The volume of information is extensive and will take a while to digest and understand the true implications. After our first read, we’ve summarised the key points that Plan Managers need to know. The amendments in this Bill lay the foundations for implementing parts of the NDIS Review recommendations:
- Recommendation 3: Provide a fairer and more consistent Participant pathway
- Recommendation 5: Provide better support for people with disability to make decisions about their lives
- Recommendation 6: Create a continuum of support for children under the age of 9 and their families
- Recommendation 7: Introduce a new approach to NDIS supports for psychosocial disability, focused on personal recovery, and develop mental health reforms to better support people with severe mental illness
- Recommendation 17: Develop and deliver a risk-proportionate model for the visibility and regulation of all providers and workers, and strengthen the regulatory response to long-standing and emerging quality and safeguards issues
What’s Included?
As a summary, the key reforms in the Bill include:
- defining what is included as ‘NDIS Supports’
- taking a whole of person approach to Participant support needs
- reforming Participant pathways onto the NDIS and working towards a unified system of support for people with disability.
- improving quality and safeguards commission powers
Reasonable and Necessary supports will be transitioned to ‘NDIS supports’ and specific criteria listed to define them. You can view those here on page 3. More importantly, the proposed legislation sets out what is NOT funded.
“This new definition assists participants by providing clear guidance on what supports they can access through the NDIS. For example, things such as holidays, groceries, payment of utility bills, online gambling, perfume, cosmetics, standard household appliances and whitegoods will not qualify as NDIS supports”
The Bill will support the effective transition of Participants to a new budget setting framework. We now see reference to New Framework Plans, and Old Framework Plans.
New framework plans will include a flexible budget and/or budget for stated supports (including a total funding amount for each) and will be developed following a needs assessment. There are also specific allowances to guide the agency in requesting information.
Old framework plans will specify a total funding amount and also a specified amount for individual supports or classes of support. Funding in a plan must only be spent on NDIS support for that Participant. While the NDIA is currently including funding amounts in plans on an administrative basis, this change will provide a stronger legal footing and a control mechanism where participants overspend.
Implementation Timeline
The legislative changes commenced on 3 October 2024. Implementation occurs in phases, with some amendments applying immediately while others roll out progressively as the NDIA develops and implements supporting systems and processes.
Plan Manager Compliance & Spending Requirements
The Bill also updates circumstances in which the NDIA will change the plan management arrangements for a participant, particularly in circumstances where:
- the Participant might be likely to suffer physical, mental or financial harm, or
- where the requirement to spend money in accordance with the Participant’s plan has not been met.
Plan Managers play an important role in monitoring plan expenditure and maintaining accurate records. Ongoing oversight and early identification of significant variations can support transparent plan use and informed discussions with Participants and the NDIA where needed.
Quality & Safeguards Commission Powers
Lastly, the Bill provides for the Quality and Safeguards Commission to be able to scale up its efforts around compliance, including restricting the employment of banned people.
“Such a condition would prevent banned persons from being able to move from the NDIS provider sector of the NDIS market system to the NDIS auditing sector and continue to engage in activities that had them banned from the provider market.”
These safeguards strengthen regulatory enforcement. Plan Managers remain subject to existing worker screening and compliance requirements overseen by the NDIS Quality and Safeguards Commission.
Where can you find more information?
The Explanatory Memorandum sets out the changes quite clearly, including example situations and outcomes. It’s long, but well worth an hour or two of your time.
The Department of Social Services have also produced a few shorter documents, including a fact sheet, a ‘bill at a glance’ document, and easy read and Auslan options. They also have some Frequently Asked Questions. You can find all of those documents here.
How can you stay informed?
As things develop in the coming weeks and months, we’ll be updating our Plan Managers through our Plan Managers Advocacy Group. It’s free for ALL Plan Managers, and provides you with plenty of options to have your say in the future of plan management.
