NDIS Reasonable and Necessary Criteria: Everything You Need to Know

If you are using the NDIS, you have almost certainly heard the phrase reasonable and necessary. It is one of the most important concepts in the entire scheme and also one of the most misunderstood.

Simply put, the NDIS reasonable and necessary criteria are the rules the NDIA uses to decide what supports can and cannot be funded in your plan.

In late 2024, new legislation and clearer funding rules were introduced. These changes tightened what the NDIS will approve and made it even more important for participants and families to understand how decisions are made.

This guide explains what reasonable and necessary really means, how the criteria are applied, and how to use your funding confidently and correctly.

The Two Types of Supports in an NDIS Plan

An NDIS plan can include two different types of supports.

General supports

These are supports the NDIS provides directly, not through your funding. They include help from:

• Local Area Coordinators (LACs)

• Early Childhood Coordinators

• Connections to mainstream or community services

You do not pay for these supports from your NDIS budget.

Reasonable and necessary supports

These are the funded supports included in your NDIS plan. They must meet the legal reasonable and necessary criteria and be directly related to your disability support needs.

This is the funding most people think of when they talk about using their NDIS plan.

What Are Reasonable and Necessary Supports?

Reasonable and necessary supports are the services and items the NDIS agrees to fund for you.

They may support areas such as:

• Education

• Employment

• Social participation

• Independence

• Living arrangements

• Health and wellbeing

To be funded, supports must be clearly linked to your disability and help you:

• Work towards your goals

• Increase independence

• Participate socially or economically

The NDIS looks at your whole situation when making decisions. This includes what you can do independently and what informal supports you already have, such as family, carers, and community networks. NDIS funding is designed to complement these supports, not replace them.

The 7 NDIS Reasonable and Necessary Criteria

Every support paid for with NDIS funding must meet all seven of the reasonable and necessary criteria.

If even one is not met, the support may be declined.

1. Is the support related to your disability?

There must be a clear link between the support and your disability.

The NDIS will not fund everyday living costs or items that everyone needs, even if they are helpful.

2. Does it help you pursue your goals?

The NDIS considers whether the support helps reduce barriers caused by your disability.

Not every support needs to link to a specific written goal, but it must support your overall progress.

Including a goal in your plan does not automatically guarantee funding.

3. Does it support social and economic participation?

The support should help you take part in everyday life.

Social participation includes things like spending time with others, accessing the community, and doing activities you enjoy.

Economic participation includes working, studying, or volunteering.

The NDIS may also fund supports that reduce barriers preventing participation.

4. Is it value for money?

The NDIS compares the cost of the support to other options.

They consider whether:

• There are more cost effective alternatives

• Funding the support now could reduce future costs

• Renting equipment would be better than buying

• Pricing aligns with NDIS pricing rules

5. Is it effective and beneficial?

Effective means the support helps maintain or improve your current level of functioning.

Beneficial means it helps you do things you otherwise could not do.

The NDIS looks for evidence that the support aligns with good practice and has been shown to help people with similar needs.

6. Does it complement informal and mainstream supports?

The NDIS considers what it is reasonable to expect family, carers, and the community to provide.

For example, parents are generally expected to provide things like basic supervision or transport for children.

NDIS supports should add to existing supports, not replace them entirely.

7. Is it an NDIS support?

The support must be recognised under the NDIS rules as something that can be funded.

There are now two official lists:

• Supports that are NDIS supports

• Supports that are not NDIS supports

There is one exception called replacement supports, where an alternative item can replace an existing funded support if it meets strict conditions.

Why the NDIS Does Not Always Fund What Professionals Recommend

This is a big change that has caught many families off guard.

In the past, a recommendation from a therapist or doctor was often enough to justify funding. That is no longer the case.

The NDIS has clarified that while a professional may recommend something, it does not automatically meet the reasonable and necessary criteria for that individual.

There may be a more cost effective option or a different support that achieves the same outcome.

This does not mean the recommendation is wrong. It means the NDIS must apply the legislation consistently across all participants.

You can read the NDIA’s official guidance on reasonable and necessary supports on the NDIS website here: Reasonable and necessary supports | NDIS

How to Use the Reasonable and Necessary Criteria in Real Life

Before using your NDIS funding, it helps to ask yourself:

• Is this support clearly related to my disability?

• Does it help me work towards my goals?

• Is it allowed under the current NDIS rules?

• Is it something the NDIS is responsible for funding?

If you are unsure, it is always best to talk to your:

• Plan Manager

• Support Coordinator

• Local Area Coordinator

Final Thoughts

The NDIS reasonable and necessary criteria exist to make sure plans are fair, targeted, and focused on what genuinely supports participants.

Understanding how the criteria work puts you in a much stronger position. You can use your funding with confidence, ask better questions, and avoid unexpected issues down the track.

The NDIS is complex, but you are not expected to navigate it alone. Clear information and the right support team make all the difference.