Nous report on the NDIA’s Annual Pricing Review
The Australian Physiotherapy Association (APA) has commissioned an independent review by the Nous Group examining the NDIA’s 2024–25 Annual Pricing Review with respect to physiotherapy. The findings provide compelling evidence the pricing approach is flawed and risks undermining provider sustainability, participant access and quality of care.
What we know
- The national price limit for physiotherapy has been set at $183.99 per hour for 2025-26, ignoring five years of stagnant pricing and CPI, and representing a 5.2 per cent reduction from the previous year, despite ongoing cost pressures on providers such as wages, compliance, professional development and service delivery expenses.
- The pricing methodology relies on insufficient and unrepresentative data points, limiting its ability to accurately capture the true cost of delivering safe, high-quality physiotherapy services across diverse settings.
- The determined rate is materially below sustainable market benchmarks. Independent market analysis indicates that the actual 75th percentile market rate sits between $215 and $259 per hour, highlighting a clear gap between the NDIA price cap and the actual cost of care.
- Private health insurance data further reinforces this misalignment, showing the 70th percentile session fee equates to $236.50 per hour, which is well above the NDIA’s proposed price limit.
- Cutting travel makes outreach unviable and breaks alignment with the Scheme’s own standards. It’s a funding flaw that penalises best practice and limits access where it’s needed most.
- The additional removal of the higher regional price loadings for Western Australia, South Australia, Northern Territory, and Tasmania has also significantly impacted physiotherapists.
- The review concludes the pricing approach risks undermining provider sustainability, creating barriers for physiotherapists to participate in the NDIS, and ultimately reducing participant access to timely, high-quality physiotherapy services.
How the APA is acting on this evidence
The APA has consistently raised concerns about the NDIA’s pricing approach and has worked tirelessly to ensure these findings reach decision-makers. Our advocacy has been grounded in strong evidence and a clear call for reform; constructively engaging with government while firmly challenging the NDIA’s flawed methodology.
The Nous review identifies clear opportunities for the NDIA to strengthen its methodology, including improving data quality, addressing flawed modelling assumptions and aligning prices with true market rates. Reforming the pricing model is critical to sustaining high-quality disability supports, protecting participant outcomes and supporting the long-term viability of the physiotherapy workforce.
The APA is now using the findings of this report to intensify our advocacy across government and the broader sector. We are meeting with ministers, shadow ministers and other key decision makers to ensure the evidence is understood and acted on. We are also sharing the findings through national media and social media to raise public awareness and highlight the impact these pricing decisions have on participants and providers.
These findings give us a robust benchmark for what sustainable physiotherapy pricing should look like. We’ll continue applying this evidence across all funding environments to push for fair pricing, strengthen provider viability, and defend the value of physiotherapy.
How you can help
If you have feedback or want to share your experience, we welcome your insights and stories. Your voice helps strengthen our advocacy. Share your feedback at policy@australian.physio.