NDIS psychosocial disability: what supports are available in 2025?

For people living with serious mental health conditions, the National Disability Insurance Scheme (NDIS) can provide crucial support. But understanding what psychosocial disability is – and what help the scheme can offer – isn’t always straightforward.

What is psychosocial disability?

Psychosocial disability describes the difficulties people face in daily life because of a mental health condition, such as schizophrenia, bipolar disorder or severe depression. This can include challenges with self-care, communication, memory, decision-making and staying connected socially or at work.

According to the Australian Institute of Health and Welfare (AIHW), around 10% of NDIS participants have a primary psychosocial disability. In the year to June 2023, the scheme spent more than $4.25 billion on supports for this group.

What supports can the NDIS fund?

Daily living and support workers
Funding can cover support workers to help with everyday tasks like cooking, shopping, cleaning, getting to appointments and managing routines. This practical assistance can prevent crises and help people live more independently.

Therapy and recovery supports
The NDIS can pay for psychologists, occupational therapists, social workers and recovery coaches. Recovery coaches are a newer role, designed to specifically help people with psychosocial disability by coordinating services and providing ongoing mentoring.

Community participation
Staying connected matters. Plans can include support to join social or hobby groups, build friendships, or learn new skills. These activities are important for reducing isolation and building confidence.

Housing and independent living
For people who need it, the NDIS can provide supported independent living (SIL), specialist disability accommodation (SDA), or tenancy support. These options are critical for people whose mental health has made it difficult to maintain stable housing.

Health and wellbeing
Plans can also fund programs to support physical health, such as exercise, diet and attending medical appointments. Since physical and mental health are closely linked, these supports often improve overall wellbeing.

Access remains a challenge

Not everyone who applies for the NDIS with a psychosocial disability is successful. Approval rates vary depending on age. In 2022–23, only about 19% of applications from people under 25 with a primary psychosocial disability were approved, compared with around 49% for those aged 25 and over.

Advocates say the process can be stressful and confusing, with long waits for decisions and high evidence requirements that many families struggle to meet.

Foundational supports on the horizon

The federal government is developing foundational supports – new services outside the NDIS – to help people with psychosocial disability who may not meet NDIS eligibility. These supports are being negotiated with the states as part of a new hospital funding agreement, expected to be finalised by the end of 2025.

Key takeaway

The NDIS can fund a wide range of supports for people with psychosocial disability in 2025 – from daily living assistance to therapy, housing and social connection. But barriers remain, and many families are watching closely to see how future reforms will improve access and ensure the right mix of supports inside and outside the scheme.