The NDIA has announced that from the week of 19 May, NDIS plans will include funding periods which will set additional timeframes in plans that will dictate when participants can receive their plan funds.

What is changing?

Following last year’s amendments to the NDIS Act, the NDIA now has the power under section 33 to make further rules about participants’ plans and budgets, including total funding periods, funding component amounts and funding periods.

The NDIA has now started to introduce ‘funding periods’ to participant plans. A funding period is the amount of time that part of a participant’s funding is available. Funding periods don’t change the total amount of funding in a participant’s plan, only when and in what increments the funding becomes available.

This effectively means that total plan funding is carved up into smaller funding periods.

NDIA has said that funding periods will generally be 3 months, and their rationale for this is that “this gives flexibility to participants but also help participants manage budgets”.

In practice, a participant with a -12-month plan may have their plan divided up into four -three- month funding periods. At the start of each funding period, an amount of funding will be released. For example, a 12 month plan with $16,000 for capacity building supports would see $4,000 released in every -three-month funding period.

How will funding periods be applied to plans?

Funding periods may be applied to the total funding amount (whole plan) or specific funding components. NDIA has said that even smaller funding periods may apply for some regular high costs support like Supported Independent Living (SIL), which may have monthly funding periods to align with service delivery.

Funding periods may not apply for some high cost, one off items like high-cost AT or capital costs which may be made available at the start of the plan.

Will the total amount of funding in a participant’s plan change?

No, funding periods don't affect a participant's total budget, only when funding will be made available across the duration of their plan.

Can unused funding be rolled over to the next funding period?

At the end of each funding period, any unspent funds will rollover into the next funding period in the same plan. This means the unused funding will be added to the new funding period. However, funds will only rollover during the same plan.

At the end of each funding period, any unspent funds will rollover into the next funding period in the same plan. This means the unused funding will be added to the new funding period. However, funds will only rollover during the same plan.

When will the changes start?

The changes started this week and will be applied to new and reassessed participant plans.

NDIA has said the changes ‘will be rolled out gradually’.

Participants will only see the change in new or reassessed plans following a discussion with a NDIA planner to understand their circumstances.

Why is it changing?

Previously, participants have had access to all their funding at the start of their plan. Participants were required to make funding last the full duration of their plan.

NDIA has argued that the changes will assist participants to reduce the risk of running out of funds before the end of the current plan period, and enable them to monitor for fraud and mismanagement for those who are not agency managed.

They have said: “This approach makes sure funds are available at regular intervals and supports consistent use of funding over the length of the plan.”

The NDIA’s announcement states that: “The NDIA sets the length and amount of funding periods in line with NDIS laws, taking into account a participant’s individual needs and circumstances. This includes things like:

• preferences
• any risks with overspending
• any risks of harm, fraud, or financial exploitation.“

What are the implications for occupational therapy?

We expect that the funding periods will be applied to capacity building supports and this will see OT participants only being able to access a part of their total plan funds in any one funding period to pay for OT services.

Some implications of this may include a reduction in participant choice and flexibility. This may also create barriers to participants being able to access more intensive periods of therapy for one off assessments, intensive blocks of interventions, or if combined therapies are indicated, when amounts available in a specific funding period may not be enough to cover the cost.

There may be issues with interruptions to therapy dosage due to funds being exceeded in a funding period.

There may also be issues where therapists provide services that exceed the costs of the funding period, before the funding period expires.

In light of the changes, we recommend that members review their participants’ service agreements to ensure that they enable provision of services across a plan and specific funding periods, ensuring timely payments for service provision. It is recommended that members monitor the impact of funding periods on participants’ available funding to ensure that you and your participants aren’t caught out.

As the changes roll out, we want to hear from members about issues you encounter in the rollout, to allow us to identify systemic issues and escalate these to NDIA and Government. Email us at policy@otaus.com.au.

Where can I find out more?

Read more about the changes on the NDIA’s website. More detailed information can be found at this page.

You can also register for an online NDIA information session