NDIS for Mental Health and Psychosocial Disability

What You Need to Know

Mental health challenges can impact every aspect of a person’s life—from relationships and employment to self-care and community involvement. For people living with long-term, severe mental health conditions, the National Disability Insurance Scheme (NDIS) may provide funding and support. However, the process of accessing NDIS services for psychosocial disability is often misunderstood or overlooked, leading many eligible individuals to miss out.

In this article, we explain what psychosocial disability is, how the NDIS can help, and what steps to take if you or someone you support is living with a mental health condition that significantly impacts daily life.

What Is a Psychosocial Disability?

A psychosocial disability is a term used by the NDIS to describe a disability that arises from a mental health condition. Not everyone with a mental illness will have a psychosocial disability, but for those who do, the impact is usually ongoing and significantly limits everyday functioning.

Conditions that may be associated with psychosocial disability include:

• Schizophrenia
• Bipolar disorder
• Severe depression
• Anxiety disorders
• PTSD

To be considered eligible for the NDIS, the person’s mental health condition must be permanent and have a substantial impact on their ability to carry out activities such as managing daily tasks, engaging with others, or living independently.

What Supports Can the NDIS Provide?

If eligible, a person with a psychosocial disability can access a wide range of NDIS-funded supports. These may include:

• Support workers to assist with daily living, personal care, and social participation
• Capacity building programs to develop life skills, manage emotions, or build routines
• Support coordination to help navigate services and get the most from the plan
• Psychological therapies or allied health supports (in some cases, when not covered by Medicare)
• Access to supported accommodation or short-term respite if needed

For example, someone with psychosocial disability who struggles to maintain consistent routines may benefit from our Assistance with Daily Personal Activities or Community Access and Participation services.

Challenges and Misconceptions

One of the most significant barriers for people with mental health challenges is the lack of awareness that NDIS funding may be available. The eligibility criteria are often seen as focused on physical or intellectual disability, leading many people and their families to assume they won’t qualify.

However, the NDIS does support psychosocial disability, and the scheme continues to develop more specific pathways for this group. Applicants must provide medical evidence (typically from a psychiatrist or general practitioner) demonstrating that their condition is permanent and causes significant functional impairment. This may include details about difficulties with:

• Planning and decision-making
• Social and community engagement
• Managing time or finances
• Daily self-care and wellbeing

If this sounds like your experience or that of a loved one, we encourage you to discuss with your healthcare provider or support worker whether NDIS access is possible.

Getting Started: Applying for the NDIS with a Psychosocial Disability

Applying for NDIS support starts with completing an Access Request Form and providing supporting documentation. For psychosocial disability, it’s important to:

1. Clearly describe how your mental health condition impacts your ability to function daily
2. Provide evidence that the condition is likely to be permanent (e.g., treatment history, medical reports)
3. Highlight any support needs that are ongoing and not adequately addressed through other services

Once access is granted, the planning process will involve identifying goals and determining which supports can help achieve them.

For an overview of the types of support that may be included, see our article: NDIS Support Services Explained: What You Might Be Missing.

Final Thoughts

The NDIS has the potential to create real and lasting change for people living with severe mental health conditions. Through appropriate supports, individuals can build confidence, increase independence, and improve overall well-being. Yet for too many, psychosocial disability remains an unseen or misunderstood pathway into the scheme.

If a long-term mental health condition has impacted you or someone you care for and is struggling with daily life, don’t assume you’re ineligible. At My Care Living, we’re committed to helping you understand your options, prepare the correct documentation, and connect with support that makes a difference.

You don’t have to navigate it alone—reach out to our team today for personalised guidance on accessing the NDIS with a psychosocial disability.