NDIS Pricing for Social Participation and Isolated Towns in 2026-27
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NDIS Pricing for Social Participation and Isolated Towns in 2026-27

NDIS Pricing for Social Participation and Isolated Towns in 2026-27

TL;DR: The 2026-27 Annual Pricing Review recommends a 10% price reduction for unregistered providers delivering Social, Community and Civic Participation (SCCP) supports from 1 January 2027, while maintaining prices for registered providers. It also recommends a new two-tiered Isolated Towns framework: existing Type 1 Isolated Towns keep their Modified Monash MM 6 reclassification and loadings, while a new Type 2 category lets providers negotiate travel costs (with no additional loading) for locations meeting defined data-driven criteria. See our complete guide to the 2026-27 pricing arrangements.

The 2026-27 Annual Pricing Review (APR) makes targeted recommendations for two areas where market structure and geography create distinct challenges: Social, Community and Civic Participation (SCCP) supports, and supports delivered in isolated towns.

What is changing for Social, Community and Civic Participation (SCCP) prices?

The APR explains that the SCCP market comprises two distinct provider markets. Most SCCP providers are unregistered and are predominantly sole traders or small businesses. There are fewer registered providers, but they operate under higher governance, workforce and compliance obligations. Current pricing does not distinguish between these markets, despite their different operating models, and claims data shows price clustering close to the maximum price across the market.

To better reflect this market structure, the APR recommends:

  • The prices for SCCP supports delivered by unregistered providers (including high intensity supports) should be reduced by 10% from 1 January 2027, and indexation of these supports should cease.
  • The prices and indexation for SCCP supports delivered by registered providers should be maintained.

The APR states this targeted differential provides a clear distinction between provider segments with different operating models and regulatory obligations, while limiting disruption for participants and preserving access to support.

What is the new Isolated Towns framework?

Access to NDIS supports in isolated towns continues to be constrained by geographic remoteness, extended travel requirements and thin provider markets. The APR notes that in 2024-25, average plan use in Isolated Towns was approximately 10% lower than non-isolated locations in MM 3 and MM 4, and around 17% lower in MM 5, despite existing price loadings and travel arrangements. To address this more precisely, the APR recommends a two-tiered framework.

Type 1 Isolated Towns

The NDIA should continue publishing the current locations on the Isolated Towns Modification (ITM) list, with an updated definition to reflect inclusion of locations 'surrounded by OR travel through remote areas'. These would be referred to as Type 1 Isolated Towns and will continue to have their Modified Monash category modified to MM 6, resulting in the application of the relevant loading and travel arrangements. The NDIA should also publish guidelines for managing the Type 1 ITM, including how locations that no longer meet the definition will transition out.

Type 2 Isolated Towns

The APR recommends a new Type 2 Isolated Towns Modification, published on the NDIS website with its policy definition, management guidelines and qualifying locations. Providers in a Type 2 location would be eligible to negotiate travel costs as part of their service agreements with participants, but no additional loading applies.

For a location to be listed as Type 2, it must meet all of the following criteria:

  • The location must be classified as MM 4 and/or MM 5; and
  • The average Statistical Area 2 plan utilisation over 3 years is 60% or less (calculated using only MM 4/5 locations); and
  • Travel time from a MM 4/5 Statistical Area 2 to the nearest MM 1/2/3 is 70 minutes or more; and
  • The Socio-Economic Indexes for Areas — Index of Relative Socio-Economic Disadvantage decile score at the Statistical Area 2 level is 5 or below.

The APR also recommends the NDIA monitor and evaluate the market levers implemented for Type 2 locations for the duration of the adjustment, to understand the impact of the changes and any unintended consequences.

What does this mean for participants and providers?

Participants in remote and isolated areas should benefit from a more targeted approach to travel and loadings designed to improve access in thin markets. For SCCP supports, participants may see different prices depending on whether their provider is registered or unregistered, with the unregistered reduction taking effect from 1 January 2027. As always, providers must discuss any proposed changes to existing service agreements with participants, and participants must agree before changes are made. For official details and location lists, refer to the NDIS Pricing Schedule at NDIS.gov.au.

Official source

For the full, official details, read the NDIA's NDIS pricing updates page, where you can download the Annual Pricing Review for 2026-27 and the NDIS Pricing Schedule.

Key Takeaways

  • Prices for unregistered SCCP providers are recommended to reduce by 10% from 1 January 2027, with indexation ceasing; registered provider prices are maintained.
  • A new two-tier Isolated Towns framework is recommended, replacing the single Isolated Towns Modification approach.
  • Type 1 Isolated Towns retain MM 6 reclassification and the relevant loading and travel arrangements, under an updated definition.
  • Type 2 Isolated Towns allow providers to negotiate travel costs (no additional loading) where locations meet defined criteria on classification, plan utilisation, travel time and socio-economic disadvantage.
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