is critical, as it will determine both ongoing eligibility and the supports funded under the scheme.

WHAT DOES IT MEAN FOR PROVIDERS:

Allied health providers, such as occupational therapists, must consider a participant’s listed impairment when submitting reports or advocating for additional supports.

Reports should include clear evidence demonstrating why a particular support is necessary based on the participant's impairment.

CAN A LISTED IMPAIREMENT BE CHANGED?

Participants, or their nominees, can apply to vary (change) their impairment category if they feel it is incorrect or no longer accurate.

The type of evidence required to support such an application will depend on why the change is being requested and the evidence previously provided. This is an area where we are waiting for more information on exactly what the NDIA will require.

If the NDIA approves the variation, the participant’s impairment notice will be updated accordingly. If a participant disagrees with the NDIA’s decision, they can request a review.

THERE ARE A LOT OF UNKNOWNS

Significant details about impairment notices, including their development, implementation, and timeline for rollout to current participants, remain unclear.

What we do know is that impairment notices are referenced multiple times in the NDIS Act and are directly linked to Reasonable and Necessary provisions.

This change is a positive step toward providing participants with greater clarity on how they met scheme access requirements, offering more transparency around their funding and plan objectives.

As always, we’ll need to wait and see how these changes impact participants in practice. Rest assured, as experienced plan managers, we are closely monitoring these developments and will provide updates as more information becomes available.