How Does NDIS Funding Work?
People with disabilities face multiple challenges every day in terms of social participation, employment, learning, communication, transport, and health and well-being. Nevertheless, NDIS has helped thousands of Australians with disabilities in improving their lives and realising their potential since its rollout.
NDIS provides funded support to people with disabilities who are eligible. The NDIS is jointly funded by the Australian, state and territory governments. People who are eligible to access NDIS must meet the following requirements:
7-65 years old
Is an Australian citizen or a permanent visa holder or special category visa holder
Has a permanent disability that affects the person's ability to perform activities and participate socially and economically
NDIS is not merely for funding supports but rather helping you reach your goals through the supports. The most important component of the NDIS is the goals of the participant. From these goals, the NDIS helps the participant to find the right support aligned to his or her goals.
The Three Budget Supports
Under the NDIS, three different types of budget supports (Core, Capital, and Capacity Building) are available that the participant can choose from depending on his or her goals.
NDIS funding is based on what is reasonable and necessary to achieve your goals. The goals may be related to education, communication, employment, transport, social participation, independence, living arrangements, and health and well-being. Supports that are deemed reasonable and necessary should:
Help them pursue their goals, objectives, and aspirations
Develop their skills and abilities to participate in community engagement
Increase their independence
Increase their social and economic participation
Core Support
The core support budget is the most flexible, which includes assistance for daily living, transport, consumables, and social and community participation.
In this category, the participant can avail assistance for self-care activities during the day and evening, assistance for transport if you struggle or unable to use the public transport because of your disability, purchasing items that are essential for daily use, and supports to enable you to participate in social or recreational activities.
The budget for this category is flexible across the four sub-categories. However, the core support budget cannot be reallocated to other support purposes budget.
Capital Support
In the Capital Support category, it includes assistive technologies, equipment, home, and car modifications, and capital costs. The NDIS may also fund the assessment, delivery, adjustment, maintenance, and set-up costs under this budget support. The funds for this support can only be used for a specific purpose and cannot be used to fund other items other than the items specified in the participant's plan.
Capacity Building Support
Lastly, the Capacity Building category includes supports that help the participant build his or her independence and skills. This category is divided into eight sub-categories:
Choice and control – includes training in planning and management
Daily activity – includes therapy to help build your capacity to participate in the community
Employment – assessment, and counselling for employment
Health and well-being – exercise and therapy
Living arrangements – modification in accommodation to help the participant perform household activities efficiently
Lifelong learning
Relationships – behaviour support and management
Social and community participation – includes public transport training and support
You can choose any individual support within the category but you cannot move the funding from one category to another. Nonetheless, some supports are not included in the NDIS funding. The NDIS cannot fund support if:
The support is the responsibility of another government system or community service
It is not related to the person's disability
It relates to daily living costs that are not related to a participant's support needs; and
It is likely to cause harm or imply a risk to others
For example, the NDIS can help fund the support needed for a child to go to school but the classrooms, tables, and chairs are not part of the funding since it is the responsibility of the government system. Another example is, the NDIS cannot fund groceries but rather the assistance needed for the participant to buy groceries.
Support Coordination, if needed, is included in Capacity Building budget in a fixed amount to help the participant strengthen his or her abilities to coordinate and implement supports in their plans and to participate in the community.
The participant has the choice and control over how support is given and which service providers to use.
How to Manage Your Funding
The participant has the option to choose the way to manage his or her funds – self-managed, plan-managed, and NDIA-managed. Consequently, you can choose a combination of the options, whatever suits your needs.
Self-managed – the participant or a member of the family can manage the funding of the support. The participant can have a nominee to do manage the funding on his behalf. The nominee can be a friend or a carer.
NDIA-Managed – NDIA can help the participant find and communicate with the registered providers. The participant chooses the service providers he wants from the registered providers list on the NDIS website NDIA then pays the providers directly.
Registered plan management provider – the plan management provider lifts the burden from the hands of the participant or his carer in managing the funds. The plan management provider finds and organise providers for the participant, handle documents needed, pay the service providers, and work with service providers in planning and decision-making.
If a person does not meet the criteria, the NDIS may still assist the person with a disability to connect with community or mainstream supports through the new programme providing information, linkages, and referrals.
Furthermore, participants who have long-term needs can avail of individualised support packages. The funding may include:
Transport to help the participant participate in social activities
Workplace to help the participant get or retain an employment
Therapeutic supports including behaviour support
Daily personal activities
Assistance in household tasks to help the participant maintain a comfortable and sanitary home
Home modification and construction
Mobility equipment
Vehicle modification
Assistance from skilled personnel in setting up aids or equipment with training
Every after 12 months, your NDIS plan is reviewed with your coordinator to assess your progress and if the supports improved your living condition and community participation. IF you are not satisfied and happy with the support you receive, you need to discuss this with your coordinator to reevaluate the support.
Read more about Do You Meet NDIS Eligibility Criteria?