Submission 2810
29th May 2026
Submission – Impact of Reduced Community Participation Funding in NDIS Plans
This submission raises concerns regarding the ongoing reduction of funding allocated to community participation supports within National Disability Insurance Scheme (NDIS) plans. These reductions are having a significant impact on the ability of people with disability to access, participate in, and contribute to their local communities. Community participation is not an optional extra. It is a fundamental component of inclusion, wellbeing, independence, and quality of life. Reduced funding in this area is creating increased isolation, poorer mental health outcomes, reduced skill development opportunities, and a decline in social connection for many NDIS participants.
Importance of Community Participation
The NDIS was established to support people with disability to achieve greater independence, social and economic participation, and inclusion within the community. Community participation funding plays a vital role in achieving these objectives by supporting participants to: Attend community activities and events Build and maintain friendships and social networks Participate in sport, recreation, volunteering, education, and employment pathways Develop confidence, communication, and daily living skills Reduce social isolation and loneliness Improve mental health and emotional wellbeing For many participants, support workers are essential to enable safe and meaningful access to the community. Without adequate funding, participants are often unable to leave their homes, attend activities, or maintain important social connections.
Impact of Funding Reductions
Recent reductions in community participation funding are resulting in significant negative outcomes for participants, families, and service providers.
Increased Social Isolation
Many participants are now unable to attend regular community activities due to insufficient funded support hours. This has resulted in increased loneliness, withdrawal from the community, and reduced social confidence and in effect instutionalisation unable to leave their homes Participants who previously attended programs, sporting activities, volunteer opportunities, or social groups are now remaining at home for extended periods due to lack of support funding.
Submission 2810
Decline in Mental Health and Wellbeing
Reduced access to community participation directly impacts mental health and emotional wellbeing. Participants are reporting increased anxiety, depression, frustration, and behavioural distress due to limited opportunities for social interaction and meaningful engagement. Families and carers are also experiencing increased stress as they attempt to fill gaps in support.
Reduced Independence and Skill Development
Community access supports are critical for developing life skills, travel skills, communication, decision-making, and confidence. Funding reductions limit opportunities for participants to practice and maintain these skills within real community settings. This creates a long-term risk of increased dependence and reduced capacity for independent living.
Inconsistent Decision-Making
There appears to be inconsistency in planning decisions relating to community participation supports. Participants with similar goals, functional impacts, and support needs are receiving vastly different funding outcomes. Many participants and providers report that funding reductions are occurring despite evidence demonstrating the positive outcomes achieved through community participation supports.
Increased Pressure on Families and Informal Supports
When funded supports are reduced, families and carers are often expected to provide additional unpaid support. This is not sustainable and can contribute to carer burnout, financial stress, and reduced workforce participation for family members.
Concerns Regarding Reasonable and Necessary Supports
Community participation supports should continue to be recognised as reasonable and necessary under the NDIS Act. These supports are directly linked to participant goals, social inclusion, independence, and overall wellbeing. Limiting access to community participation undermines the intent and principles of the NDIS, particularly the objective of enabling people with disability to participate fully in community life.
Recommendations
This submission recommends that the NDIA:
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Review current planning practices relating to community participation funding to ensure consistency and fairness especially in SIL funded facilities. Whilst they are funded for overnight supports the hours of 9am to 3pm are fundued using their social and community budgets therefore people living in SIL require these ongoing supports or they will not be able to continue to live in current SIL houses placing their health and safety at risk.
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Recognise community participation as an essential support that contributes to independence, wellbeing, and social inclusion.
Submission 2810
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Ensure planners and delegates adequately consider the long-term benefits and preventative value of community participation supports.
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Improve transparency regarding funding decisions and reductions within participant plans.
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Consult directly with participants, families, providers, and advocacy organisations regarding the impacts of reduced funding.
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Ensure planning decisions are evidence-based and aligned with participant goals and functional capacity.
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Consider the broader social and economic impacts of reduced community participation, including increased mental health concerns, carer stress, and long term support dependence.
Conclusion
In understanding that there needs to be some controls in place to manage the NDIA funding it should be considered on an individual basis and not just a blanket rule to reduce plans by 50% without considering the impact for necessary and essential supports for those individuals. Reducing community participation funding has significant consequences for people with disability, their families, and the broader community. Access to the community is a fundamental part of living an inclusive and meaningful life. The NDIS was designed to support people with disability to participate fully in society. Adequate funding for community participation is essential to achieving this objective. We urge the NDIA to reconsider current approaches to community participation funding and ensure participants receive the supports required to remain connected, included, and actively engaged within their communities.