Update: NDIS Section 33
Effective Monday, 19 May 2025, significant amendments to Section 33 of the National Disability Insurance Scheme (NDIS) Act 2013 will be implemented for all new NDIS participant plans issued through the PACE system and for participants undergoing plan reassessment. These amendments introduce the concept of funding periods, which will alter the way participants access their allocated NDIS funds throughout the duration of their plan. This post aims to provide a clear and professional understanding of these changes for NDIS participants and registered providers.
Overview of Funding Periods:
Previously, NDIS participants typically had immediate access to their total plan funding upon commencement. With the implementation of the Section 33 amendments, the National Disability Insurance Agency (NDIA) will now allocate a participant's total plan budget into defined funding periods. Consequently, only a portion of the total funding will be accessible at the beginning of each of these predetermined intervals within the plan's timeframe. The NDIA's updated PACE system is now configured to manage these funding periods.
Rationale for the Introduction of Funding Periods:
The NDIA has indicated that these changes are intended to:
Enhance Budget Management: By disbursing funds in stages, the NDIA aims to promote more responsible and sustainable expenditure throughout the plan lifecycle.
Strengthen Financial Oversight: The implementation of funding periods will facilitate more regular monitoring of fund utilisation.
Improve Clarity and Guidance: This structured approach to fund allocation is intended to provide clearer expectations for both participants and registered providers regarding the availability of budgetary resources.
Implications for NDIS Participants:
New Plans and Reassessments: If you receive a new NDIS plan on or after 19 May 2025, or if your current plan undergoes a reassessment (Plan Review) from this date, your plan will incorporate funding periods.
Existing Plans: For participants with existing NDIS plans that are simply extended (rollover) without a comprehensive reassessment, these new funding period regulations will not apply until their next scheduled plan reassessment.
Fund Accessibility: Access to funding will be limited to the allocation for the current funding period. Prudent planning of supports and expenditure within these periods is therefore essential.
Potential for Extended Plan Durations: The introduction of funding periods may facilitate the implementation of longer plan durations (exceeding 12 months) in the future, with funding released incrementally. Current indications suggest default funding periods of three months, with the exception of Home and Living supports, which may be allocated on a monthly basis. Capital funding is anticipated to be available within the initial funding period.
Treatment of Unspent Funds: While unutilised funds within a specific funding period will generally carry over to subsequent funding periods within the same plan, they will not be transferred to a new NDIS plan.
Communication with Providers: Effective communication with support providers regarding your plan's funding periods is crucial to ensure service delivery aligns with the available budget for each period. Claims exceeding the allocated funds within a funding period may be declined in their entirety. Participants may be liable for the cost of services delivered beyond their current funding period allocation.
The Role of Support Coordinators and Plan Managers: Your support coordinator or plan manager will play a vital role in assisting you to understand your funding periods, monitor expenditure within each period, and plan for future support requirements.
Key Information for Registered Providers:
Registered providers must be aware that for new plans commencing on or after 19 May 2025, claims can only be processed up to the amount of funding available within the participant's current funding period. Claims cannot span across multiple funding periods as a single submission.
Conclusion:
The introduction of funding periods under Section 33 of the NDIS Act 2013 represents a significant change in the financial management of NDIS plans. While the objective is to enhance financial accountability and sustainability, it necessitates careful planning and a thorough understanding of the new framework by both participants and registered providers. Participants are strongly encouraged to consult with their support coordinators or plan managers to navigate these new structures effectively.
