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What Parents Need to Know About the New NDIS Impairment Notice

Parent reviewing their child’s NDIS Impairment Notice at home and understanding the new system.

If you’re a parent of a child who receives support through the NDIS, you’ve probably heard about the introduction of the new Impairment Notice system, which began on 1 January 2025. This change will impact both new and existing participants, and understandably, it’s left many families feeling uncertain about what lies ahead.

Let’s break down what we know so far, the potential gaps in information, and how you can prepare for the changes as a parent navigating the Early Childhood Approach or other pathways within the NDIS.

What is an Impairment Notice?

The Impairment Notice is a new document issued by the NDIA (National Disability Insurance Agency) that confirms whether a participant has a permanent disability or significant impairment. It outlines the specific impairment categories that qualify them for NDIS support, ensuring funding aligns with their needs.

The impairment categories include:

  • Intellectual
  • Cognitive
  • Neurological
  • Sensory
  • Physical
  • Psychsocial

What Does This Mean for Children with Disabilities or Developmental Delays? 

If your child has a diagnosed disability, or has been identified as having developmental delays, the Impairment Notice will highlight the areas where their development is significantly impacted, helping to ensure that their NDIS funding is tailored to meet their specific needs. For example:

  • If your child finds it hard to cope with everyday sensations – like loud noises, bright lights, or the texture of certain clothes – they might be described as having a sensory impairment. This would mean their plan could include funding for therapies to help with sensory regulation, such as occupational therapy.

  • If they experience delays in physical skills, like walking, climbing stairs, or holding a pencil, they may have a physical impairment. This could open up funding for supports like physiotherapy or occupational therapy to help with coordination and strength.

  • If your child struggles to process and understand information, solve problems, or follow instructions, they might be classified as having a cognitive impairment. This could mean their plan includes supports like speech therapy to build understanding and language skills.

Your child’s Impairment Notice may also include more than one category. For instance:

  • If your child has challenges related to autism, their notice might include both neurological impairments (linked to brain function) and sensory impairments (like difficulties with noise or certain textures). This combination could lead to funding for multiple therapies, such as speech therapy for communication and occupational therapy for sensory needs.

  • If your child’s developmental delays affect their gross motor skills (like running or jumping) and fine motor skills (like holding cutlery or self-care tasks), the notice could include physical impairments, guiding funding for targeted interventions like occupational therapy or physiotherapy.

The Impairment Notice focuses on your child’s unique needs, not just a diagnosis or label. This means that the supports they receive should be as personalised as possible, ensuring that your child gets the help they need to thrive in their daily life.

Parent and child accessing NDIS-funded supports during a speech therapy session at Kids First Children’s Services.

What Does This Mean for Your Child’s NDIS Plan?

If your child is a new NDIS participant, their impairment notice will be issued as part of the access process when they are approved for the scheme.

For existing participants, the notice will be provided during your next plan review or when transitioning to a new plan. If your child doesn’t receive one immediately, there’s no need to worry – these notices will be rolled out gradually.

The notice will influence funding decisions, ensuring that supports align with the listed impairments. According to the NDIS, this shift from a diagnosis-based approach to an impairment-based system is intended to acknowledge that two children with the same diagnosis might have very different needs.

What Happens to Existing Supports?

One of the main concerns for many families is how the introduction of impairment notices will affect existing supports. Based on the information available, it’s likely that:

  • Existing supports will continue in the short term: If your child is already receiving NDIS-funded supports under their current plan, these supports are expected to remain in place until the next plan review or transition to a new plan.

  • Alignment with impairment notices may influence future funding: When it’s time for your child’s plan review, the NDIA will refer to the impairment notice to ensure that funding aligns with the impairments listed. This means that supports not directly linked to the categories on the notice may need to be reviewed.

If you’re worried about losing essential supports, it’s important to gather up-to-date documentation from your child’s therapists, doctors, and other professionals. These reports will help demonstrate the importance of specific supports and their alignment with your child’s identified impairments.

For now, the focus should be on ensuring that any supports included in your child’s plan are backed by strong evidence of their effectiveness and relevance to your child’s needs. As more details emerge about how this process will work, we’ll share updates to keep you informed.

Child receiving play-based speech therapy for developmental delays at Kids First Children’s Services, highlighting tailored NDIS supports.

How Can Families Prepare?

Even though some details remain unknown, there are steps you can take to feel more prepared and confident:

  • Keep Documentation Up to Date:
    Ensure you have recent reports from therapists, paediatricians, and other clinicians that detail your child’s needs and progress. These documents may be crucial during plan reviews or if you need to request a variation.

  • Ask for a Participant Information Access Request:
    If you’re unsure how your child qualified for the NDIS, you can request their Access Request Form (ARF) and supporting evidence used to approve their plan. This won’t replace the impairment notice but can give you insight into your child’s eligibility.

  • Stay Informed:
    The NDIA is likely to release more information as the system rolls out. Keep an eye on updates and attend any webinars or information sessions offered by your Local Area Coordinator (LAC) or Early Childhood Partner.

  • Seek Support from Advocates:
    If you’re feeling overwhelmed, consider reaching out to advocacy organisations or NDIS-funded support coordinators. They can help you navigate the process and understand your child’s rights under the new system.

What’s Next?

We understand that these changes can feel daunting, especially when there are still gaps in the information available. Here at Kids First Children’s Services, we’ll be keeping a close eye on how the Impairment Notice system unfolds.

We’re here to support families like yours every step of the way. Whether you need help preparing for a plan review, understanding how the changes affect your child’s supports, or just someone to talk to about the process, our multi-disciplinary team of experienced clinicians is ready to assist.

If you have concerns or questions about your child’s NDIS plan, don’t hesitate to reach out to us. Contact us today on (02) 9938 5419 to book a consultation or follow this link to learn more

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We understand you,
We’re here for you.

Supporting Northern Beaches children from Manly to Mona Vale since 2007

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