Does the NDIS Fund Psychology? A 2026 Guide
Does the NDIS fund psychology in 2026? Learn when psychology may be an NDIS therapy support, the health-system boundary, evidence requirements and when to refer.
Psychology can be funded as an NDIS therapy support when it meets the NDIS funding criteria and is directed at disability-related functional needs and outcomes. However, the NDIS does not replace Australia's mainstream health and mental health systems.
That boundary is important. Not every psychology service required by a person with disability is necessarily an NDIS support.
The short answer: the NDIS may fund psychology that helps a participant build or maintain skills and independence related to their disability. Psychology that mainly focuses on diagnosing or treating a mental health condition is generally the responsibility of the health system. This guide explains where that line sits, what evidence helps, how psychology compares with Positive Behaviour Support and neuropsychology, and how Support Coordinators can make a stronger referral.
What NDIS psychology can look like
NDIS psychology may support functional areas such as emotional regulation, interpersonal functioning, coping, decision-making, problem-solving, adjustment and psychosocial functioning where these needs relate to disability and the participant's goals.
In practice, this might include helping a participant:
develop strategies to manage changes in routine so they can travel independently
build social skills to join a community group or keep friendships
improve organisation and motivation so they can stay in work or study
learn problem-solving strategies for everyday tasks, such as shopping or leaving home alone
The NDIA's therapy supports guidance lists psychology among the therapy supports the NDIS can fund. It explains that therapy supports should be evidence-based, help improve or maintain a person's skills and independence, and, for capacity building, have clear goals, outcomes and a timeframe.
Learn more about CARED's NDIS Psychology service.
What the NDIS generally does not fund
Services whose primary purpose is diagnosis or clinical treatment of a health or mental health condition may be the responsibility of mainstream health services rather than the NDIS. The correct pathway depends on the nature and purpose of the support.
The NDIA's guide Would We Fund It? Psychology Supports and Mental Health (August 2026) explains that clinical mental health supports, including assessment, diagnosis, monitoring and symptom-focused treatment, are provided through the health system. These services may be partly funded by Medicare, for example through a mental health care plan from a GP.
The same guide notes that:
NDIS funding cannot be used for a service already funded by another system
NDIS funding cannot be used to cover Medicare gap payments
treatment for co-occurring conditions, such as drug or alcohol dependency, is the responsibility of the health system
A useful referral therefore describes the functional problem and desired disability-related outcome rather than simply asking for "psychology".
Psychology and psychosocial disability
People with psychosocial disability may have disability-related functional needs that psychology can help address. NDIS and mainstream mental health services can operate alongside one another. The NDIS may address disability-related functional impacts while the health system remains responsible for clinical mental health treatment.
Psychology vs Positive Behaviour Support
Psychology may be appropriate for direct therapeutic work on emotional, behavioural or psychosocial functioning. Positive Behaviour Support may be more appropriate where behaviours of concern require functional behaviour assessment, environmental strategies and coordinated implementation by the participant's support team.
Some participants need both, with clearly differentiated roles. Read more in Psychology vs Positive Behaviour Support: Which Does Your NDIS Participant Need?
Psychology vs neuropsychology
Psychology commonly focuses on emotional, behavioural and psychosocial functioning. Neuropsychology provides specialised assessment of cognition, including memory, attention, learning and executive function. If the referral question is primarily cognitive, neuropsychology may be the better starting point.
What evidence may be needed?
Evidence should explain:
the participant's disability-related functional needs
the purpose of psychology and the goals being addressed
the expected functional benefit
how often and for how long therapy is recommended, and why
for ongoing therapy, the progress made and outcomes achieved
The NDIA considers this evidence against the NDIS funding criteria. This includes whether the support relates to the participant's disability, builds or maintains functional capacity, represents value for money and is not already funded by another system. Current NDIA guidance emphasises evidence-based therapy and clear participant outcomes.
If psychology evidence is needed for a plan reassessment, read What Evidence Do You Need for an NDIS Plan Reassessment in 2026?
How Support Coordinators can make a better psychology referral
Describe the problem in functional terms. For example: "The participant becomes overwhelmed by changes in routine and cannot use public transport without support" is more useful than "participant has anxiety".
A strong referral also includes:
current supports, including any mental health or GP involvement
risks and safety considerations
communication needs and preferred ways of engaging
relevant reports and previous therapy
what you hope psychology will help the participant achieve
Participants who are new to psychology may find it helpful to read how to prepare for a first psychology session or what to expect from a psychology telehealth session.
How CARED can help
CARED provides Psychology alongside Positive Behaviour Support, Neuropsychology and other allied health services. If the referral sits between disciplines, our team can help identify the most appropriate pathway before appointments are booked.
Next step
This article is general information rather than individual clinical or NDIS advice. NDIS rules and guidance can change, and funding decisions depend on each participant's plan and circumstances.
Refer for NDIS psychology or ask CARED whether Psychology, PBS or Neuropsychology best fits the participant's needs, or contact our team.
Frequently asked questions
Can NDIS psychology treat anxiety or depression?
It depends on the purpose of the support. Mainstream health services are responsible for clinical treatment of health and mental health conditions, while the NDIS may fund supports addressing disability-related functional impacts where funding criteria are met.
Does a participant need a psychosocial disability to receive NDIS psychology?
Not necessarily. The relevant question is whether psychology is an appropriate disability-related therapy support for the participant and meets NDIS funding criteria.
Can NDIS psychology be delivered by telehealth?
Yes, telehealth may be clinically appropriate for some participants. Suitability depends on the participant’s needs, preferences, risk and therapeutic goals.
Does having Psychology in a plan guarantee ongoing funding?
No. Supports are considered under NDIS rules and individual circumstances, and evidence of goals, outcomes and ongoing need may be relevant at reassessment.
This information is general in nature and is not a substitute for individual clinical advice. NDIS funding and support decisions depend on each participant's plan, goals and circumstances.
Written by Cate
Head of Marketing and Operations
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