Psychosocial Disability and the NDIS: What You Need to Know

Mental health can be one of the most complex areas of the NDIS — and if you're living with a mental health condition, you may have heard the term “psychosocial disability” and wondered what it means.

Let’s break it down in simple terms and answer some of the most common questions we hear about psychosocial disability and the NDIS.

What is psychosocial disability?

Psychosocial disability is a type of disability that results from a mental health condition. It’s not the same as having a mental illness — not everyone with a mental health diagnosis will experience psychosocial disability.

Under the NDIS, you may be considered to have a psychosocial disability if your mental health condition causes a permanent impairment that significantly affects your ability to do everyday tasks — like maintaining relationships, getting to appointments, or managing daily routines.

Can the NDIS support people with psychosocial disability?

Yes. The NDIS can fund supports that help people with psychosocial disability increase independence, build capacity, and take part in everyday life — socially, economically, and emotionally.

Supports might include things like:

• Help with daily living tasks

• Assistance to attend appointments or community activities

• Psychosocial recovery coaching

• Support to develop routines or manage emotions

• Non-clinical mental health support

What is a psychosocial recovery coach?

If you have a psychosocial disability, your NDIS plan might include a psychosocial recovery coach. This person is a mental health specialist who works with you to build confidence, set goals, and develop strategies that support recovery and independence.

They can also help you coordinate other supports, navigate the NDIS, and work alongside your broader mental health team.

Frequently asked questions

Do I automatically qualify for the NDIS if I have depression or anxiety? Not automatically. The NDIS doesn’t base access on diagnosis alone — it’s about how your condition affects your daily life. You must meet the NDIS eligibility criteria, including showing that your mental health condition causes a permanent and significant impairment.

Do I need an official mental health diagnosis? It's preferred, but not essential. You do need to provide evidence of a mental health condition that impacts your everyday functioning — but the name of the condition isn’t always required.

Can I get help applying for the NDIS? Yes. Your Local Area Coordinator (LAC), psychologist, social worker, or mental health nurse can help you apply. They can also assist with gathering supporting evidence and explaining the process.

What if I have bipolar disorder — am I eligible? Maybe. If your condition causes a psychosocial disability that significantly affects your daily activities, and you meet the other eligibility criteria, you may be able to access the NDIS.

What if I have a history of drug or alcohol use? You're not automatically ineligible. However, you’ll need to show that your psychosocial disability is caused by a mental health condition — not by drug or alcohol dependence alone.

My mental health condition is episodic — can I still qualify? Yes. Many people with psychosocial disability experience fluctuating symptoms, including periods of stability and relapse. You can still be eligible if your overall support needs are ongoing and significant.

What if my needs change while I’m on the NDIS? NDIS plans are flexible. You can adjust your supports at your plan reassessment or request a plan review if your situation changes.

Does the NDIS fund psychology or therapy? Sometimes. The NDIS may fund non-clinical mental health supports that focus on building independence and functional capacity — but not clinical therapy or treatment plans, which fall under the healthcare system.

What’s the difference between NDIS supports and a Mental Health Treatment Plan? A Mental Health Treatment Plan is created by your GP and gives you access to Medicare-rebated sessions with a mental health professional. It’s separate from the NDIS. If you're unsure which supports you need, it’s okay to have both.

Final thoughts

Navigating the NDIS with a mental health condition can feel overwhelming, but you’re not alone. The right supports — including recovery coaching and psychosocial-focused services — can help you build a life that feels more stable, supported, and aligned with your goals.

If you’re unsure where to start, speak with your GP, psychologist, or a support service in your area. And remember: it’s okay to ask questions, ask for help, and take things one step at a time.

Would you like a recovery coach, or help understanding your options under the NDIS? Check out our NDIS Provider Directory here