NDIS Legislation changes
In 2024, the Australian Government implemented significant changes to the NDIS to address concerns regarding the scheme’s rapid expansion and to guarantee that support is provided to those most in need. The primary objectives of these reforms are to further refine the criteria for eligibility, implement measures to prevent the misuse of funds, and establish the definition of eligible supports.
The new definition of NDIS Supports
Originally intended to provide support to people with permanent and significant disability, the NDIS has since expanded to encompass a variety of diagnoses, resulting in an exponential expansion of the scheme. To address this, the Bill introduced a revised definition of NDIS supports, which offers more precise guidance on the permissible use of NDIS funding
The objective of this delineation is to remove ambiguity and ensure that funds are allocated appropriately by specifying which services and items the NDIS may fund.
Approved Supports: This category encompasses services that are specifically designed to assist individuals with disabilities, including specialist disability housing, eligible assistance animals, and early intervention services for children.
Excluded Supports: Services that are not directly related to a disability or lack evidence-based support, such as alternative therapies like crystal healing, lifestyle products like vapes, and non-disability-related expenses like concert tickets and holidays.
Replacement Supports: There is also a “substitution” process that allows participants to request alternative support for items that are not typically covered by the NDIS. This works with two different types of supports.
- Standard commercially available household items.
- A smartwatch, tablet, smartphone, or application designed to make something easier to use or communicate.
Changes in NDIS Plans and Funding
New NDIS plans will include total funding amounts, specific funding components, and defined funding periods. Initially, all new plans are set for a 12-month period, with the option of extending the duration later.
When a participant receives a new plan, it will include a budget for all the supports in the plan. The current plans, which show supports line by line, will be modified to reflect this. The change clarifies how much money is available in a participant’s plan and how long it should be used for. However, current plans will be unaffected. In accordance with current funding rules, participants will be unable to spend more than the amount set aside in their plan without having it reevaluated. Furthermore, any funds that are not used will be carried over to future funding periods within a plan. However, unused funds will not be carried over to new plans, and future funding periods cannot be moved forward.
Eligibility Reassessment
To ensure that NDIS resources are allocated to people with significant and permanent disability, the amended NDIS Act allows the NDIA more authority when conducting eligibility reassessment. The information requested must be “reasonably necessary” to determine eligibility.
New Planning Framework
A new planning process will outline how to determine needs, create flexible budgets, and access the NDIS. Automatic access to the NDIS will no longer be granted based solely on specific medical diagnoses, even though eligibility requirements remain unchanged.
To be eligible for the NDIS, individuals must first undergo a needs-based assessment that demonstrates they have a significant functional impairment, which considers how their disability affects their day-to-day life.
The new laws introduce ‘old’ and ‘new’ framework plans as part of the transition to a new process for setting budgets.
Old Framework Plans
Anyone who receives a new NDIS Plan after October 3, 2024 will have an ‘Old Framework Plan’. These will differ from current plans in the following ways:
– Plans will be no longer than 12 months and will include a total funding amount for all supports, not individual line items.
– New plans will include a total budget amount. They specify the total funding available in a plan as well as the duration of the funds.
– Supports can be categorised into one or multiple groups.
– In exceptional circumstances, a request for payment beyond allocated funding may be made.
– A participant will follow an ‘Old Framework Plan’ until rules are developed, and the new planning framework is implemented.
New Framework Plans
New Framework Plans will not be available until after the new planning framework is created. Over time, current participants will transition to
New Framework Plans. New Framework Plans will:
– Include a flexible budget, based on support needs assessments. The NDIS will arrange the assessment.
– Add “funding periods” to indicate how frequently you can access a specific amount of your budget or funding component amounts. In this case, you may receive a longer plan, such as a three-year plan with three funding periods of one year each. Unused funds will be carried over to the next funding period in the same plan.
Impairment notices
As of January 1, 2025, all new participants will receive an impairment notice that lists their specific disability/s or significant impairment.
Participants already on the NDIS will receive an impairment notice when they transition to a new plan. It will have a list of impairments that meet the needs for disability and/or early intervention.
Any supports purchased with your NDIS funds must meet the new definition of NDIS supports and be relevant to the impairment listed on your impairment notice. This change acknowledges that people with disability who have the same diagnosis may have different support needs.
Although the 2024 NDIS reforms are designed to guarantee the program’s sustainability and equity, they present both opportunities and challenges for participants and their families. To successfully navigate this new landscape, proactive planning, resourcefulness, and active engagement with the disability community will be necessary.