What the cost model is for
Most NDIS core supports are delivered by disability support workers, so their price limits matter more than almost any other number in the scheme. The NDIA publishes the Disability Support Worker (DSW) Cost Model to show how those limits are calculated, and updates it with each year's pricing.
The model describes an efficient provider that employs its workers under the SCHADS Award. The NDIA says that where a provider employs workers under the social and community services part of the award, a price at the limit would be justified.
What goes into one billable hour
The model builds up the cost of a billable hour in layers:
- Base pay: the SCHADS Award hourly rate for the worker's classification
- Shift loadings: extra pay for evenings, nights, weekends and public holidays, which is why NDIS time of day prices differ
- Direct on costs: superannuation, leave entitlements and allowances
- Operational overheads: supervision, utilisation costs for time that cannot be billed, such as training and travel between clients, and workers compensation
- Corporate overheads: rent, IT, finance, compliance and management
- Margin: a small allowance for return on the working capital a provider needs
The four DSW levels
The model uses different assumptions for four types of worker, called DSW Level 1 to 4. More skilled levels have higher pay and more supervision costs, and sit behind prices for more complex supports. The 2026/27 model links each level to a SCHADS classification, with award hourly rates from 1 July 2026:
- DSW Level 1: SCHADS 2.3, $38.50 an hour
- DSW Level 2: SCHADS 2.4 or 3.1, $40.01 an hour
- DSW Level 3: SCHADS 3.2, $41.66 an hour
- DSW Level 4: SCHADS 4.4, $50.25 an hour
From the model to the price limit
Once the cost of each level and shift is worked out, it becomes the price limit for the matching support items. For example, the 2026/27 limit for standard weekday daytime assistance with self care activities is $73.58 an hour in most of Australia. Remote and very remote areas have higher limits.
The model assumes permanent workers, so a provider with a different workforce, more casuals or a different cost base will find its real costs do not match the model exactly. The price limit is a maximum, not a set rate, and providers can charge less.
Who decides the price now
Since 27 August 2026 the Minister for Disability and the NDIS, not the NDIA, decides NDIS price limits, using advice from the NDIA. The cost model is a key part of that advice. The 2026/27 limits were set in a pricing determination in September 2026, and support worker limits rose in line with the Fair Work annual wage increase.
On 11 September 2026 the Fair Work Commission decided on changes to SCHADS Schedule E as part of its gender undervaluation review, taking effect on 1 December 2026. The government has said the 2026/27 pricing schedule will be updated to reflect any required changes.
What it means for providers
- Compare your own cost of a billable hour with the model, line by line, to see where you are above or below it
- Watch utilisation: unbilled travel, cancellations and admin time are where most providers lose money
- Check your award classifications and shift penalties are correct, because the prices assume compliant pay
- Read the cost model and pricing schedule each year, and follow the Annual Pricing Review so you can make a submission
What it means for participants
The model explains why support workers cost what they do: the hourly price pays for much more than the worker's wage. Plan managed and NDIA managed participants cannot pay above the price limit. Self managed participants are not bound by price limits in the same way, but the limits are a useful benchmark for a fair rate.