Not-for-profit disability and aged-care providers are facing a critical financial juncture, with new NDIS pricing arrangements and the Support at Home framework reshaping funding models and increasing pressure on sustainability, says Jacob Medel, partner, Audit & Assurance, HLB Mann Judd.
From 1 July 2025, updated NDIS pricing arrangements introduced a 3.95 per cent increase for support worker services, revised therapy rates and tighter limits on travel charges. Further, the Support at Home framework, effective 1 November 2025, brings greater transparency to how aged-care services are funded, delivered and monitored.
These changes are placing increased scrutiny on how businesses manage costs, allocate resources and maintain service quality.
“We are now seeing the impacts of these changes flow through the sector, including reduced margins, increased regulatory enforcement activity, and a rise in merger and consolidation discussions,” said Medel.
“At the same time, many not-for-profit organisations are focused on implementing system updates to support the Support at Home reforms and ensuring compliance with evolving standards, which is adding further cost pressures. In response, businesses are placing a much greater focus on understanding and managing their operational cost structures to support long-term sustainability.”
Medel warns that without robust costing frameworks and accurate financial data, businesses risk gradual erosion of reserves and long-term sustainability challenges. He encourages boards to adopt clearer performance dashboards, link operational and financial data, and ensure management can map both direct and indirect costs to services.
“Boards must sharpen their financial oversight and cost-management practices to navigate this changing landscape.
“While pricing adjustments provide some relief, they also reinforce the need for providers to understand the true cost of service delivery and ensure pricing models reflect all cost drivers, from compliance and supervision, to travel and administration,” he added.
Financial capability across boards and leadership teams will also be critical as reforms continue to evolve. Strengthening financial literacy and confidence will help organisations interpret results, manage risk and make evidence-based decisions.
Aligning mission with financial performance will be key to ensuring services can continue to support communities into the future.
“When boards understand the story behind the numbers, they are better positioned to make strategic decisions that safeguard both impact and longevity,” added Medel.
