Practice Operations
The NDIS price schedule changed in July 2025. The advice directed at physio practices that provide services to NDIS participants has not fully caught up with what those changes mean for the expansion decision. Practices that were modelling NDIS growth at the old rates are now working with different arithmetic, and in several states the difference is significant.
The national physiotherapy rate dropped from $193.99 to $183.99 per hour. More significantly, the state-based loading that previously applied in WA, SA, NT, and Tasmania was removed at the same time. Practices in those states that were billing NDIS participants at $224.62 per hour are now billing at $183.99: a reduction of $40.06 per hour. For NDIS-heavy practices in those states, this is not a marginal adjustment. It’s a material change to the unit economics of every NDIS appointment.
What actually changed in July 2025
The current NDIS pricing arrangements set the physiotherapy rate at $183.99 per hour nationally. This replaced the previous national rate of $193.99 per hour. Simultaneously, the state-based loading that had applied in WA, SA, NT, and Tasmania, bringing those states to $224.62 per hour, was removed, with all states now on the single national rate.
The timing of the loading removal is the part of this change that has been least discussed in the advice reaching practice owners. A practice in Western Australia billing a 60-minute NDIS appointment in June 2025 was billing $224.62. The same appointment in July 2025 was $183.99. That’s $40.63 less per appointment, before any discussion of the administrative costs of providing that appointment. NDIS pricing is updated annually, and the direction in recent years has been downward in real terms. The next review should be modelled into any expansion decision made today.
Why the headline number understates the impact
The $10 per hour national reduction and the removal of the state-based loading compound against a cost structure that didn’t change. The wage cost of a physiotherapist treating NDIS participants didn’t fall in July 2025. The overhead cost of the appointment didn’t fall. The administrative burden of NDIS, claim submissions, treatment plan approvals, ongoing reporting, and the higher documentation standard compared to private pay appointments, didn’t fall. In WA, SA, NT, and Tasmania, that administrative burden now applies against a rate that is 18% lower than it was 12 months ago.
The practices most exposed are those that had built their growth model significantly around NDIS volume, particularly in the affected states. The plateau pattern in those practices often looks different to a private-pay plateau: revenue is present but margins have compressed, and the path to improvement isn’t as simple as improving retention or conversion rates within the same pricing structure.
The same administrative burden. The same wage costs. A materially lower rate. For NDIS-heavy practices in WA, SA, NT, and Tasmania, the 2025 changes made already difficult arithmetic into genuinely challenging arithmetic.
How this changes the expansion question
Advice to expand NDIS caseloads was more defensible at the old pricing. At the new national rate, and particularly in the formerly loading-eligible states, the expansion decision needs to be modelled against actual cost of delivery before committing to it. The headcount required to serve NDIS participants well, given the documentation and coordination requirements, means the staff cost sits at a similar proportion of the lower rate as it did of the higher one. The absolute margin per appointment has compressed.
This doesn’t mean NDIS work is unviable. It means that treating it as a straightforward growth channel without modelling the true hourly economics, including realistic admin time allocation, is a mistake that the pricing changes have made more consequential. Practices with a strong private pay base that use NDIS as a secondary stream are in a better position than practices that structured their entire growth model around NDIS volume.
Model it before you expand: calculate the actual cost of an NDIS appointment at $183.99 per hour. Include the treating physiotherapist’s hourly cost at realistic utilisation, plus an honest allocation of admin time for claim management and reporting. Then compare that margin to a private pay appointment at your current fees. The comparison often changes the expansion decision, or at least the pace of it.
What sequencing looks like now
For practices considering NDIS growth in the current pricing environment, the most defensible approach is sequenced rather than rapid. Build a strong private pay base first. Add NDIS participants as a secondary stream, with a clear understanding of the margin contribution at current rates. Review that contribution annually against the NDIS pricing update cycle. Don’t model NDIS expansion against the previous rate structure, and don’t assume future pricing will improve.
For practices already heavily weighted toward NDIS, the question is whether the preferred provider relationships and private pay development that might otherwise feel optional are now necessary to balance the margin profile. At the old pricing, NDIS could carry a practice. At the new pricing, especially in WA, SA, NT, and Tasmania, the case for a more diversified revenue mix is stronger than it was.
Common questions about NDIS physiotherapy pricing
Is the $183.99 rate the same for all types of NDIS physiotherapy appointments?
The rate applies to standard therapy support. Different line items, including assessment fees, group therapy, and travel, have their own rates under the NDIS pricing arrangements. The NDIS pricing page publishes the full schedule, and rates are updated annually, typically from 1 July. Any expansion modelling should use current published rates rather than historical figures or verbal advice from other practices.
If I’m already an NDIS provider, should I be reconsidering my caseload mix?
It depends on your margin at the current rate and your geographic location. Practices in states that previously received the loading have experienced the most significant change. If your NDIS appointments are profitable at $183.99 per hour after realistic allocation of admin and staff costs, the caseload is defensible. If the margin is thin or negative when modelled honestly, the expansion question becomes more pressing than it might appear from revenue alone.
Where can I find the current NDIS rates?
The NDIS pricing arrangements and price guide are published on the NDIS website and updated annually. The current rates, line item codes, and any conditions on billing are in those documents. Don’t rely on industry blogs, other practices, or marketing content, including this article, for specific current rates. The NDIS website is the authoritative source, and rates change.
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