Your Comprehensive Overview of NDIS Changes
What's changed for you with the NDIS in 2024?
The federal government has implemented a series of reforms to the National Disability Insurance Scheme (NDIS), with significant updates taking effect from Thursday, October 3, 2024.
Key changes included:
- The process for assessing eligibility
- The types of supports that the NDIS will cover
- Management of individual plans
- Allocation and spending of funding
- Information requirements for reassessing eligibility.
According to the government, most participants will not experience any immediate differences until a new planning framework is introduced next year in 2025.
Officials have assured users that the core purpose of the NDIS remains unchanged and that it will continue to fund support services related to disabilities.
Updated Definition of NDIS Supports
Effective 3 October 2024, this change applies to all NDIS participants.
A revised list of NDIS supports is now available, detailing:
- Permitted Expenses: What you can use your NDIS funding for (i.e., what qualifies as an NDIS support).
- Prohibited Expenses: What you cannot spend your NDIS funding on.
(i.e., what is not considered an NDIS support).
The NDIS will fund only those supports directly related to the impairments that qualified you for the scheme. This means your funding must only be used for supports linked to the impairments identified during your initial application.
This list will remain interim while the government collaborates with states and territories to finalize a comprehensive list of NDIS supports.
Most participants will not be affected by these changes, as the majority of items purchased using plan funding align with the new NDIS supports list.
Transition Period
A one-year transition period has been introduced to ensure participants are not penalized for minor errors during the adjustment to the new list.
Replacement Supports
Participants may request substitute supports for items generally not covered by NDIS under certain conditions.
This applies to two types of supports:
- Standard, commercially available household items in specific circumstances.
- Smart devices, such as watches, tablets, smartphones, or apps, used for accessibility or communication purposes.
Further details about the replacement support process will be provided soon.
Previously Approved Supports
Participants can continue to access stated supports in their current plans, as well as those deemed reasonable and necessary by the Administrative Appeals Tribunal, even if these supports are now on the excluded list.
How will people on the NDIS be affected by the new legislation?
Introduction of New Total Budget Amounts
Effective from 3 October 2024
All new NDIS plans issued from this date will display a single total budget amount instead of itemized line items. This total amount represents all funded supports within the plan and is referred to as "total funded supports."
This change simplifies budgeting by showing the total available funding and its duration. It is important to note that spending cannot exceed the allocated funding in the plan.
Additionally, all new plans created after 3 October 2024 will have a standard duration of 12 months.
Extended-duration plans will be reintroduced at a later date.
Plan Management Adjustments
Effective from 3 October 2024
This may affect individuals who self-manage their plans or use a plan manager.
The NDIS may alter the management method of a plan if it determines that the participant, their nominee, or the plan manager is not using the funding in accordance with the plan’s guidelines.
Claims and Payments Framework
Effective from 3 October 2024 and 3 October 2025
A new claims and payments framework will clarify the rules for making NDIS funding claims, including timing and process details.
From 3 October 2025, claims for supports must be submitted within two years of the support being provided. During the initial 12 months (from 3 October 2024), the NDIA will honor claims for supports delivered before the legislation took effect.
Example:
- Josh submits an invoice on 1 October 2025 for a service provided 2.5 years ago that is classified as "not an NDIS support." The NDIA will accept this claim.
- If Josh submits the same invoice on or after 3 October 2025, the claim will be rejected because the service was delivered more than two years prior.
Important: Regardless of when an invoice is submitted, the updated legislation regarding excluded services applies to all claims for services delivered on or after 3 October 2024.
We will continue to provide updates as further details become available.
Requests for Information and Plan Revocation
Effective from 3 October 2024
The NDIA may request specific information or require actions, such as assessments, during a review of your participant status.
Failure to comply with such requests within a reasonable timeframe may result in the revocation of your access to the NDIS.
New Planning Framework
Timing for implementation is yet to be determined.
A new planning process is being introduced to outline how individuals can access the NDIS, how their needs will be evaluated, and how flexible budgets will be designed. Due to legislative changes, the way plans are developed will undergo significant transformation.
The new laws will phase in two types of plans, referred to as ‘Previous Framework Plans’ and ‘New Framework Plans,’ as part of the transition to a revised budgeting approach.
Previous Framework Plans
Effective from 3 October 2024.
Starting 3 October, any participant receiving a new NDIS Plan will be provided with a ‘Previous Framework Plan.’
Key differences from current plans include:
- Plans will have a maximum duration of 12 months.
- Funding will be presented as a total amount rather than itemized line-by-line.
- New plans will clearly outline the total funding available and its duration.
- Supports may be grouped into specific categories.
- In exceptional cases, participants may request payments beyond their allocated funding.
Participants will remain on a ‘Previous Framework Plan’ until the new planning framework is finalized and implemented.
New Framework Plans
Expected within 12–18 months.
The New Framework Plans will not be available until the updated planning framework is fully established. However, some details are already known:
- All NDIS participants will eventually transition to a New Framework Plan.
- Plans will feature a flexible budget, determined by a support needs assessment conducted by the NDIS.
- Budgets will include ‘funding periods,’ specifying when portions of the total budget or component funding can be accessed. For example, a three-year plan might include three one-year funding periods, with unused funds rolling over between periods within the same plan.
- Additional funding will only be allocated in specific circumstances, such as emergencies or crises.
- This transition represents a significant shift in the NDIS planning approach, aimed at enhancing clarity, flexibility, and fairness.
What is an Impairment Notice?
From 1 January 2025
A ‘disability record’ is a new kind of document provided by the NDIA that confirms you have a lasting disability or notable impairment. It will outline impairment(s) that satisfy the disability and/or early intervention criteria.
From 1 January 2025, all new NDIS participants will receive a disability record. Individuals already enrolled in the NDIS will get a disability record when they transition to a revised plan.
The record will contain information about whether you meet the disability or early intervention pathways and the categories of impairment identified. Any services funded through your NDIS plan must align with the updated definition of NDIS supports and correspond to the impairment specified in your disability record.
This update acknowledges that individuals with the same ‘diagnoses’ may have distinct support needs.
- Impairment Categories
- The NDIS impairment categories include:
- Intellectual
- Cognitive
- Neurological
- Sensory
- Physical
- Impairments related to a psychosocial disability
One or more categories may appear on your disability record.
Impairments and Your NDIS Plan
Impairments will be directly tied to funding decisions. Your planner will review the disability record before determining your NDIS funding.
From 3 October 2024, for individuals already on the NDIS, planners will be legally required to refer to the person’s impairment when making plan decisions. Disability advocates have raised concerns about this change, including doubts about whether the NDIS has accurate and current information on impairments for existing participants.
Amending a Disability Record
If your disability record contains errors, you can request a correction, such as adding other impairments. The process for this is still under development. You will need to provide supporting evidence and documentation.
