Many Australians living with a mental health condition don’t realise they may be eligible for NDIS funding. This page breaks down who qualifies, what supports the NDIS funds and what evidence you’ll need to apply.
What Is NDIS Funding for Mental Health?
The NDIS (National Disability Insurance Scheme) can fund supports for people whose mental health condition has a significant and lasting impact on their daily life. Clinical treatment remains the responsibility of Medicare and the health system. The NDIS focus is on practical supports that help people build skills, manage daily life and participate in the community.
If your mental health condition meets the NDIS definition of a psychosocial disability, you may be eligible to receive an individually funded plan.
Mental Health vs Psychosocial Disability Under the NDIS
These two terms are often used interchangeably, but they mean different things under the NDIS.
A mental health condition refers to a diagnosis like depression, anxiety, schizophrenia or bipolar disorder. It describes the clinical presentation and its causes.
A psychosocial disability is what can arise from a mental health condition. It describes the impact that condition has on a person’s ability to do everyday things, like leaving the house, maintaining relationships, managing a routine or holding down a job.
The NDIS funds based on psychosocial disability, not diagnosis. Having a mental health condition does not automatically mean you have a psychosocial disability under NDIS rules. What matters is whether the condition is permanent and if it substantially affects your functional capacity.
Does the NDIS Support Mental Health Conditions in Children?
Children can be eligible for the NDIS for a psychosocial disability, though it is less common than for adults. The key test remains the same: the condition must be permanent, significant and substantially reduce a child’s functional capacity.
For children under 9, the NDIS early childhood approach can connect families with the right supports even before a formal diagnosis is confirmed. Families are linked with an Early Childhood Partner who can help get support in place quickly.
Some children will move into an individually funded NDIS plan from there, while others may only need short-term support before transitioning to mainstream services.
It’s worth noting that the mental health needs of most children are generally considered the responsibility of the mainstream health system. The NDIS only comes into play where a condition is likely to be permanent and creates a significant functional impairment.
NDIS Mental Health Eligibility Criteria
To access the NDIS for a mental health condition, you need to meet the standard NDIS eligibility criteria. Which are as follows:
- You must be an Australian citizen or permanent resident
- Be under 65 years of age at the time of application
- Have a permanent and significant disability that substantially reduces your functional capacity.
For mental health specifically, you also need to demonstrate that your condition results in substantially reduced capacity in at least one of six functional domains:
- Mobility
- Communication
- Social interaction
- Self-care
- Self-management
- Learning
Learn more: NDIS Eligibility Criteria
Who Is Considered to Have a Psychosocial Disability?
Mental health conditions that may give rise to a psychosocial disability include schizophrenia, bipolar disorder, severe depression, post-traumatic stress disorder (PTSD), obsessive-compulsive disorder (OCD) and agoraphobia.
The diagnosis itself is only part of the picture. The NDIA (National Disability Insurance Agency) will also look at whether the functional impacts are severe and enduring.
What Evidence Is Required for a Psychosocial Disability?
Your evidence needs to come from a qualified treating professional like your GP, a psychiatrist or psychologist. They’ll need to complete the NDIS Evidence of Psychosocial Disability form. This covers:
- Confirmation of your diagnosis
- Your history of hospitalisations related to the condition
- Treatments and medications tried or currently underway
- Whether the condition is likely to be permanent
- How the condition affects your functioning across the six areas listed above
One important thing to note is that fluctuations in your condition don’t disqualify you. It’s normal for a mental health condition to affect you differently from week to week. What matters is that the condition is permanent and, on the whole, substantially limits daily functioning.
Useful supporting evidence includes functional capacity assessments from an occupational therapist, treatment plans and supporting letters from your treating team.
What the NDIS Does Not Fund for Mental Health
The NDIS is not a replacement for the mental health system. It won’t cover:
- Clinical diagnosis or psychiatric assessment
- Ongoing psychological therapy for conditions that are covered by Medicare
- Hospital or inpatient mental health care
- Community mental health programs run by state health services
- Supports that are the responsibility of another service system
If your needs can be met through Medicare, state mental health services or other government programs, the NDIS generally won’t duplicate that funding.
NDIS Mental Health Funding vs Medicare and State Mental Health Services
It helps to understand how these systems sit alongside each other.
| Medicare | NDIS | |
| Purpose | Clinical treatment and therapy | Functional support and daily living |
| Who it’s for | Anyone with a GP Mental Health Treatment Plan | People with a permanent, significant psychosocial disability |
| Session limit | Up to 10 psychology sessions per year | No session limit — support is individualised and ongoing |
| Rebate | Standard rebate per session | Full funding for approved supports |
| Examples | CBT, EMDR, psychiatry | Recovery coaching, support workers, OT, social participation |
The two systems are not mutually exclusive and many people use both. You can’t receive duplicate funding for the same support from both systems, but they’re designed to complement each other rather than compete.
Key differences at a glance:
- Medicare covers clinical treatment, with up to 10 subsidised psychology sessions per year under a GP Mental Health Treatment Plan
- NDIS covers functional support with no session cap — support is individualised and ongoing
- Medicare is available to anyone with a GP referral
- NDIS is for people with a permanent, significant psychosocial disability
NDIS Mental Health Assessments Explained
When applying for the NDIS with a mental health condition, two types of assessments matter.
- The Evidence of Psychosocial Disability form, which is completed by your treating clinician. This is the backbone of your NDIS access request, covering your diagnosis, treatment history, functional impairments and whether your condition is permanent.
- A functional capacity assessment is often completed by an occupational therapist. This provides a detailed picture of how your condition affects your ability to complete everyday tasks. This is especially useful if your treating team’s evidence alone doesn’t fully capture the day-to-day impact of your condition.
What Mental Health Supports Does the NDIS Fund?
If you’re approved, your NDIS plan may include funding across several categories.
Psychosocial Recovery Coaching
A recovery coach helps you set goals, build capacity and navigate both the NDIS and the mental health system. Many recovery coaches have lived experience of mental health challenges themselves, which can make a real difference. Psychosocial recovery coaching is funded under Capacity Building.
Therapeutic Supports
Psychology can be funded through the NDIS when it supports functional outcomes — things like developing strategies to manage daily routines, relationships or community participation. This sits under Capacity Building – Improved Daily Living.
Support Coordination
A Support Coordinator helps you make sense of your NDIS plan and connect with the right providers. For people with a psychosocial disability, this can be particularly valuable given the complexity of navigating multiple service systems at once.
Assistance with Daily Life
Support workers can help with Assistance with Daily Life matters such as personal care, household tasks and maintaining daily routines. These areas are often significantly affected by mental health conditions.
Community Participation
Funding to support social connection and community participation, including group programs and activities.
Assistive Technology and Home Modifications
Where relevant, the NDIS may also fund assistive technology or home modifications to support safety and independence.
Setting NDIS Goals for Mental Health Support
Your NDIS plan is built around your goals, that is, what you want to achieve and what a good life looks like for you. For people with a psychosocial disability, goals are best framed around function and recovery rather than symptom management (which sits with the clinical system).
Common NDIS goals for mental health include:
- Building skills to live more independently at home
- Developing strategies to manage daily routines and keep appointments
- Improving communication and social connections
- Getting back into work or study
- Building confidence to participate in the community
- Better managing budgeting, finances and medication
Coming to your planning meeting with clear, specific goals will help your planner understand what supports are needed and why. The more concrete and functional your goals, the stronger your plan will be.
Examples of NDIS Plans for Mental Health
Everyone’s plan is different, but here are three examples of what NDIS goals and supports for mental health might look like in practice.
A young adult (aged 22) with severe depression and anxiety
Goals: To build the skills to manage daily routines independently; to reconnect with friends and participate in community activities.
This person’s plan includes a psychosocial recovery coach to help them work toward their goals week-to-week, a support worker for a few hours each week to assist with daily tasks when functioning is low, and funding for a social skills and community participation program. Their Support Coordinator helps them keep their plan on track.
A middle-aged person (aged 45) with schizophrenia
Goals: To maintain stable housing and manage day-to-day routines with greater independence; to reduce reliance on crisis services.
Their plan includes a psychosocial recovery coach, assistance with daily life through a regular support worker, and occupational therapy to develop practical strategies for managing executive functioning and self-care. Community participation funding helps them stay connected outside the home.
An older adult (aged 58) with bipolar disorder
Goals: To maintain employment during periods of stability; to build a support network and reduce social isolation.
Their plan includes support coordination, psychology sessions focused on functional strategies (not clinical treatment), and funding for community access programs. Supports are flexible enough to scale up during difficult periods and ease back when things are going well.
How to Apply for NDIS Mental Health Funding
Ready to take the next step? Here’s a simplified overview of how to apply for NDIS funding:
- Talk to your treating team — Let your GP, psychiatrist or psychologist know you’re considering applying. They’ll need to complete the Evidence of Psychosocial Disability form
- Get a functional assessment — Consider seeing an occupational therapist who can document the functional impact of your condition across the six domains
- Submit an access request — Call the NDIA on 1800 800 110 or lodge a request through the myNDIS portal
- Eligibility decision — The NDIA reviews your evidence and determines whether you meet the NDIS eligibility criteria
- Planning meeting — If approved, you’ll work with a planner to set your goals and determine what supports are reasonable and necessary
- Plan activated — Your funding is allocated and you can begin connecting with providers
To give your application the best chance:
- Make sure evidence clearly describes functional impact of your condition, not just the diagnosis
- Include treatment history to demonstrate the condition is enduring
- Don’t be discouraged if fluctuations in your condition are part of your story. The NDIS allows for this
- Come to your planning meeting with your goals clearly in mind
How Care Decisions Can Support You
Finding providers who specialise in mental health and psychosocial disability support, especially when you’ve already got a lot on your plate.
That’s where Care Decisions comes in. We’re a free, independent service that listens to what matters to you and connects you with disability support providers matched to your needs. There’s no cost to participants, no obligation and no pressure—just clear, tailored options so you can feel confident in the choice you make.
NDIS Mental Health FAQs
Does the NDIS cover occupational therapy for mental health?
Yes. Occupational therapy (OT) is one of the most commonly funded supports for people with a psychosocial disability. An OT can work with you on practical strategies for daily living; things like managing routines, executive functioning, self-care and navigating your home environment. OT sits under the Capacity Building – Improved Daily Living category. It’s also often the professional who completes your functional capacity assessment as part of the NDIS application process.
Is NDIS mental health support available for veterans?
Yes, veterans can be eligible for the NDIS if they meet the standard eligibility criteria, including having a permanent and significant psychosocial disability. However, veterans also have access to support through the Department of Veterans’ Affairs (DVA), which can fully fund mental health treatment. Both the DVA and the NDIS can fund supports at the same time, but you can’t receive duplicate funding for the same support from both systems.