The government has introduced new rules for managing NDIS funding, which affect how participants can self-manage their plans or use a plan manager. These changes give the NDIA more power to restrict self-management or the use of a plan manager if it believes there’s a risk to the participant or if funds might not be used properly. For example, participants may not be allowed to self-manage if they have been convicted of serious offenses like fraud, are insolvent, or if the NDIA thinks self-management poses an unreasonable risk. The NDIA will also look at whether the person has a history of misusing funds, failing to follow their plan, or struggling with financial management.
When deciding if self-management is too risky, the NDIA will consider factors like whether risks can be managed with supports in the participant’s plan, such as help from family or financial training. They’ll also look at past behavior, like whether the participant has been exploited financially or has had trouble managing money. If a court has ordered someone else to manage the participant’s finances, that will also influence the decision. Similarly, the NDIA can restrict the use of a plan manager if it believes there’s a risk to the participant or if spending rules might not be followed.
There are some things the NDIA can’t consider, like the nature of the participant’s impairments (though the impact of impairments is allowed), the amount of funding in the plan, or past underspending. All decisions about plan management can be reviewed, giving participants a chance to challenge outcomes if they disagree.
These changes aim to balance flexibility for participants with safeguards to ensure funds are used appropriately. However, some parts remain unclear, like what exactly counts as an “unreasonable risk.” Proposed updates to the rules are still being negotiated with states and territories, so more changes could come. For now, participants will need to wait and see how these rules develop in the coming months.
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