What You Need To Know About the Upcoming NDIS Changes

Understanding the NDIS Amendment Bill

The NDIS Amendment Bill, also known as the "Getting the NDIS Back on Track" Bill, was passed in August 2024 as part of the government’s ongoing effort to enhance the scheme.

The government is updating NDIS legislation to align with recommendations from the 2023 National Disability Insurance Scheme Review. Here’s what you need to know about the upcoming adjustments:

Needs-Based Budgets

Budgets will now be determined based on individual needs rather than a specific diagnosis. A new planning framework will establish NDIS plans with a reasonable and necessary budget instead of listing supports line-by-line. This budget will be informed by a needs assessment, though the exact process for this assessment is still under development. While the assessment considers all disability needs, NDIS funding will only cover impairments that meet certain criteria. This change allows participants more flexibility in using their plan without needing to apply for approval for variations. Existing participants will continue under the current framework until the new one is introduced.

Flexible Funding

The introduction of flexible funding will give participants more control over how they use their NDIS budgets. Rather than having line-by-line items dictating specific supports, participants will have the freedom to allocate funds as needed, provided they meet the NDIS criteria. Flexible funding is set to become the default in NDIS plans, though the Scheme may impose restrictions in cases where participants have a history of overspending.

Future guidelines will clarify how budgets are determined and when supports can be designated as non-flexible in a plan.

New Definition of NDIS Support

There’s also a new draft definition of what constitutes NDIS support, intended to clarify which supports the NDIS will fund. This aims to reduce confusion and ensure that participants receive appropriate and necessary support through the Scheme.

Funding Periods and Top-Up Controls

NDIS plans will now feature funding periods, with allocations spread over up to 12 months. If funds are not spent within one period, they can roll over to the next, provided it’s under the same plan. Additionally, the Scheme will impose tighter controls on funding top-ups for participants who exceed their budgets, with these changes expected to take effect from September 2024.

Claiming Framework

A new claiming framework will require claims to be made within two years of the support being provided, similar to the current Medicare rules. This rule applies immediately, though there is a 12-month grace period in which no time limit on claims applies.

Early Intervention and Foundational Supports

The NDIS is developing a new early intervention pathway for children, focusing on needs-based assessments to determine eligibility. Additionally, a new foundational supports model is being created to provide non-NDIS home and community supports. These services will gradually roll out, starting in mid-2025.

What You Need to Do

For now, continue using your NDIS plan as usual. The new laws will take effect 28 days after formal approval (expected to be mid to late September 2024). Until then, all processes and supports will remain the same. Participants and providers should continue to follow current guidelines while preparing for the upcoming changes.

These changes represent a significant evolution in how the NDIS operates. Staying informed and understanding these adjustments will help you make the most of your NDIS plan moving forward.