Recent changes to the NDIS Act have introduced new rules for how participants can spend their funding, emphasizing transparency and preventing plan top-ups due to fund exhaustion—a problem known as intra-plan inflation. This guide breaks down these updates to help participants and providers avoid mistakes and ensure compliance.
Understanding NDIS Supports
To use funding, the service or item must qualify as an ‘NDIS Support,’ as defined in the Act’s transitional rules. Supports are categorised as ‘in’ or ‘out,’ with a detailed table outlining:
- The general support group.
- Descriptions of included supports.
- Whether supports must be stated in a participant’s plan.
How Funding Is Released
Section 33 of the Act introduces three processes for funding release:
- Total Funding Amounts: The overall budget for the plan.
- Funding Components: Categories grouping supports based on nature, cost, and complexity.
- Funding Periods: Timeframes for releasing funds, not exceeding 12 months.
Factors influencing funding periods include spending patterns, fraud risks, and participant management preferences. Participants can appeal funding period decisions within three months of receiving their plan.
Key Provider Considerations
Providers must:
- Deliver supports aligned with participant plans and approved NDIS support descriptions.
- Collaborate with participants to manage funding throughout the plan duration.
- Ensure funding covers emergencies and reporting requirements.
Participants may hesitate to share plan details due to privacy concerns. Providers should foster open communication to address what information participants are comfortable disclosing.
Consequences of Misuse
If participants spend funds on non-NDIS supports or outside their plan:
- The NDIA may adjust funding management methods, shorten funding periods, or raise debts.
- Participants receive a one-year transition period with reduced penalties for small purchases (≤ $1500) and limited warnings.
Replacement Supports
Participants can request funding for non-NDIS supports under strict criteria, limited to household items and certain assistive technologies.
Learn More
For detailed guidelines, visit the NDIA website and explore related resources at teamdsc.com.au on spending compliance and replacement supports.