New legislative reforms to the National Disability Insurance Scheme (NDIS) took effect on Oct. 3, introducing clearer rules for how participants can use their funding.
The changes include a more defined list of NDIS-approved supports and establish a 12-month transition period to help participants adapt to the revised guidelines.
Under the new regulations, participants must now limit their spending to items or services that are classified as NDIS supports. These definitions are built on existing rules, so the impact on most participants is expected to be limited.
However, the National Disability Insurance Agency (NDIA) is allowing a one-year transition period for participants, plan nominees, and plan managers to adjust.
During this adjustment period, participants who mistakenly spend NDIS funds on non-approved supports under $1,500 will not face immediate penalties for the first or second error. However, repeated mistakes or fraudulent activities will trigger further action, and the purchase of illegal items with NDIS funds will not be excused.
The reforms also include a new substitution option. Participants may apply to replace an approved NDIS support with a non-NDIS support under specific circumstances.
The participant must demonstrate that the substitute provides equal or better outcomes and value for money. These requests must be submitted to the NDIA in advance and will be reviewed on a case-by-case basis. If a substitution request is denied, participants must wait 12 months before reapplying for the same substitution.
The NDIA said it is actively working to communicate the changes to participants and providers.
In addition to updating guidelines, the agency is reaching out through emails and text messages to ensure that participants understand the reforms. It is also providing education and assistance to help participants, plan nominees, and service providers adapt to the changes.
The NDIA plans to offer Easy Read and Auslan versions of the updated guidelines to support participants with varying needs.
The reforms are part of a broader strategy to improve the NDIS’s outcomes and financial sustainability.
According to the NDIA’s Quarterly Report for the period ending June 30, 2024, the scheme is making progress in terms of both participant engagement and cost management. It noted an increase in employment among carers of NDIS participants, greater social participation by individuals in the program, and stronger support for First Nations participants.
As of June 2024, the NDIS supported over 661,000 participants, with 52% of carers and families engaged in paid employment, surpassing the target of 50%.
Additionally, 76% of participants aged 15 and older reported that the NDIS has given them greater control over their lives, slightly exceeding the target of 75%.
