The 50% Travel Cap: Navigating the New Geography of Profitability

When the cost of reaching a participant exceeds the revenue recovered for the journey, the community-care model shifts from a service to a liability. Effective 1 July 2025, the NDIA implemented a rule that redefined the geography of profit for therapy businesses: providers can now only claim 50% of the relevant price limit for their travel labor.

For practice owners, this isn't just a minor adjustment - it’s a call to revolutionize your allied health logistics.

Understanding MMM Zones NDIS and Travel Caps

To manage your margins, you must first master the geography. The NDIS uses the Modified Monash Model to determine how much time a provider can bill for travel. Under the MMM zones NDIS framework:

• MMM 1-3 (Metropolitan/Regional): Claims are capped at 30 minutes each way.
• MMM 4-5 (Rural): Claims are capped at 60 minutes each way.

The 2025 update means that while time limits remain, the rate is slashed. For example, a physiotherapist with a standard rate of ~$194/hr can now only claim travel at approximately $97 per hour. When you factor in clinician wages, superannuation, and vehicle wear-and-tear (still claimable at $0.99/km), travel has transitioned from a break-even activity to a direct cost center.

Navigating Therapy Provider Travel Rules in 2026

The therapy provider travel rules are designed to "encourage more efficient scheduling," but for many, they feel like a logistics crisis. To remain profitable, visibility is your only defense.

Businesses that survive this shift are those moving away from "best guess" billing and toward high-precision data. You can no longer afford "loose" scheduling where a clinician drives 40 minutes for a 30-minute claimable window.

Strategies for Allied Health Logistics Optimization

The "new normal" for NDIS travel costs 2025 and beyond requires a proactive approach to scheduling:

1. Zonal Scheduling: Group participants by their MMM zone to minimize "dead air" between appointments.
2. Travel Splits: Ensure travel costs between multiple participants are calculated to the cent and agreed upon in Service Agreements.
3. Data Visibility: Shift the burden of calculation from the clinician to your infrastructure.

Solve the Travel Crisis with Our Clinician Locator

Visibility comes first; without it, you are effectively subsidising the NDIA's travel policy out of your own profit. Our Clinician Locator tool is specifically designed to bridge the gap between where your team is and where they need to be.

• Real-Time Mapping: Identify exactly where clinicians are and match them to participants based on proximity.
• Smart Patterns: Visualize travel patterns to identify "leakage" in your scheduling before it hits your bottom line.
• Logistics Automation: Automatically calculate travel splits and MMM zone compliance, taking the guesswork away from your clinicians.

Secure Your Profitability Today

The math is unforgiving, but your business doesn't have to be. Are you still leaving your travel billing to chance, or do you have the systems in place to ensure sustainability?

Contact us today for a demonstration and see how total data visibility can transform your travel costs into a streamlined operational advantage.

Related References

https://www.ndis.gov.au/news/10827-travel-claiming-rules-gap-fees-and-other-costs