NDIS Cuts: How Physios Can Build Resilience
What the latest NDIS changes mean for physios—and how to future-proof your business.
The $183 Moment: A Structural Reckoning in Allied Health
The 2025 NDIS pricing review didn’t just reduce therapy rates. It exposed structural weaknesses in how many health businesses are set up. For too long, clinics have operated with a dependency on government-set pricing and the illusion of stability. Those days are over.
What Just Happened?
As of July 1st, 2025, the NDIS hourly rate for physiotherapy will drop from $193.99 to $183.99.
In WA, SA, NT, and TAS, where jurisdictional loadings once applied, this is effectively a $40.63/hour cut.
- Travel reimbursement now capped at 50% of the base rate
- Time limits for travel still apply (30–60 minutes)
- No loading applied to travel reimbursement
For regional providers in particular, this is a direct financial squeeze with no offset. Full pricing schedule here.
What This Signals
This isn’t just about money.
The government has reclassified physiotherapy. You are no longer over-indexed. No longer considered essential to scheme sustainability. The pricing reset reflects a policy judgment: services like physiotherapy are deliverable at lower cost and are broadly replaceable within the current market.
The problem? That market is not ready.
We’ve Been Here Before
This moment fits a broader pattern. In previous writing, I’ve broken down how:
What’s happening now is not a surprise. It’s the delayed consequence of a model that’s been structurally fragile for years.
What Happens Next?
- The government will not walk this back
- It has the political capital
- It has already traded this cut against other deferrals (like Support at Home)
- There is no unified provider voice, no strike, and no public backlash
And without leverage, policy holds.
What Do You Do Now?
You rebuild. Thoughtfully. Practically. Urgently.
- Reassess your reliance on NDIS-funded hourly services
- Reprice and repackage your value around private clients
- Understand your unit economics
- Shift from margin-by-luck to margin-by-design
If the model only works when the government is generous, it’s not a model — it’s a liability.
A Better Strategy Exists
I’m running a session on How to Build a 20% Profit Clinic. It’s designed for people who:
- Know they can’t scale on sessional work alone
- Want to diversify income streams
- Need to raise margins without burning out staff
- Are ready to reposition their business to survive whatever policy comes next
We’ll cover:
- Unit economics fundamentals
- Strategic diversification
- Private-first hybrid delivery
- The barbell strategy
This is not about quitting the sector. It’s about rebuilding within it — on your terms.
Explore the Circle Community
Inside Culture of One, our private founder community, we break down everything from pricing strategy to staffing structure and sustainable business design.
It’s built for clinic owners who want to grow with clarity — not just survive on subsidies.
