The current system of fixed maximum prices for NDIS supports at trial sites will end in July 2014.
The NDIA will continue to set an individualised budget for NDIS participants, but will allow increased flexibility for participants to negotiate with providers about the quantity and type of supports they receive.
CEO of the NDIA, David Bowen said that deregulated pricing will increase choice for participants with the NDIA to outline further details of the change in coming months.
The disability sector has welcomed the announcement which was made after they voiced their concerns that some current prices at the trial sites were unsustainable for providers and would erode choice and quality for participants.
It is argued that as the NDIS expands, it will be difficult for a centralised price-setting regime to adequately reflect the diverse circumstances and preferences of participants; hence the value in testing price deregulation during the trial.