NDIS access collapse for psychosocial disability sparks concern

November 12, 2025 BY
NDIS Psychosocial Disability

Australian Psychosocial Alliance spokesperson Tom Dalton is seeing seeing growing inequity in access to the NDIS for people with psychosocial disability. Photo: SUPPLIED

A DRAMATIC decline in access to the National Disability Insurance Scheme (NDIS) for people with mental health-related disabilities is putting vulnerable Australians at risk and will have far-reaching consequences, the Australian Psychosocial Alliance (APA) has warned.

The national alliance of leading mental health support organisations released a report in late October, “Access Denied”, showing NDIS application approval rates for people with psychosocial disability have plummeted by nearly two-thirds (62 per cent) within the past five years.

Only 25 per cent of applications were approved for this group according to the most recent data, compared with 66 per cent of such applications at the start of the 2020/21 financial year. However, the access rate across all disabilities has remained relatively steady.

Access Denied also highlighted 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.

“We are seeing growing inequity in access to the NDIS for people with psychosocial disability. It’s verging on systemic discrimination,” APA spokesperson Tom Dalton, who is chief executive officer of member organisation Neami National, said “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.

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.

For more information, head to psychosocialalliance.org.au

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