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NDIS explained

Is psychosocial disability covered by the NDIS?

Updated 19 October 2026 · Checked against official NDIS and government sources

In plain English

Yes. The NDIS covers psychosocial disability, which is disability that can arise from a mental health condition. You can be eligible if the impairment is permanent or likely to be permanent, even if your symptoms come and go, and it substantially reduces your ability to manage everyday life. The NDIA prefers evidence on the Evidence of Psychosocial Disability Form, with a functional assessment such as the LSP-16.

What psychosocial disability means

A mental health condition is a diagnosis. Psychosocial disability describes its impact: the barriers a person faces in daily life, relationships, work and community because of it. Not everyone with a mental health condition has a psychosocial disability, and the NDIS is only for those whose disability is significant and likely to be lifelong.

The NDIS Act names it directly. One way to meet the disability requirements is to have one or more impairments to which a psychosocial disability is attributable.

Can you be eligible if your symptoms come and go?

Yes. The Act says an impairment that varies in intensity, or is episodic or fluctuating, can still be permanent. What matters is whether the underlying impairment is enduring and whether available treatments are likely to remedy it.

You also need to show it substantially reduces your capacity in at least one area, such as social interaction, self care or self management. Self management often matters most here: planning your day, keeping appointments, handling money and coping with problems.

The evidence the NDIA looks for

For a primary psychosocial disability, the NDIA asks for a statement from a treating health professional plus a functional assessment. Your treating professional can complete the Evidence of Psychosocial Disability Form, Section 2 of the Access Request Form, or send existing reports.

The NDIA's preferred functional assessments, in order, are:

  • LSP-16 (Life Skills Profile), which looks at everyday skills of people with mental illness
  • HoNOS (Health of the Nation Outcome Scales), a clinician rated measure of health and social functioning
  • WHODAS 2.0, a general measure of disability across six areas of life

Making your evidence count

  • Use a professional who has treated you over time, such as a psychiatrist, GP, psychologist or mental health nurse
  • Describe your hard periods: how often they happen, how long they last and what you cannot do during them
  • List the treatments you have tried, for how long and what happened
  • Count prompting, reminders and supervision as help you need
  • Ask someone who knows you well to add what they see

A recovery approach

NDIS support for psychosocial disability is meant to be recovery oriented. Recovery means living a meaningful life on your own terms, with or without symptoms, and support should build hope, skills and connection rather than dependence.

Many participants have a psychosocial recovery coach, funded in the same category as support coordination. A recovery coach helps you plan, connect with services and work towards your goals, using lived experience or mental health knowledge. The 2026/27 price limit for recovery coaching on a weekday during the day is $110.44 an hour in most of Australia.

What the NDIS funds, and what it does not

The NDIS funds disability supports, such as help with daily living, community participation, skill building, recovery coaching and therapy that builds functional capacity. Clinical mental health treatment, crisis care and hospital care remain the job of the health system, including Medicare and state mental health services.

From 1 October 2026, social, economic and community participation budgets are reduced by 50% and improved daily living skills budgets by 10% when a plan is created, reassessed or renewed. Many people with psychosocial disability use these budgets, so check your new plan carefully and talk with your providers about priorities.

If you are not eligible

You can ask for an internal review within 3 months, or reapply with stronger evidence. If you do not qualify, support may be available outside the NDIS, including the Commonwealth Psychosocial Support Program and services through your local Primary Health Network.

What changes from 2028

From 1 January 2028, access will be based on a standardised assessment of functional capacity, and permanence will include whether appropriate treatment has been tried. Nobody is forced to have treatment. A Technical Advisory Group is advising on how fluctuating and episodic conditions are assessed, and current participants will be reassessed over 3 years.

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Common questions

Can you get the NDIS for anxiety or depression?

It depends on the impact, not the diagnosis. If the condition causes a psychosocial disability that is permanent or likely to be permanent and substantially reduces your everyday functioning, you may be eligible.

What form do I need for a psychosocial disability application?

The NDIA prefers the Evidence of Psychosocial Disability Form, completed by your treating professional, together with a functional assessment such as the LSP-16, HoNOS or WHODAS 2.0.

Does the NDIS pay for a psychiatrist or mental health treatment?

No. Clinical treatment is funded by the health system. The NDIS funds disability supports that help you live your life, such as daily living support, recovery coaching and skill building.

What is a psychosocial recovery coach?

A worker with lived experience or mental health knowledge who helps you plan, coordinate supports and work towards recovery. Recovery coaching is funded in the support coordination category of your plan.

Will I lose my NDIS access if I get better?

Not automatically. From 2028 current participants will be reassessed against new criteria over 3 years, and the NDIA will tell you well in advance. You can ask for a review of any access decision.

Sources

This page is general information, not advice about your plan. NDIS rules change, so check the NDIA or your plan manager before making decisions.

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