October 30th, 2025New report paints alarming picture of NDIS experience
A dramatic decline in access to the National Disability Insurance Scheme for people with mental health-related disabilities is putting vulnerable Australians at risk and will have far-reaching consequences, the Australian Psychosocial Alliance has warned.
The Australian Psychosocial Alliance (APA), a national alliance of leading mental health support organisations, today released a report showing NDIS application approval rates for people with psychosocial disability have plummeted by nearly two-thirds (62%) within the last five years.
Only 25% of applications were approved for this group according to the most recent data, compared with 66% of such applications at the start of the 20/21 financial year. The declining access rate sits in stark contrast to the access rate across all disabilities, which has remained relatively steady.
Access Denied also highlights a range of other troubling experiences for this group, including poor understanding of psychosocial disability and the impacts of mental ill-health, prohibitive costs associated with applications, and suggestions from non-medically qualified assessors to try inappropriate treatments.
APA spokesperson Tom Dalton, who is CEO of member organisation Neami National, said: “We are seeing growing inequity in access to the NDIS for people with psychosocial disability. It’s verging on systemic discrimination. While the Government and NDIA have not publicly made any changes to eligibility criteria, it is quite clear there are changes behind the scenes that are affecting NDIS approvals for this group.”
The APA is calling for the federal government to resolve the pressing issues of psychosocial disability access to the NDIS, improve the NDIA’s psychosocial disability capability, and ensure greater expert oversight, prioritising lived experience representation.
Access Denied draws on NDIS statistics, organisational data and first-hand insights from participants, carers and others involved in the system. CEOs of the seven APA members have gathered in Canberra this week to escalate their concerns to Ministers and other members of the federal parliament.
The report estimates thousands of Australians who should be eligible for support are being excluded, with opaque changes and inconsistencies in National Disability Insurance Agency processes creating logistical, cost and communication barriers, leading to inequitable outcomes.
“While we understand the need to reduce Scheme costs, this is not the way to do it and will ultimately lead to an increased burden on acute services in other areas such as health, homelessness, and unemployment. It is a false economy with a human and societal cost,” Mr Dalton said.
“People who need the NDIS need the day-to-day support that the Scheme was designed for. The rise in rejections for access means many are missing out on necessary and impactful supports, while waitlists for already-stretched mental health services will continue to grow. We need to build pathways which reflect an understanding of psychosocial disability and mental health, so that everyone gets the support they need.”
While people with a primary psychosocial disability account for almost 9% of current NDIS participants, they represent just 3% of those successfully obtaining access to the Scheme.
The term psychosocial disability captures people with a range of mental health challenges, including schizophrenia and bipolar disorder, where that condition strongly affects their daily function, self-care and social participation. People with psychosocial disability often have poorer physical health, lower life expectancy, experience high levels of social disadvantage and isolation, and are overrepresented in homelessness statistics.
Access Denied also points to an unsustainable burden on the time of medical and other professionals as part of the application process. In many cases, applications for single participants now involve a staggering 100 hours of professional medical and allied health input to receive NDIS support.
Problems with NDIS access are compounded by the lack of other supports available outside the NDIS for people with psychosocial disability. A 2024 government-commissioned study found major unmet psychosocial support needs across Australia. There is also a delay in introduction of foundational supports, a proposed state-and-federal program that would provide services for people who fall outside the NDIS.
“Federal and state governments need to move now on this, because we’re seeing terrible unintended human consequences. The current situation is excluding people from the NDIS, leaving them falling through the cracks,” Mr Dalton said.
The full report, Access Denied: Psychosocial Disability and the NDIS, can be accessed here.
