NDIS price freezes have left hundreds of occupational therapy businesses on the brink of financial ruin, with thousands of NDIS clients at risk of being left without care.

New data from peak body Occupational Therapy Australia shows NDIS pricing related closures and service reductions impacting more than an estimated 17,300 people including more than 4,500 in regional and remote areas if the crippling seven-year price freeze on rates is not lifted.

The survey of more than 600 occupational therapy businesses showed more than half (55 per cent) failed to make a profit in the past financial year.

A staggering 14 per cent of businesses are already planning to close their doors and a further 50 per cent of providers are actively considering exiting the sector within the next three years.

The data shows the devastating impacts to service delivery in rural and remote communities, with 92 per cent of service providers saying they have had to cut back on travel and outreach to clients, and waitlists spiralling to more than three months for more than half of businesses.

The continued NDIS price freeze left OT services stuck at just $193.99 per hour - unchanged since 2019 - despite inflation surges and operational costs spiralling. Travel reimbursement rates for home visits have also been slashed by 50 per cent.

Occupational Therapy Australia Chief Occupational Therapist, Michelle Oliver, called on the Federal Government to immediately increase pricing and travel allowances to keep OTs across the nation in business. “We are beyond calling this a crisis, we are talking about market failure. We are now seeing providers being pushed to the brink and people unable to access the care they need most,” Oliver said.

“This survey is the canary in the coal mine. If swift action is not taken, we will see hundreds of therapists exit the sector. This will have grave consequences - especially for people in regional, rural and remote areas. "Providers are making untenable decisions in order to stay afloat. I have heard many examples of therapists forced to tell complex patients they can’t visit them at home, and rural providers shutting their doors. It’s a moral crisis and this is happening right now, not at some unknown date in the future," Oliver said.

“We know occupational therapists are the key to unlocking greater opportunities and independence for participants, and the vital profession in assessing the necessary supports and therapies that are the core promise of the NDIS."

OTA is calling for an immediate price uplift of at least 7 per cent, restoration of travel rates, and a thorough review to create an allied health-specific pricing model reflecting real-world business costs.

Read a summary of the key results from OTA’s 2025 NDIS Provider survey here.

Read OTA’s 2025 Provider Survey Full Report here.

Editor’s note:

Every year, the National Disability Insurance Agency (NDIA) conducts an annual pricing review to look at the prices in the NDIS Price Guide, which sets the maximum rates that providers can charge if they provide services to NDIA plan-managed clients.

OTs provide services under the ‘therapy supports’ NDIS item code, which is currently $193.33 per hour. This price has remained the same over the past six pricing reviews, meaning it has not increased in six years despite rising inflation and business costs. Travel reimbursement rates for home visits were cut to just 50 per cent of the previous rate.

Occupational Therapy Australia

Occupational Therapy Australia (OTA) is the professional association and peak representative body for occupational therapists in Australia. There are more than 30,000 registered occupational therapists working across the government, non-government, private and community sectors in Australia. Occupational therapists (OTs) are allied health professionals whose role is to enable their clients to engage in meaningful and productive activities.

Occupational Therapy Australia spokespeople are available for further comment on request.

To arrange an interview, contact Pure Public Relations Kate McMahon - 0403 991 424 | kate@purepublicrelations.com.au.