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NDIS explained

What is the NDIS psychosocial disability stream?

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

In plain English

The psychosocial disability stream is the NDIA's tailored approach for people whose disability comes from a mental health condition. Announced on World Mental Health Day in October 2018, it introduced specialised planners and local area coordinators, better links between mental health services and NDIA staff, and recovery based planning that allows for episodic needs. It was followed by psychosocial recovery coaches in 2020 and a recovery framework in 2021.

Why a separate stream was created

The standard NDIS pathway did not always fit people with psychosocial disability. Needs can change from month to month, the language of permanent disability can feel at odds with recovery, and planning works best with people who understand mental health.

The stream was the NDIA's response: a way of working that recognises episodic needs and puts recovery at the centre.

What the stream includes

  • Specialised NDIA planners and local area coordinators with mental health knowledge
  • Better links between mental health services and NDIA staff, so people are referred and supported more smoothly
  • Recovery based planning, focused on living a meaningful life with or without symptoms
  • Planning that allows for episodic and fluctuating needs, so support can flex when things get harder

Psychosocial recovery coaches

On 1 July 2020 the NDIS introduced the psychosocial recovery coach. A recovery coach helps you plan your recovery, build skills, connect with services and work through the NDIS itself. Coaches bring lived experience of mental health recovery, professional mental health knowledge, or both.

Recovery coaching is funded in the same category as support coordination. For 2026/27 the price limit on a weekday during the day is $110.44 an hour in most of Australia.

The recovery framework

In December 2021 the NDIA released its Psychosocial Disability Recovery Oriented Framework. It sets out how the NDIA aims to improve the experience of participants with psychosocial disability, by building recovery oriented practice into how staff, partners and providers work.

In practice, recovery oriented support should build hope, skills and connection, respect your choices and avoid making you more dependent on services than you need to be.

How to make the most of it

  • When you contact the NDIA, say that your primary disability is psychosocial and ask whether a planner or LAC with mental health experience is available
  • Describe your hard periods: how often they happen, how long they last and what you cannot do during them
  • Ask for a recovery coach if you want help with recovery planning and navigating services
  • Keep your treating team involved, since clinical treatment stays with the health system
  • Ask someone who knows you well to come to meetings

What is changing from 2026

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 rely on these budgets, so check new plans carefully.

Participants start moving to new framework planning from 1 April 2027, with budgets set from a support needs assessment. From 1 January 2028 new access rules based on functional capacity begin, and a Technical Advisory Group is advising on how fluctuating and episodic conditions are assessed. Current participants will be reassessed over 3 years.

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Common questions

Do I need to ask to be in the psychosocial stream?

There is no separate application. Tell the NDIA your primary disability is psychosocial and ask for a planner or LAC with mental health experience.

Can I get the NDIS if my mental health goes up and down?

Yes. The NDIS Act says an impairment that is episodic or fluctuating can still be permanent, as long as it substantially reduces your functional capacity.

What does a psychosocial recovery coach do?

A recovery coach helps you plan your recovery, build skills, connect with services and manage your NDIS supports, drawing on lived experience or mental health knowledge.

Does the NDIS fund mental health treatment?

No. Clinical treatment, crisis care and hospital care stay with the health system. The NDIS funds disability supports that help with daily life and recovery.

What if I am not eligible for the NDIS?

Support may be available through the Commonwealth Psychosocial Support Program and your local Primary Health Network.

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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