There are three main options to manage NDIS funds, and you will decide, with the planner, which option would suit you best, or it may be a combination.
It is important to note that no matter which Management Option you chose, it doesn’t change that your plan is Self Directed, and you will still choose the service providers yourself.
The three main options to manage NDIS funds are:
- Self Management – the individual or a plan ‘nominee’
- Plan Management -a registered plan management provider or
- Agency Managed – The National Disability Insurance Agency
You can chose to leave the funds for your Plan with the NDIA. This is Agency Management.
- All administrative functions are taken care of by the Agency
- You are not required to pay invoices, or claim reimbursement or report against your plan, this is all done by NDIA for you.
- You must set up a Service Agreement for each provider you choose
Providers: You are only able to select NDIS Registered Providers
Cost: There is no cost if you choose Agency Management
If your choice is to use a Plan Manager, you MUST request this at the time of developing your Plan, as the NDIA will allocate funds to your plan to cover this.
2 types of Plan Management Provider
- Financial Intermediary – pays for invoices, provides a monthly statement, claims from the NDIA on your behalf
- Plan Management Provider – does everything the Financial intermediary does, as well as
- Work with you to source suitable providers
- Liaise with service providers
- Negotiate and coordinate provision of support
- Your Plan Manger is required to set up and maintain a Service Agreement for each provider you have selected to use.
- You choose a Plan Manager
- Work with the Plan Manger to choose providers who are registered with NDIS or unregistered
Cost: There are fees for set up, hourly and monthly costs – these are funded by NDIS (‘Improved Life Choices, p48 NDIS Price guide) – this is why you must ask for this option at the time of your planning conversation if you wish to use Plan Management
Administration: You are responsible for all Administration
- Payment of invoices
- Seek reimbursement from NDIA
- Retain all invoices
- Manage fund over the year
- Keep records to provide to NDIA, if requested
Service Agreements: You are required to set up a Service Agreement with each provider you use.
- You can chose to use NDIS Registered or Unregistered providers
- You can employ workers directly but you must comply with the relevant regulations (Aust Tax Office, Fair Work Act 2009, etc). Or there are agencies who will take care of payroll, insurance etc if you have found someone you want to employ. And there are some online sites that you can register to, where you can choose and employ support workers directly.
- NOTE – you can only employ family members living under the same roof in EXCEPTIONAL circumstances which must be approved by the NDIA
Cost: There are no costs as you are doing all the admin. However you must have the time and ability to manage this.
Choosing a Plan Management Option
There is no hard and fast, right or wrong options, it is about your choice, your time, how comfortable you are to negotiate with service providers and your organisational ability to manage the admin required and keep good records..
You can choose do use one method, or a mixture of 2 or 3.
Why would you do that?
Perhaps you don’t want to deal with the admin and you have chosen mostly registered providers, so you are happy for the NDIA to manage your child’s funds. But the physiotherapist your child has been seeing for 2 years is an unregistered provider and you don’t want to change physio- you can use a Plan Manager or self manage that component.
If you want to change your funds management option, you can request an Administrative Review to change your child’s funds management option.