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Policy and Advocacy update – 14 May 2026

Published: Thursday 14 May 2026

No OTs, No NDIS: OTA launches national campaign

Today we formally launch No OTs, No NDIS, a national campaign powered by OTs from across Australia.

For nearly a decade, occupational therapists have delivered essential services under pricing and workforce settings that undermine participant outcomes and place growing pressure on families, communities and the broader support system. Despite this, you have continued to show up for participants - keeping people safe, supported and moving forward as the system made it harder.

OTA has stood alongside you throughout, advocating against NDIS workforce conditions that undermine essential practice. Despite sustained advocacy, strong evidence and widespread support, little has changed.

In just the first five months of 2026, the Government has announced major NDIS reforms, including proposed budget cuts of 10% to capacity building supports. Together, these decisions will significantly impact the occupational therapy workforce and restrict participants’ ability to live independent, meaningful lives.

In response, today we launch No OTs, No NDIS – a national campaign calling on the NDIA and Federal Government to protect access to essential occupational therapy services and build a sustainable workforce, including fair travel reimbursement, a national allied health pricing strategy, reversal of the proposed cuts, and operational reforms that support safe, consistent practice.

Join the campaign and help drive the change our workforce needs.

Federal Budget 2026-2027 – What it means for Occupational Therapy

On Tuesday night, the Treasurer handed down this Government’s fifth Federal Budget. Alongside property tax reform, NDIS reform is a central feature of this Budget, confirming the Government’s intention to significantly reshape eligibility, assessment, planning and access to services and supports.

These changes will have material implications for occupational therapists and people they work with, particularly those working in disability, early childhood, psychosocial supports and aged care.

Read this update for our initial summary of Budget measures most relevant to the occupational therapy workforce. We will continue to analyse the detail as it becomes available and advocate on issues of concern to the profession.

Members are encouraged to register for the Member Forum on Friday 15 May, where we will unpack the implications in more detail.

New NDIS Bill introduced today, including 10% reduction to capacity building daily activity supports

Today, following the major reforms confirmed in the Federal Budget on Tuesday night, the Australian Government introduced the NDIS Amendment (Securing the NDIS for Future Generations) Bill, proposing significant changes to eligibility, planning, funding and governance of the Scheme. The Bill tightens access criteria, restricts reassessments, limits plan flexibility and introduces new mechanisms that allow funding reductions across entire groups of supports. 

Of particular concern are proposed budget cuts from 1 October 2026, including a 10% reduction to capacity building daily activity supports and a 50% reduction to social, civic and community participation supports. These cuts will directly affect participants’ ability to build skills, maintain independence and participate in everyday life, with real impacts on inclusion and wellbeing. 

OTA is deeply concerned about the new mechanism enabling funding reductions across groups of supports and the precedent this sets for future restrictions. The Bill is being referred to an Inquiry, which will be reporting back on 16 June. The Inquiry has not yet opened but we will update members once it has. OTA will prepare a submission to raise our concerns and will advocate directly to Government and politicians. Bill submissions close 29 May.

You can find more info via these links:

DVA occupational therapy fees to increase from 1 July 2027

Following sustained advocacy by OTA, alongside broader, collective advocacy across the allied health sector, we have confirmed that the Federal Budget’s increase in DVA allied health funding includes higher fees for occupational therapy.

This is a significant advocacy win for the profession.

What’s been announced

The Budget includes a package of measures designed to improve allied health service viability and reduce red tape, including:

  • Increased allied health fees, aligned with NDIS rates
  • $169.7 million to support allied health service sustainability
  • Removal of treatment cycle requirements
  • A new annual allied health cap of $5,000 per veteran from 1 July 2027, replacing current treatment cycles

In total, the Government is investing $173.7 million in veterans’ health over five years from 2025–26, including $58.8 million per year ongoing.

What this means for occupational therapists

For OTs working with veterans, these changes have the potential to:

  • Improve service sustainability
  • Reduce administrative burden
  • Better support access to timely, appropriate care

OTA welcomes this increased investment in allied health services for veterans. We are already engaging directly with the Department following the Budget announcement to seek further detail on the proposed changes, consultation process, and implementation timeline.

We will continue to keep members updated as more information becomes available.

NSW Thriving Kids – Momentum is building and we need to keep it going

Since we shared an update on the NSW Thriving Kids procurement process last Friday, more than 50 occupational therapists have already emailed the NSW Department of Communities and Justice (DCJ). That response is significant. It tells DCJ, clearly and collectively, that private paediatric occupational therapists are paying attention and that we are deeply concerned about the direction of Thriving Kids. 

Since then, the DCJ has shared that they are exploring the option of establishing a procurement process for a panel arrangement for private allied health practitioners. They have said that further information will be provided in the second half of 2026.  

But this issue is far from resolved. Our advocacy is working and now is the time to keep the pressure on. Read more here about what we are doing and how you can take action, too. 

Thriving Kids – Tasmania and Western Australia

The Tasmanian State Government has opened consultation sessions for members to help shape local implementation. The Western Australian Government is also seeking feedback from service providers and community organisations. Their survey closes on Sunday 17 May. Read more here. 

NDIS operational reforms – Share your ideas

OTA is preparing a submission to the Joint Standing Committee on the NDIS for the Annual Report No. 2 of the 48th Parliament. As part of the submission, we are seeking feedback from members on ideas for NDIS Operational Reforms. For example, many OTs have often suggested we could make improvements to assessments, assistive technology, environmental modifications and skill building within the scheme.   

If you have ideas to share, please email policy@otaus.com.au by 20 June.

Disability Peer Support & Connections Program 2026–27

The Australian Government has launched an open competitive grant funding opportunity for organisations supporting people with disability, their families and carers. The Disability Peer Support and Connections Program is the next phase of disability supports, building upon recent reforms to the Information, Linkages and Capacity Building (ILC) Program. 

Funded organisations will share in up to $517 million over 5 years, to deliver programs that boost independence and empower people with disability to make their own decisions and speak up for themselves. 

Grant applications can be submitted here by 2pm on 2 July. For queries, please email Grant.ATM@health.gov.au.

Help shape veteran mental health services

Are you passionate about veteran mental health and wellbeing? EOIs are now open to join the Open Arms National Advisory Committee. This is an opportunity for OTs to contribute their expertise, help shape national services delivery, and strengthen the visibility of OT within veteran and psychosocial care. We encourage members with experience or interest in mental health, trauma informed practice or veteran wellbeing to consider applying. 

Visit the DVA website to apply.

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