Working together to trial blended payments
Note: Due to 2025 Machinery of Government changes, responsibility for the Blended Payments Trial has transferred to the Department of Health, Disability, and Ageing (DHDA). Visit National Disability Insurance Scheme reforms and reviews | Australian Government Department of Health, Disability and Ageing for further information on NDIS reforms led by DHDA.
Blended Payments and co-design
As part of the 2023-24 Budget the Australian Government committed $24.6 million over 4 years to work with participants and providers to trial blended payments. This measure was one of many in a wider package of reforms designed to improve the National Disability Insurance Scheme (NDIS).
We worked with NDIS participants and providers between August and October 2024 to co-design trials of blended payments that give incentives for providers to innovate service delivery and improve outcomes for participants.
Thank you to everyone who took part in our co-design workshops. Your insights, perspectives, and lived experience helped us understand how blended payments might work in the NDIS. We also heard of instances where blended payments are unlikely to be the best option to help make changes.
For a summary of what we learned through co-design workshops:
Blended Payments: What we heard report [PDF 148kb]
Blended Payments: What we heard report [DOCX 88kb]
Easy Read versions of What we heard report
Easy Read: Younger People in Residential Aged Care [PDF 1.6mb]
Easy Read: Supported Independent Living [PDF 1.6mb]
Easy Read: Employment Support for School Leavers [PDF 1.7mb]
If you have any issues accessing this content, please contact PricingPolicy@health.gov.au
What are we doing now?
Trials of the blended payments models developed in co-design will not go ahead.
Government has recently announced a range of concurrent reforms that will change the way some supports are funded. These changes need time to understood before we can trial or apply outcome-based payment models in real-life settings.
These recently announced changes include the design and delivery of plan management, changes to address NDIS Pricing, and the commissioning of Support Coordination and Home and Living Supports.
The Department of Health, Disability and Ageing (DHDA), and the NDIA will continue to explore opportunities for blended payments within the NDIS.
We will continue to use the insights from the workshops in other ways to support providers to improve service delivery to participants, and to make sure the outcomes important to participants are kept at the forefront of payment reforms.
For more information, visit health.gov.au/securingtheNDIS and read the Securing the NDIS for future generations fact sheet
Outcome of Co-Design Workshops
Younger People in Residential Aged Care
During the co-design workshops, we heard about the work being done across the sector to support people who are under the age of 65 to find appropriate accommodation outside of residential aged care.
We heard the way that Younger People in Residential Aged Care (YPIRAC) providers are paid is not likely to make a significant difference to where a person lives because the barriers to leaving are largely structural. Because of this, we decided against including YPIRAC participants in the Blended Payments Trial.
For information about supports available to younger people in residential aged care, visit Younger people in aged care | Australian Government Department of Health, Disability and Ageing.
Supported Independent Living
There is work underway to improve service delivery for people receiving Supported Independent Living (SIL) supports.
DHDA will commence consultation and design of a commissioning approach for home and living supports for SIL participants who need 24/7 support to ensure participants receive the best supports and address provider viability challenges.
The NDIS Quality and Safeguards Commission is implementing new Practice Standards and mandatory registration for SIL providers from 1 July 2026 to better support providers and workers to deliver high-quality supports for NDIS participants. These reforms aim to improve the quality and safety of shared accommodation and daily living supports.
For more information on NDIS Practice Standards Reform and Mandatory Registration for SIL providers, visit the NDIS Commission Reform Hub.
Employment Supports for School Leavers
The way the NDIS funds employment supports has changed.
We know that it is important to understand where a participant is on their employment journey. We understand that the level of support they need will differ depending on their stage of life and their employment goals.
NDIS funding for employment supports allow participants to choose where they work and who helps them. Providers can support people to try different jobs and find work they like.
For further information on the way employment supports are delivered to young people refer to the Guide to employment support for young participants | NDIS.
Inclusive Employment Australia (IEA) was introduced on 1 November 2025, replacing the Disability Employment Services (DES) program. IEA allows school leavers to receive specialist support to prepare for, find, and maintain work. It also offers different types of support based on what the person needs.
It is important to understand how this affects school leavers and NDIS providers and to give the sector time to adjust before testing any new payment approaches.
If you would like to learn more about Inclusive Employment Australia, visit Inclusive Employment Australia | Department of Social Services.
Keep informed
If you would like to stay informed about this work and other NDIS reforms led by DHDA, visit National Disability Insurance Scheme reforms and reviews | Australian Government Department of Health, Disability and Ageing.
Quality and Safety
If you wish to make a complaint about the quality and safety of your NDIS supports and services, please contact the NDIS Quality and Safeguards Commission. The NDIS Commission regulates NDIS services and supports with nationally consistent systems, protections and education.
