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In deep water: paediatric allied health NDIS providers should read the Grattan Report

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The Big Picture:

On 29 June 2025, the influential Grattan Institute published a 108-page report with proposals to save the NDIS (link below).

Many allied health providers were distracted by financial year-end and compliance tasks to comply with the (now live) Pricing Limits for 2025-26.

But the report is well worth a read – particularly for paediatric allied health providers who own or work out of clinics.

Attention-grabbers:

The report authors, led by former NDIA senior policy advisor Dr Sam Bennett, propose several very significant changes:

  • Abolish the early intervention pathway (i.e. section 25 of the NDIS Act) (pp57, 83).
  • Abolish individualised funding for all children under 18 who are or would have otherwise been supported through the early intervention pathway (pp31, 57).
  • Redirect funds to replace the early intervention pathway with “muscular” Foundational Supports (pp56-59):
    • general supports: information and education; and
    • targeted supports, including “low-to-mid-level allied health supports to improve the long-term capabilities of children” (p13).
  • Governments to co-commission Foundational Supports:
    • with 3-5 year contracts (pp49, 71), including for “evidence-based services” to “encourage providers to offer higher-quality programs” (p57); and
    • from “lead providers” that have the capacity and systems to manage a group of sub-contractors (pp50, 73).
  • Adopt a Key Worker model to help families navigate options (p54).
  • 5-year transition to avoid service gaps and give providers “sufficient time to prepare” but with the transition to start from 1 July 2026 (p60).
  • All Foundational Supports – and thus all early intervention therapies – for children to be delivered in natural environments – not clinics – including in “supported playgroups, early childhood education settings, health and community hubs, libraries, and family- and community-led organisations” (pp30, 57).
  • No mandatory registration of allied health providers to provide Foundational Supports. Recognition of AHPRA registration/regulation by a professional body (p75).
  • Better national sharing of provider information, and better integration of provider registration and worker screening checks (pp75-76).
  • Retain individualised plan funding for children with lifelong and severe disability (i.e. for children who meet the disability requirements under s 24 of the NDIS Act) (p57).

Reality check:

These are proposals from a think tank – not government policies. But the report is well-researched and written, and is likely to get the attention of policy decision-makers, as well as media and social media critics of the NDIS.

Bottom line:

Participant and disability advocacy groups will have a lot more to say about the report and the implications for access, and for choice and control over allied health early intervention services.

But paediatric allied health providers should also consider the report when reviewing their business strategies and risks for 2025-26 and beyond.

If implemented, the Grattan proposals would:

  • transform early intervention allied health service-delivery across Australia; and
  • accelerate the sector-wide shake-out of paediatric allied health service providers.

Go deeper:

Bennett, S., Jessurun, M., and Orban, H. (2025). Saving the NDIS: How to rebalance disability services to get better results. Grattan Institute.

Targeted Foundational Supports consultations: an “idea salad” with more questions than answers for allied health providers?

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Last week, we attended two, lengthy webinars hosted by the team at The Social Deck, on behalf of the Department of Social Services, about Foundational Supports, including Targeted Foundational Supports. Our key takeaways for allied health providers of paediatric services are as follows*: 

State of play: 

  • Consultation period ends on 5 December 2024. Soon!
  • Weirdly, negotiations between governments are happening completely separately from community stakeholder consultations.
  • No update on the status of negotiations between the states and the Federal government, who will share the costs, 50:50. 

General impressions:

  • Lots of stressed attendees. (Lifeline number shared!)
  • Frequent reminders from convenors that “we won’t be able to answer some of the specific questions about how foundational supports might work in the future” because they depend on what governments may decide to do.
  • Lots of very good ideas, but not clear how they could all work together in the real world. (One participant described the session as an “idea salad”, which I borrowed for the title.) 
  • Private practitioners appeared to be under-represented in discussions, perhaps because the webinars occurred:
    • in the middle of working days; and 
    • so close to the calendar year-end. 

General themes:

Targeted Foundational Supports should:

  • include early recognition and assessment of needs;
  • be family-centred and holistic;
  • be consistent and continuous;
  • include disability-led organisations; and
  • include robust quality, safety and accountability controls.

Attendee concerns, including about:

  • NDIS changes and children falling through the “cracks” right now;
  • allied health workforce readiness, including training pathways and supervision;
  • gaps between evidence-based practices and front line realities;
  • how to ensure consistency and continuity of services;
  • how best to engage families and deliver family-centred care; and
  • how supports will work in rural and remote areas and for CALD populations.

Services delivery preferences:

General – but not unanimous – preferences for:

  • a move away from one-to-one, clinic-based therapy;
  • transdisciplinary and multidisciplinary teams;
  • service delivery in naturalistic settings using existing (public) infrastructure;
  • systems that promote longer-term relationships between families and professionals;
  • a movement away from medical models of care; and
  • key workers and allied health assistants having significant roles in the new system.

Many big questions remain:

  • Who will be eligible to deliver targeted supports and how will they be registered/certified? 
  • Who will employ, train, and supervise them? 
  • How (if at all) will allied health professionals access some settings, e.g. in states like NSW without a long history of integrated health/education service delivery?
  • Who will oversee and audit services, including outcomes?
  • How will services be funded? (Fee for service, block funding, fees for outcomes?)
  • What intensity of support is envisaged? (The consultation paper appears to envisage low intensity supports.)
  • Will recipients have any choice and control?
  • How (if at all) will upcoming elections affect the proposals, including their timing?

Lots of questions. Few answers.

Read more: 

Paediatric allied health clinic owners: things are not looking great when it comes to Targeted Foundational Supports

Foundational Supports for children with developmental concern, delay and/or disability and their families, carers and kin Consultation Paper 

Foundational Supports | Department of Social Services

* Any errors of interpretation are – as always – completely our own. 

We’d like to thank Mel Butcher and the rest of the team at The Social Deck for the work they are doing under enormous time pressures. 

Key personnel of allied health NDIS providers: your legal risks will almost certainly increase in 2025 

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Big Picture: 

Consultation is underway on proposed reforms to strengthen the regulatory powers of the NDIS Commission. 

If enacted, the proposed changes will increase legal risks for providers and for their key personnel, including directors and executives of allied health providers.

What to watch:

Proposed additional:

  • statutory duties for providers and for key personnel of providers;
  • penalties for non-compliance;
  • restrictions on advertising and marketing for NDIS supports;
  • obligations to provide documents and information to the NDIS Commission; and
  • requirements to hold information in Australia. 

New statutory duty owed by providers:

Provider obligation to ensure, as far as is reasonably practicable, that the conduct of the provider does not cause adverse effects to health and safety of participants while the provider is delivering those supports and services.

Breaches would attract a civil penalty.   

New statutory duty owed by key personnel (personally):

Key personnel to exercise due diligence to ensure the NDIS provider complies with its NDIS Act obligations. 

Likely to impose clear obligations on key personnel to train staff, manage risks, oversee and investigate incidents, and to address complaints.  

New proposed penalties for providers include:

  • criminal offences for serious failures to comply with conditions of registration; and
  • significantly increased maximum penalties for serious harm or death of a participant.

Anti-promotion orders

  • Restrictions on advertising and marketing that undermines the integrity and principles of the NDIS.
  • Broadly consistent with existing allied health professional and ACCC advertising rules.
  • Will capture shopping coupons and other exploitative and inaccurate advertising. 

Expanded information-gathering powers:

Proposed powers to: 

  • require providers to provide documents and information; and
  • require information be provided in less than the current 14-day timeline. 

Provider information must be held in Australia:

  • Information that is cloud-based and held overseas is sometimes hard to get. 
  • All providers will be required to hold information within Australia.

Have your say and plan for 2025: 

  • The consultation period ends on 20 December 2024. Give feedback as explained on the NDIS Commission reform hub.
  • Ahead of any changes, review your risk management systems, including your provider and key personnel insurance arrangements to ensure they remain adequate. 

Go deeper:

Consultation on proposed changes to the NDIS Act (Bill 2)

Reform Road Map (as at 20 November 2024)

Allied health clinic owners: avoid chaos by focusing on strategic constants in a time of rapid change

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Big picture:

In Australian markets for private allied health services, things are a bit all over the place at the moment:

  • Some clinics have closed, while new ones launch, and others aggressively expand.
  • Some clinic owners are going all in on the NDIS and future Foundational Supports, while others are reducing their NDIS work and looking to other markets.
  • Some clinic owners read every government announcement and paper, then scramble to adapt, while others wait to see what will happen.

Behind the scenes:

Each allied health clinic owner has to decide for themselves how best to respond to rapid changes, including: 

The problem:

“Agility” is a terrible business buzzword. But it’s almost impossible – and dangerous – to try to keep up with every change while running quality practices, helping clients, and managing a team. Attempting to respond to every change:

  • spreads limited resources too thinly;
  • weakens the focus on core competencies;
  • lures us into chopping and changing what we do without enough thought;
  • fosters a focus on short term opportunities and quick returns; and
  • can lead to organisational chaos, as we attempt to realign operations, processes, staff and culture to ever changing goals.   

A solution:

Filter out transient factors, and instead re-commit to strategic constants, including:

  • core values;
  • client relationships;
  • key competencies; and
  • brand identity.

Case in point:

When Netflix transitioned from DVD-mailing to streaming, it understood that its key competitive value was derived from its core offering – delivering great content to customers – not from how it did it. This enabled it to make a major change to service delivery while staying true to its mission.

Zoom in:

Liao and Zhu (see link below) recommend a 4-step process for creating a strategically constant business in a time of rapid change. Paraphrased for allied health business owners, our key takeaways are as follows:

  1. Start at the end: What’s your mission? What broad objectives can you set to achieve it in any market conditions?
  2. Identify your strategic constants: What factors are relevant today and are likely to continue to be so in the future?:
    1. Demand: The needs and preferences of your clients, e.g. for quality services, safety, convenience, and reputation.
    2. Supply: Operational efficiencies, e.g. from workflows, delivery systems, and continuous improvement process in service delivery.
  3. Match constants to capabilities: Review your strengths. Focus your strategy either on your demand or supply constants (not both to start with or you’ll lose focus and run out of resources).
  4. Adapt around constants: Use your constants to set the boundaries for your decisions about how best to adapt to changes, including which services to offer, and which technologies to adopt.   

Bottom line:

To create both stability (to take advantage of past successes) and agility (needed to evolve to exploit new opportunities related to your mission), clinic owners should review their business strategy and objectives to identify and prioritise strategic constants, while staying flexible about how to adapt to regulatory, market and other changes. 

Go deeper:

Liao, J. and Zhu, F. (2024). How to Avoid the Agility Trap, Harvard Business Review, November-December issue.

Allied health providers: get up to speed on the key NDIS reforms that will affect your practice (a free resource)

Allied health NDIS providers: back yourself to try new things, and help more people: a case study

Paediatric allied health providers: let’s tackle our NDIS worries by improving our services, bit-by-bit, and monitoring general reform trends

Will NDIS reforms and foundational supports trigger the end for many paediatric allied health clinics?

Blood from a stone: What allied health NDIS providers can do to improve their lot

How will allied health NDIS providers survive? Some difficult choices ahead

Paediatric allied health clinic owners: things are not looking great when it comes to Targeted Foundational Supports

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Another week, another consultation paper. And, as an independent speech pathology clinic owner who sees many children with developmental delays and/or disability, this one did not speak to my inner optimist.

1. But, first, a bit of context

Back in late September 2024, we wrote about the first Foundational Supports Consultation, looking at a consultation paper and webinar about General Supports. 

A second paper – Foundational Supports for children with developmental concern, delay and/or disability and their families, carers and kin Consultation Paper – has been released. It’s dated October 2024. But I only found out about it last week; and only then by accident while looking for something else.  

It’s more ambitious than the General Supports paper, and includes a discussion of “Targeted Foundational Supports” for children with developmental delay and their families who need more assistance than General Supports and mainstream services.

2. For strategy and business planning, paediatric allied healthcare providers need to understand what’s proposed

Targeted Foundational Supports are intended to include some allied health services, and so are of interest to paediatric allied health providers (like me), as we look to evaluate our service-delivery models to adapt to new systems of supports made up of three connected tiers:

  • mainstream early childhood education and school supports;
  • Foundational Supports, including Targeted Foundational Supports; and
  • a (yet-to-be developed) new early intervention pathway in the NDIS for children with the highest level of needs.

The idea seems to be that some families will access a combination of these supports, and perhaps different combinations of these supports at different stages as children’s needs change. 

The key challenges for allied health providers are how to work within and across such complex systems to deliver quality, evidence-based services to children while keeping staff satisfied with their work – and staying solvent!

3. Reality check: On the ground, funded supports for children with developmental delay and/or disability through the NDIS are shrinking

On a first read, page 9 of the paper caught my eye:

“The recent ‘Getting the NDIS Back on Track” changes to the NDIS Act do not change a child’s participant status or remove their access…Nothing is changing now.”

These statements are hard to reconcile with recent news stories, like this, with journalist Rick Morton reporting that:

  • the NDIA is sending out more than 1,000 eligibility reassessment letters each week;
  • in the last six weeks, almost 7,500 eligibility reassessments have been performed – 78% of which are on children aged up to 8 in the early intervention scheme – with 48% of the total being removed from the NDIS, and 20% being asked to provide more information (so-called “general evidence”) within 28 days if they “think they still meet the NDIS eligibility requirements and wish to continue with the NDIS”; and
  • the NDIA is completing around 1,250 eligibility reassessments per week, aided by 95 new dedicated staff.

“Nothing is changing now”? Many families and health care providers would disagree.

4. Two predictions, and a comment

A. Allied Health Targeted Foundational Supports will not be provided in clinics

According to the authors of the consultation paper:

  • the 2023 Independent Review of the NDIS found that, under the current system:
    • “supports for children with emerging developmental concerns and disability are too focused on a clinic-centred model of support and not enough on functional and support needs”; and
    • there was “not enough focus on supporting children in everyday settings where they live, play and learn” (see page 13);
  • decisions on how to deliver Targeted Foundation Supports are yet to be made by governments. But the options to be considered:
    • will look to use existing services and infrastructure to deliver supports to where children live, learn and play;
    • may be provided in group settings (helped by an allied health worker or a multidisciplinary team) or individually in a child’s natural environment;
    • mark a change of approach that “shifts away from a mostly one-to-one therapy model in clinical settings, which is not seen as best practice early intervention for most children”; and 
  • a child may have access to allied health:
    • through a referral to a group with other children getting similar supports “helped by an allied health worker or a multidisciplinary team”; or
    • individually in the child’s natural environment (page 18).

B. Allied Health Targeted Foundational Supports:

a. will be more limited than under the ‘former’ NDIS; and 

b. may not always be delivered directly by allied health professionals 

The paper’s authors state that some children could be eligible to get one or more of:

    • low intensity or periodic child and and family-centred allied health supports, including from speech pathologists, physiotherapists, psychologists, occupational therapists or other allied health specialists;
    • more intensive, one-to-one capacity-building from a (not specified) “suitably qualified and experienced worker” who could provide coordination and help families get appropriate supports. This support may be delivered jointly with allied health supports (page 17);
    • a one-off, low-cost assistive technology consultation to increase independence at childcare, school or home (page 18); and/or
    • extra supports if the child is “identified” as having concerns across a number of developmental areas, delivered by a “qualified and experienced person with child development expertise”. It’s not clear who will identify the concerns, or what qualifications, experience or child development expertise will be required (page 18). 

    C. A closing comment

    The consultation period appears to end at midnight on 5 December.

    Based on what happened with the NDIS supports consultation, a cynic might suggest that the Federal Government has already decided what it wants from Foundational Supports and will now work with the states to make it happen, regardless of what families or allied health providers think or say.  

    I don’t know. But it’s hard to justify spending significant time or resources responding to consultation papers when we have so many clients needing help, when so many changes are happening at once, as we approach calendar year-end and have already weathered so much change in such a short period.

    But we can’t ignore the changes, either. 

    Paediatric allied health clinic owners must start to think about whether they want to deliver Targeted Foundational Supports, recognising that:

    • adding Foundational Supports to service-mixes may:
      • increase business risks and complexity;
      • take away resources from other services and projects; and
      • affect staff satisfaction with our workplaces;
    • one-to-one or in-clinic models are unlikely to work;
    • therapy dose constraints may reduce outcomes;
    • service-delivery constraints may reduce control over service quality; and
    • cost-effective access to mainstream and other ‘natural’ settings may be difficult in some states and regions for logistical, compliance, or financial reasons.

    We must also remember that proposed changes will be hard to navigate and deliver for other stakeholders, too, including educators in childcare settings and schools, and governments. 

    As the authors of the paper note, effective, early child- and family-centred care, through the delivery of strength- and evidence-based services, can lead to significant improvements for children across developmental domains. We all want systems that deliver good outcomes for children and families.

    One other thing we must not forget: the stakes of getting this right are life-changingly high for children with developmental delays and/or disability and their families – particularly for children who are (or become) ineligible for the NDIS, but who need more help than is and will be available through mainstream services. 

    Read more: 

    Allied health providers: get up to speed on the key NDIS reforms that will affect your practice (a free resource)

    Allied health providers must review services for young participants to ensure they’re NDIS supports

    Will NDIS reforms and foundational supports trigger the end for many paediatric allied health clinics?

    Allied health NDIS providers: back yourself to try new things, and help more people: a case study

    Check out our NDIS provider and health provider resources Go to Shop