NDIA Accountability Project

Transport funding accountability gap in NDIS transport funding

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Annual Report No. 2 of the 48th Parliament

Submission 12 - Supplementary Submission

NDIS BRIEFING NOTE – 27 April 2026

Subject: Transport Funding Accountability and Strengthening Plan Oversight Prepared by: Kelly Williams, NDIS Support Coordinator (Master’s in International & Community Development)

Purpose: to highlight a significant accountability gap in NDIS transport funding and outline a practical, low-disruption reform that improves financial integrity while maintaining participant choice and control.

Key Issue: Transport funding under the NDIS is frequently provided as a direct cash allowance without requirement for receipts or verification of use. This creates a structural inconsistency compared to other NDIS supports, which are typically:

  • Provider-claimed, or
  • Reimbursed with evidence

The Scale of Funding:

  • ~650,000 NDIS participants
  • ~40–45% receive transport funding (260,000–292,500 participants)
  • Average ~$2,500 per participant annually

Total estimated annual transport funding: → $650M – $730M

Financial Risk (Unverified Use): Due to limited oversight:

  • 10% not used as intended → $65M–$73M annually
  • 20% not used as intended → $130M–$146M annually

Estimated recoverable/reallocatable funds: → $30M–$70M per year (conservative). These funds could be redirected to essential disability supports without reducing overall participant budgets.

Policy Context: the current approach appears inconsistent with the NDIS Act 2013, including:

  • Value for money requirements
  • “Reasonable and necessary” criteria
  • Broader Scheme sustainability obligations.

Proposed Reform: Transition transport funding from cash payments to existing NDIS-controlled mechanisms:

  • Plan-managed: Financial intermediary oversight
  • NDIA-managed: Provider or reimbursement-based claims

The Benefits:

  • Maintains participant flexibility and access
  • Introduces appropriate accountability
  • Aligns transport with all other NDIS supports
  • Improves Scheme sustainability and public confidence

Annual Report No. 2 of the 48th Parliament

Submission 12 - Supplementary Submission

Broader Systemic Issue

There is currently no consistently funded role responsible for:

  • Active plan oversight
  • Monitoring appropriate use of funds
  • Ensuring alignment with participant goals Support Coordination exists but is:
  • Not consistently included in plans
  • Often underfunded relative to complexity
  • Not positioned as a core safeguarding function

System Opportunity

Experienced Support Coordinators represent an existing, skilled workforce capable of:

  • Monitoring plan utilisation and risks
  • Supporting appropriate use of funding
  • Identifying inefficiencies early
  • Improving participant outcomes Strengthening and appropriately funding this role would:
  • Reduce misuse and underutilisation
  • Improve plan effectiveness
  • Support long-term Scheme sustainability

Summary

Transport funding highlights a broader design gap in the NDIS: funding without consistent oversight. Targeted reforms—using existing systems and workforce capacity—could:

  • Improve accountability
  • Recover tens of millions annually
  • Strengthen outcomes without reducing supports

Next Steps

Opportunity for:

  • Policy review of transport funding delivery model
  • Consideration of Support Coordination as a core plan function
  • Consultation with frontline providers

Contact: Kelly Williams