As of October 3, 2024, significant legislative changes to the National Disability Insurance Scheme (NDIS) have come into effect. These amendments aim to improve clarity, flexibility, and sustainability within the NDIS framework, ensuring that it better serves participants and meets the evolving needs of the disability community. This article outlines the key changes and their implications for current and future NDIS participants.
Key Legislative Changes
Definition of NDIS Supports
A new definition of “NDIS supports” has been introduced under Section 10 of the legislation. This clarifies what funding can and cannot be used for under the scheme, helping participants better understand their funding entitlements. It aims to ensure funding specifically aligns with the participant’s disability-related needs. A transitional legislative instrument has been put in place to provide a list of what is and isn’t covered, which will evolve as new NDIS rules are developed in consultation with the disability community.
The transitional list of supports is available here: Draft NDIS Support Lists.
Planning Framework and Funding Periods
Under Section 33, a new planning framework introduces funding periods, ensuring that plans have set timeframes for accessing funds. Initially, all new plans will be limited to 12 months or less, with longer-term plans potentially becoming available in the future. This change will help participants manage and distribute their funding more effectively by breaking it into equal or different time periods. Over time, a new needs-based assessment method will be implemented to help structure participant budgets, with plans set to transition to this framework by mid-2025. Until then, new and existing plans will be referred to as “Old Framework” plans.
For more details on this planning framework, see NDIS Summary of Legislation Changes.
Debt Recovery Procedures
Changes to debt recovery processes mean that if participants claim something not covered under their plan, they may be required to repay the amount. However, during the first 12 months of these changes, there will be flexibility around debts of less than $1,500. Participants will not be asked to repay these smaller debts unless they have received two warnings. This aims to reduce financial pressure on participants while they adapt to the new rules.
For more information on debt recovery procedures, refer to the NDIS Operational Guidelines on Debt Recovery.
Replacement Supports
A new substitution or replacement rule allows participants to request the replacement of an NDIS support with a non-NDIS support, if the new support provides the same or better outcomes at a lower cost. An example provided during the information session was the replacement of a more expensive support worker with a smartwatch, if it serves the participant’s needs effectively. Participants can submit requests for replacement supports using forms available on the NDIS website.
More details about this substitution rule can be found in the NDIS Bill Changes Overview.
Implications for Participants
These legislative changes aim to improve the participant experience and ensure long-term financial sustainability for the NDIS. However, there are concerns among advocacy groups and the wider disability community about potential impacts on participant access to essential supports. Critics argue stricter eligibility requirements and new access rules may create additional barriers for people with disabilities, particularly in areas such as education and employment.
The Minister for the NDIS, Bill Shorten, has emphasised that these reforms are essential to securing the scheme’s future, given the projected costs exceeding $50 billion annually by 2025-26. The government will continue to engage with the disability community to ensure further amendments address these concerns.
What’s Next?
The changes introduced today are the first step in a series of amendments that will be rolled out over the next 12 months and beyond. More updates will be shared as the new rules and frameworks are finalised. The NDIS will continue to deliver information sessions and provide regular updates via its website and newsletters.
These changes represent a significant shift in how supports are defined and delivered under the NDIS, aiming for a more streamlined, participant-centred approach while addressing financial sustainability concerns within the scheme.
Where to Go for Further Information
To learn more about these changes, please visit the NDIS website. If you require assistance in your preferred language, you can access a free-of-charge translator or interpreter by calling 131 450.
For easy-read versions of the changes, please click below:
Easy read: NDIS support and budget changes (DOCX)
Easy read: NDIS Support and Budget Changes (PDF)
For more detailed information on these changes and ongoing updates regarding the NDIS legislation, please refer to resources from the National Disability Insurance Agency and the Department of Social Services.
These changes represent a significant shift in how supports are defined and delivered under the NDIS, aiming for a more streamlined, participant-centred approach while addressing financial sustainability concerns within the Scheme.
Share this