The NDIS was established to empower participants to engage directly with their chosen providers on what services they receive, and what price they would pay. Done well, this market based approach would allow providers to receive signals from participants about what supports they value. Providers would compete and have flexibility to implement innovations that could best meet participants’ needs and preferences. The NDIS market, however, is not yet working for all participants.

• Finding 1: There are opportunities to improve NDIS pricing arrangements over the short- to medium-term
• Finding 2: The fee-for-service payment approach rewards NDIS providers for the volume of supports they deliver, rather than for supporting participants to achieve outcomes
• Finding 3: A lack of transparency around prices, volume, quality and outcomes is restricting the effectiveness of NDIS service delivery
• Finding 4: Removing price caps could place pressure on scheme costs. Instead, the focus should be on foundational market reforms that help align incentives for participants, providers and governments

The review wants to hear from stakeholders about when and how these foundational reforms could be achieved.

Consultation is open until 31 July 2023.