18/05/2025
Starting Monday, May 19, 2025, significant changes to Section 33 of the NDIS Act will impact how funding is managed for new participants and those undergoing plan reviews. These amendments will introduce structured funding periods, components, and total funding amounts to enhance transparency and control over NDIS budgets.
Key Changes to Section 33
• Funding Periods: Funds will be allocated in fixed periods, typically 3 months, rather than providing the entire plan amount upfront.
• Funding Components: Supports will be categorized into components based on nature, cost, and complexity, allowing for more precise budgeting.
• Total Funding Amounts: The total available funding will be clearly defined, helping participants and providers understand the financial scope of the plan.
Implications for Providers
• Overspending Risks: If a participant exhausts their allocated funds within a funding period, any additional services or invoices incurred beyond that period will not be paid, even if funds are available in subsequent periods.
• Roll-Over of Unspent Funds: Unused funds within a period can be transferred to the next period, offering some flexibility in fund management.
• Audit Triggers: Frequent overspending or rapid depletion of funds may prompt audits by the NDIA, requiring providers to justify spending patterns.
Recommendations for Providers
• Implement Budget Tracking: Utilize tools to monitor fund usage in real-time, ensuring that spending aligns with allocated periods.
• Regular Communication: Maintain open lines with plan managers and participants to anticipate and address potential funding issues promptly.
• Educate Participants: Inform participants about the new funding structure and the importance of adhering to budget allocations to avoid service disruptions.
These changes aim to enhance the sustainability and effectiveness of the NDIS, but they require proactive management and collaboration between participants, providers, and plan managers.
