NDIS Changes and Their Impact on Children in Out-of-Home Care
The Carer Project
The Carer Project is a volunteer-led advocacy and peer support initiative committed to improving outcomes for vulnerable children and the carers who support them. In 2025, The Carer Project conducted a survey of foster and kinship carers to better understand their experiences navigating the National Disability Insurance Scheme (NDIS). This report was developed from survey feedback and evidence gathered from foster and kinship carers during 2025. Version 2.0, dated 6 July 2026, reflects editorial revisions to improve clarity, readability, and structure only. The evidence, concerns, and recommendations remain unchanged. We are deeply concerned about the NDIS changes that came into effect on 1 July 2025, and about the ongoing management of NDIS access, plans, and funding for children in out-of-home care. Carers across Australia continue to raise serious concerns that remain unresolved and appear to be worsening under the current reforms. This document outlines the key concerns consistently raised by carers regarding the administration, accessibility, and effectiveness of NDIS supports for children and young people in out-of-home care, together with recommendations for reform.
Inadequate Involvement of Carers in NDIS Processes
Carers, who provide 24/7 daily care and hold detailed knowledge of the child’s needs, are often excluded from NDIS planning, reviews, and communications. NDIS planners, DCP workers, and support coordinators frequently prepare plans without carer input, resulting in inaccurate information and insufficient funding. Carers are often not told whether a child has a NDIS plan, what services have been allocated, or when appointments and reviews are scheduled.
Poor Plan Design and Administrative Failures
Outdated plans are routinely rolled over and do not reflect a child’s age, development, or changing needs. When reassessments are eventually completed, earlier reports may no longer be accepted, requiring costly reassessments that use limited participant funds. Many plans do not align with the child’s goals or needs, leaving service providers unable to deliver appropriate support.
Access Barriers and Funding Cuts
Reduced travel funding significantly limits access for participants and children who cannot tolerate hospitals or busy public settings because of ASD, ADHD, or other conditions. Regional and rural participants are further disadvantaged, with funding cuts affecting access to therapy and services in communities that urgently need sustainable support. Some providers increase service and equipment costs once they learn a child has a NDIS plan, depleting funding more quickly and reducing available service hours.
Some providers have indicated they may no longer support children with complex needs because of reduced funding and administrative complexity.
Denial of Critical Services and Equipment
Children have experienced lengthy delays in, or been denied access to, essential services, supports and equipment, including therapy, wheelchairs, medical-grade safety beds, access ramps, home and bathroom modifications, vehicle modifications, and sensory and communication tools. These delays and denials affect safety, access to education, and social and community participation.
Financial and Emotional Toll on Carers
Carers are frequently left out of pocket, and their employment is often affected because they must follow up with DCP, the NDIS, and service providers to correct errors. Carers are often left distressed and frustrated and are often blamed for unmet needs that result from systemic failures rather than from any failure to support the child.
Misuse and Depletion of Participant Funds
DCP may engage providers or authorise expenditure from a participant’s plan without carer consultation and despite often having limited day-to-day knowledge of the child’s needs, behaviours, functioning, and support requirements. This can contribute to inappropriate use of funds and the rapid depletion of available budgets. There is limited accountability when a child’s plan is depleted and essential services are placed on hold pending lengthy reviews. During these periods, carers report that DCP may decline to fund necessary supports and services, leaving children and young people without access to essential interventions, therapies, and equipment while awaiting review outcomes.
Accountability and Oversight Failures
Inaccurate information can result in children being denied access to the NDIS. Many carers report that DCP workers do not always have the training or specialist disability knowledge required to effectively support NDIS processes and complex participant needs. Carers report that decisions affecting a child’s NDIS supports are sometimes made without meaningful consultation with the people who know the child best and provide their day-to-day care. Carers are sometimes charged for missed appointments they were not told about. There is no independent oversight of DCP’s handling of NDIS plans or funding use. The NDIS complaints process is not sufficiently effective in addressing accountability or child safety concerns. Service providers are not consistently held accountable for fraud, misconduct, or practices that place participants at risk.
Trauma-Informed Services
Children and young people in care may experience PTSD, developmental trauma, and complex trauma, each of which can present through different signs, symptoms, and behaviours. These behaviours often overlap with, or appear similar to, those associated with ASD, ADHD, and other disabilities, yet trauma-related mental health injuries are not consistently recognised or funded under the NDIS.
We urge the relevant decision-makers to
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Immediately review and reconsider the NDIS changes introduced on 1 July 2025.
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Require carer involvement in all NDIS planning and review processes for children in out-of- home care.
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Ensure direct communication and information-sharing with carers about each child’s plan, services, appointments, and reviews.
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Establish independent oversight of DCP’s NDIS involvement and an independent NDIS complaints and investigation process.
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Introduce policies to prevent providers from inflating fees once they become aware of NDIS funding
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Undertake direct, meaningful consultation with foster and kinship carers to design a system that reflects the real needs of vulnerable children, rather than relying solely on feedback from peak bodies, representative organisations, or funded providers.
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Broaden recognition of trauma- related disability so children affected by trauma in out-of-home care can access appropriate therapeutic services, supports, and equipment.
Conclusion
Children in care are some of the most disadvantaged in our community. The current NDIS structure is not meeting their needs or adequately supporting the carers who care for them. These issues compound trauma and delay access to timely, appropriate support. We urge you to take this matter forward and help deliver a system where children’s needs are prioritised, carers are respected, and public funds are used responsibly.
Lisa O’Malley