NDIS Funding Periods Explained
One of the policy implementations under Section 33 of the NDIS Act affects how the NDIS funds are made available to participants with their NDIS plan. In other words, the total amount of funding in a plan, per categories, will be split into instalments or periods over the life of the NDIS plan.
What does Funding periods mean for providers?
Providers must match their services, costs, and claims to the available funds in a funding period. They need to take into consideration the funding period of a participant when they are engaged to ensure they do not invoice outside the funding period, which may result in the rejection of their claims.
However, if service delivered span across two funding periods, it may require two separate claims or split invoices.
Furthermore, service agreement with the participant must reflect the funding period of the plan.
What does funding periods mean for participants?
The total amount on participants plan will not be released all at once. Funding will be released in equal instalments for each category, over the duration of the plan. This change does not affect your existing plan. It’s only effective from your next new plan or review.
What are the NDIS Funding Periods?
The 3 main Funding Periods are:
- Quarterly [every 3 months]. This applies to funding in most supports
- Monthly. Home and Living supports such as: Support Independent Living [SIL] and Plan Management will be released monthly.
- Up Front: Funding for supports such as: Assistive Technology or Home Modification could be released up front to pay suppliers.
For example:
A participant has a new 1year NDIS plan which include $100,000 for Assistance with Daily Life. The funding period is quarterly, and the plan start date is 01/01/2025 with an end date of 31/12/2025. See below table for the funding periods and allocated funds for such support:
Support | Funding periods | Allocations |
Assistance with Daily Life | 1/1/25 – 31/3/25 | $25,000 |
Assistance with Daily Life | 1/4/25 – 31/6/25 | $25,000 |
Assistance with Daily Life | 1/7/25 – 31/9/25 | $25,000 |
Assistance with Daily Life | 1/10/25 – 31/12/25 | $25,000 |
Total | $100,000 |
What happens to unused funds during a funding period?
Unused funds roll over to the next funding period. It will keep adding up and become available for the duration of the plan. However, unused funding at the end of the plan will not be carried over to the next NDIS plan.
What happens if a participant runs out of funds in a funding period?
During each funding period, participant will have access to the amount of funding allocated, plus any rollover from the previous funding periods. Any expenditure over this amount can only be paid in the next funding period.
Note that if there is a continues over spent or over-servicing, it a sign that the total funds will run out before the end of the plan. This may be a clear indication to seek a plan review.
This information was brought to you courtesy of Optimum Plan Management. Phone: 1300607404
