On August 22, 2024, the Australian Parliament passed the National Disability Insurance Scheme Amendment (Getting the NDIS Back on Track No. 1) Bill 2024. This legislation introduces a range of important reforms aimed at improving the NDIS and enhancing its operation for participants and providers. With these changes set to take effect in mid to late September, it’s essential for stakeholders to understand the new provisions and their impact on NDIS processes.

What These Changes Mean for Participants and Providers

The amendments focus on key areas such as access, funding, plan management, and reassessment processes. Below is an overview of the major reforms and how they will affect both participants and service providers:

1. Separate Pathways for Accessing the NDIS (Section 21)

The NDIA will now assess applicants to determine if they meet disability requirements, early intervention requirements, or both. This creates distinct pathways for participants, with more tailored support options for those who will benefit from early intervention.

• Impact for Participants: Applicants will experience a clearer, more streamlined process when applying to access the NDIS.
• Impact for Providers: Providers may need to adjust their approach when supporting clients through the application process based on the pathway determined by the NDIA.

2. Updated Disability and Early Intervention Requirements (Sections 24 & 25)

The new legislation clarifies that participants should only access the NDIS if their required supports fall within the remit of the scheme. Mainstream services will retain responsibility for supports that do not meet NDIS-specific criteria.

• Impact for Participants: Participants will receive clearer guidance on what supports are available through the NDIS versus mainstream systems.
• Impact for Providers: Providers will need to align their services with this clarification to ensure only NDIS-eligible supports are offered under the scheme.

3. Impairment Notices (Section 32BA)

Participants will now receive an impairment notice detailing the impairments for which they qualify for NDIS supports. This notice will help guide both participants and providers during the planning phase.

• Impact for Participants: Clearer communication regarding the impairments that qualify for support under the NDIS.
• Impact for Providers: Providers will be able to more accurately tailor services to the specific impairments identified in the notice.

4. Limits on New Access Requests (Section 19)

If a participant’s status is revoked and they seek a review, they cannot submit another access request until the review is completed.

• Impact for Participants: This ensures a more orderly and transparent review process, preventing multiple concurrent requests.
• Impact for Providers: Providers assisting with access requests should be aware of this limitation and guide clients accordingly.

5. Funding Allocations and Periods (Section 33)

New NDIS plans will now include total funding amounts, component funding amounts, and defined funding periods (initially 12 months). This change aims to help participants manage their budgets more effectively and ensure funding is available throughout the plan’s duration.

• Impact for Participants: Participants will have clearer visibility over their funding and how it is allocated across different periods.
• Impact for Providers: Providers will need to work within the funding limits set for each period, ensuring supports are delivered within these financial constraints.

6. Plan Management Adjustments (Section 44)

The NDIA will have the authority to change how a participant’s plan is managed if there are concerns about the proper use of NDIS funds. This includes changing the plan management type if it is deemed that a participant, nominee, or plan manager is unlikely to use funds in accordance with the plan.

• Impact for Participants: Some participants may see changes to how their plans are managed if the NDIA raises concerns about the management of their funds.
• Impact for Providers: Providers working as plan managers should ensure full compliance with NDIS funding rules to avoid management changes.

7. Supports for Impairments (Section 34)

The NDIS will now only fund supports directly related to the impairments for which participants have qualified. This reinforces the principle that NDIS funding should be targeted at the specific needs of each participant.

• Impact for Participants: Participants can expect their plans to be more focused on the impairments they meet the access criteria for.
• Impact for Providers: Providers should tailor their services specifically to the impairments listed in each participant’s plan, ensuring compliance with the updated funding guidelines.

8. Plan Variations (Section 47A)

Under the new laws, certain changes can be made to a participant’s plan without the need to create a new plan. This adds flexibility to how plans are managed and adjusted over time.

• Impact for Participants: More flexibility to update aspects of their plans without going through the full review process.
• Impact for Providers: Providers will need to adapt to changes in participant plans as they occur, without the need for entirely new plans.

9. Claims and Payments Framework (Section 45A)

A new legislative framework for claims and payments will be introduced, setting out how claims should be made and within what timeframe. Claims must now be submitted within two years of the support being provided.

• Impact for Participants: Clearer guidelines on claims and payment processing.
• Impact for Providers: Providers must adhere to the two-year claim window to ensure they receive payments for services rendered.

10. Eligibility Reassessments (Sections 30 & 30A)

The NDIA will have the ability to request specific information or require participants to undergo assessments for eligibility reassessments. The new laws also allow the NDIA to mandate reassessments for specific groups, such as children turning 9.

• Impact for Participants: Participants will need to comply with information requests or risk having their NDIS access revoked.
• Impact for Providers: Providers will play a critical role in supporting participants through these reassessment processes, ensuring that necessary information and assessments are completed.

Moving Forward

With the new NDIS laws set to take effect 28 days after Royal Assent (expected in mid to late September), participants and providers alike must prepare for these changes. While some adjustments will be implemented immediately, others—such as the creation of new participant pathways and the introduction of a flexible planning framework—will be phased in over time.

Providers should ensure their services are aligned with the new legislation to maintain compliance, while participants are encouraged to stay informed and seek guidance where necessary. The NDIA will continue to update resources and provide further details as the reforms are rolled out.