NDIS STR: What the $162.85 Daily Accommodation Cap Means for Participants

TL;DR: From 1 July 2026, the NDIS will cap its contribution to Short Term Respite (STR) accommodation costs at $162.85 per day for the participant, with separate funding available for support worker accommodation. This change affects how STR accommodation is funded, but participants can still access STR and choose preferred options, potentially paying any difference out-of-pocket. For a complete guide to these changes, See our complete ndis-short-term-respite-str-accommodation-funding-changes guide.

What is Short Term Respite (STR) and why is it important for NDIS participants?

Short Term Respite (STR) provides temporary accommodation and support for NDIS participants, playing a crucial role in maintaining their wellbeing and the sustainability of their informal support networks. This essential support allows participants to experience new environments, develop independent living skills, and receive necessary care in a different setting. Simultaneously, STR offers valuable planned breaks for families and informal carers, providing them with an opportunity to rest and recharge, confident that their loved one is receiving appropriate support. The availability of STR can significantly reduce carer burnout, strengthen family relationships, and ultimately lead to more sustainable and positive outcomes for everyone involved in a participant's care journey. It's a fundamental part of a holistic NDIS plan designed to promote participant choice, control, and community inclusion.

How Does the New $162.85 Daily Accommodation Cap Work for STR?

From 1 July 2026, the National Disability Insurance Agency (NDIA) is introducing a maximum daily amount it will contribute towards a participant's Short Term Respite (STR) accommodation. This cap means the NDIS will contribute up to $162.85 per day for the participant's accommodation costs. It's crucial to understand that this limit applies only to the accommodation component of STR. If a participant requires overnight support and their disability support worker needs a separate bedroom, the NDIS may also contribute an additional amount, up to $162.85 per day, for the support worker’s accommodation. This means the total potential accommodation funding for a participant and their essential support worker could be up to $325.70 per day, with each allocation being distinct. Importantly, funding for the actual support services provided during STR is entirely separate from these accommodation caps and will continue to be claimed against relevant support categories in a participant’s NDIS plan, in line with their individual needs and approved supports.

What if My Preferred STR Accommodation Costs More Than the Daily Cap?

If your chosen Short Term Respite (STR) accommodation exceeds the new daily NDIS funding limit of $162.85, you retain the choice to select that preferred option. The NDIS changes do not restrict your ability to choose accommodation that best meets your needs and preferences. However, if the accommodation costs more than the amount the NDIS is able to fund, you would then be responsible for paying the difference out-of-pocket. This ensures participants maintain control over their choices while clarifying the NDIS's financial contribution towards the accommodation component. It’s important to budget and plan for any potential gap if your ideal STR accommodation falls outside the NDIS cap, and to discuss these implications with your Support Coordinator or Plan Manager well in advance of any planned stay.

Does This Change Affect My Eligibility for Short Term Respite?

No, these changes specifically relate to the funding amount for Short Term Respite (STR) accommodation, not your eligibility to access STR itself. If you were previously deemed eligible for STR as a necessary and reasonable support in your NDIS plan, that eligibility remains unchanged. The NDIA's adjustments are focused solely on how much the NDIS will contribute towards the accommodation portion of your STR stay, not whether you can access STR at all. Participants can continue to seek and utilise STR to meet their support needs and provide planned breaks for their carers, just with new considerations regarding the financial aspects of the accommodation component from 1 July 2026. Your plan will still reflect your need for STR, but understanding the new cap will be vital for planning where and how you utilise this support.

How Can Participants Prepare for These Changes Before July 2026?

Preparing for the new STR accommodation cap is essential for NDIS participants and their support networks to ensure a smooth transition and continued access to necessary supports. A crucial first step is to engage proactively with your Support Coordinator or Plan Manager to understand how these changes might impact your current or future STR arrangements. Reviewing your NDIS plan to confirm your STR allocation and discussing potential accommodation options that align with both your needs and the new funding limits is highly recommended. You might need to explore a broader range of STR providers or consider different types of accommodation to find options that fit within the cap or to understand any potential out-of-pocket expenses. Open communication with your planning team will enable you to make informed decisions and budget effectively, ensuring your STR remains a valuable and accessible support.

Key Takeaways

• The NDIS will cap its contribution to participant STR accommodation at $162.85 per day from 1 July 2026.
• Separate funding up to $162.85 per day may be available for an essential support worker's accommodation if they require their own room.
• Support funding for services provided during STR is distinct from accommodation funding and remains unaffected by this cap.
• Participants can still choose accommodation exceeding the cap but will be responsible for paying the difference out-of-pocket.
• These changes do not affect a participant's eligibility for Short Term Respite; they only impact the accommodation funding amount.
• Proactively discuss these changes with your Support Coordinator or Plan Manager and review your budget to prepare for July 2026.