Earlier this week, National Disability Services released their State of the Disability Sector Report 2025. In previous years, the report has outlined general growth, trends in participants and providers, and where the sector is heading.

This year, the report has been significantly different, and not in a good way.

We recommend all our subscribers to read the original report. All data and credit goes towards National Disability Services and the incredible work they do on a daily basis. The following findings from the report are from a survey conducted from NDS, and may not be a full representation of every single NDIS provider across Australia.

This year, the report captures a sector pushing itself to breaking point, keeping people afloat despite shrinking resources, unclear rules, and pricing that does not match the real cost of high-quality support.

A sector under strain

85% of organisations say their operating conditions worsened this year. Close to half recorded a financial loss. These aren’t abstract numbers. They reflect reduced local services, fewer choices for participants, growing wait times, and increasing pressure on frontline staff.

The 2025 Pricing Guide Update proved to be a significant strain on the industry, with many primary services seeing price drops from 2024. This has resulted in the following number, where 81% of organisations believe they won’t be able to provide NDIS services at current prices.

Unfunded work

The report’s most striking insight is the rise of unfunded work.

77% of providers delivered essential supports that were never funded in participant plans. That includes crisis responses, plan gap coverage, navigation across multiple systems, travel, and continued support after funding runs out. Together, this work totalled more than $69 million across the sector, or an average of $460,000 per organisation.

Future planning and direction

Below is another set of results from the report. There are many key takeaways from these findings:

59% of organisations cannot create a vision or plan more than 3 years in advance. This is significantly different from many other sectors, where businesses can have 3, 5, or even 10-year plans for where their business is heading. Within the NDIS, this is not possible. Each organisation is at the complete mercy of regulatory changes, that can come at any point in time.
38% of organisations are considering leaving the disability space.

In other words: providers are absorbing a significant burden so that people with disability are not left without support.

What does this mean for the future?

The NDIS sector changes every year, sometimes from the NDIS itself or activist groups, and other times from legislation changes passed by the government.

More organisations leaving the NDIS space

We’ve already seen it with Anglicare WA and PsychPhys both leaving the NDIS sector in recent weeks. Expect to see more small organisations close in the coming months and years, especially in disciplines that were negatively affected in the recent Pricing Update. Organisations that were not diversified might be the most affected.

This will mean less choice for participants and families looking for quality service providers in their region.

More saturation in high-earning disciplines

Many organisations aren’t going to close up shop without trying a few different options first. One option that we are starting to see is companies diversifying into other disciplines that are the most lucrative within the NDIS. Currently, that just so happens to be Specialist Behaviour Support.

Across the country, we’re seeing more and more companies start to provide Specialist Behaviour Support as part of their suite of services. Business owners and organisations always follow the money. So we expect to see the move into Specialist Behaviour Support increase in the next year.

More Mergers & Acquisitions

It’s a very common practice in struggling sectors for there to be an uptick in Mergers & Acquisitions (M&A).

Mergers refer to when two organisations merge into one. This normally occurs between organisations that are governed by boards, and is another method used to bring assets together to avoid either business going under.

Kirinari and Better Together’s merger in September 2025 provide a clear example of a merger within the NDIS sector.

From the above article:

“Given our long history serving our community, a decision like this was never going to be an easy one, but I am convinced that it is absolutely the right one. The current funding environment for community services demands the scale that this amalgamation delivers.”

“In joining with Kirinari, we are providing certainty and confidence to our customers and communities that they will continue to receive the essential support they need to thrive in the regional areas they call home.”

Acquisitions on the other hand, is when a larger organisation buys out the assets of another organisation. All assets, participants and staff move to the bigger organisation, and the old brand ceases to exist.

NIB is a clear example of a larger organisation (insurance in this instance) buying up Plan Management providers to build out its NIB Thrive arm. Expect to see more of this in the coming months and years.

Thriving Kids

Thriving Kids is a new Australian government initiative aiming to provide a national system of support for children aged eight and under with mild to moderate developmental delay and autism. The program aims to identify developmental concerns earlier and support families by strengthening existing service systems, with the goal of reducing pressure on the National Disability Insurance Scheme (NDIS) for this age group.

The build-out of this initiative is still uncertain, after being postponed by the government until the second half of 2026.

The federal budget has lost $1.1 billion in savings as a result of delayed reforms to the National Disability Insurance Scheme, as Labor continues negotiations with the states to get them to shoulder more of the cost of providing disability services.

The government has postponed changing how it assesses people’s eligibility for NDIS services until the middle of 2026, to allow for more consultation. This reform has been described by experts and disability advocates as the most significant change to the $50 billion scheme in its history.

What about Insight PBS?

From Insight PBS Managing Director: Rosie Valencia:

“In light of recent announcements about several NDIS providers closing or withdrawing services, and the recent NDS report, we understand that many participants, families, and partners may be feeling uncertain about the long-term sustainability within the industry.

We want to reassure our community that Insight PBS is not in a position of financial distress, nor are we operating at a loss. Our organisation focuses on sustainable growth whilst delivering quality services. We have an annual review of our financial and clinical governance, as well as our operational management, to ensure we are able to support participants in the long run.

We remain deeply committed to the individuals, families, and communities we serve. And this commitment drives our due diligence in various operational and executive decisions.

If you have any questions or concerns, please reach out. We are always available to talk through any uncertainties and to reaffirm our commitment to delivering reliable, high-quality Positive Behaviour Support well into the future.”

Resources
Read the full pricing arrangements
Read the full NDS State of the Sector Report
Read Kirinari & Live Better’s Merger Statement
Read more of our blog articles here
Read the Thriving Kids Fact Sheet
Refer to Insight Positive Behaviour Support here.
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