What NDIS participants need to know ahead of major reforms
What NDIS participants need to know ahead of major reforms | Insurance Business Australia
Life & Health
What NDIS participants need to know ahead of major reforms
Funding and support rules to be amended
Life & Health
By
Roxanne Libatique
Parliament has approved a series of reforms to the National Disability Insurance Scheme (NDIS), with key changes to be introduced from Oct. 3.
These adjustments will bring new rules for participants and how their funding can be utilised, according to the National Disability Insurance Agency (NDIA).
NDIA offers assurances amid NDIS changes
In a message addressing the upcoming changes, NDIA CEO Rebecca Falkingham acknowledged potential concerns from participants but emphasised that the scheme’s core function remains unchanged.
“I want to reassure you that for most people, not much will change about the way you experience the NDIS now,” she said, adding that most participants will not see immediate impacts from the legislative changes.
The NDIA plans to provide continuous updates and assistance throughout the transition, with a focus on keeping participants informed before any changes take effect.
Practical shifts are expected to be more noticeable as the scheme gradually adopts the new planning framework later in 2024.
Revised rules for NDIS supports
Starting on Oct. 3, the NDIA will implement a new definition of NDIS supports, clarifying what types of purchases can be made with NDIS funding.
The updated rules will specify both approved and non-approved uses of funds, impacting all participants. These guidelines are currently under review, with the NDIA consulting the community to finalise the definition.
The agency plans to notify participants of the finalised rules before they are enforced. Under certain conditions, participants may still request to use their funding for supports that fall outside the defined categories, and further details on these exceptions will be provided soon.
Should participants accidentally use funds for ineligible items, the NDIA has stated it will assist in resolving these issues and helping participants adapt to the new framework.
Transition to budget-based plans
For plans reviewed after the Oct. 3 changes, participants will notice a shift from detailed line-item allocations to an overall budget figure. This will show the total funding available for the duration of the plan, providing participants with a clearer picture of their financial resources.
Initially, all new plans will be issued for a 12-month period, though the NDIA has signalled that longer-term plans may become more common later on.
Participants are advised to continue managing their current plans as usual until the reforms are officially in place next year.
The report pointed to improved employment rates among carers, increased social participation for participants, and expanded support for First Nations Australians.
The report noted that the NDIS is now supporting more than 661,000 participants, with 52% of families and carers engaged in paid employment – a figure that exceeds the 50% target set for the 2023-24 period.
Additionally, 76% of participants aged 15 and older reported that the NDIS had helped them increase their control and choices, slightly surpassing the 75% goal.
Government funding and fiscal oversight
The NDIS reforms are backed by significant funding allocations in the federal budget, with over $720 million set aside in 2023-24 and an additional $468.7 million in 2024-25. These investments are aimed at improving participant services and ensuring the scheme’s long-term sustainability.
The report also highlighted that the scheme’s expenses came in $600 million under the forecasted budget for the financial year ending in June 2024. In addition, plan inflation rates have been stabilising since September 2022, indicating ongoing efforts to contain rising costs.
To address concerns regarding fund misuse, the NDIA and the NDIS Quality and Safeguards Commission have reminded plan managers and coordinators of their responsibility to ensure funds are used appropriately. This follows an increased focus on oversight from the federal government.
Efforts to boost participant engagement
The number of participants relying on supported independent living (SIL) services stabilised at 34,850 by the end of June.
In response to delays in service delivery, the NDIA has added over 400 staff members to frontline service teams and expanded the National Contact Centre by 160 positions. This expansion is intended to manage the rising demand for plan changes, which has increased since late 2023.
During the quarter from April to June, the NDIA processed 6,274 access requests, reflecting a 13% increase from the previous quarter. Additionally, 14,341 new plans were approved – an 81% jump – while plan reassessments rose by 38%, with 56,002 completed during the same period.
These adjustments are part of the agency’s broader strategy to improve both service delivery and participant outcomes as it moves forward with the implementation of the NDIS reforms.
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