May 29, 2020
The National Disability Insurance Scheme (NDIS) is Australia’s first nationwide scheme that provides funding to eligible Australians aged under 65 who have a permanent and significant disability.
The National Disability Insurance Agency (NDIA) is the Commonwealth government agency responsible for implementing and administering the NDIS.
More than 270,000 Australians have already accessed the NDIS with numbers expected to rise as the rollout of the Scheme continues in Western Australia and more people with disability become eligible for NDIS.
With such a large number of people accessing funding for disability supports, it makes you wonder, is the NDIS government funded and how does NDIS funding work?
In this blog, we cover how NDIS funding works and where the funding comes from.
The NDIS is jointly funded by the Commonwealth and participating states and territories using a pooled approach. The Commonwealth provides more than half of the funding.
Funding for the NDIS is also taken from the Medicare levy, which increased from 1.5 per cent to 2 per cent in July 2014. This revenue raised is directed to the DisabilityCare Australia Fund which then reimburses governments for NDIS expenditure.
In 2019, it was predicted that $11.2 billion was spent on the NDIS with $6.8 billion of that coming from existing disability funding and the Medicare levy.
The Scheme works by providing individuals with NDIS funding to access approved disability support services that have been identified as reasonable and necessary within their plan.
There are three categories of funding within the NDIS that participants can receive money for:
Depending on how you choose to manage your NDIS funding, accessing these funds to pay providers will vary. If you choose to self-manage your plan funds, you have two NDIS funding options to pay for your supports:
Once you receive an account, invoice or timesheet from your provider you then make a Payment Request using the online myplace portal.
Money from your NDIS plan budget will be paid into your nominated bank account within 24 to 48 hours. You can then pay your provider from your bank account.
After you receive your support you can pay your provider using your own money, obtain a receipt and submit a Payment Request to have those funds paid back into your nominated bank account from your NDIS plan budget. You will be reimbursed within 24 to 48 hours.
Another option for managing your funds is to request for plan management to be included in your plan. Here is a breakdown of how plan management can benefit you:
Working with Disability Plan Services as your NDIS Plan Management provider will allow you to maintain control of your support services without the difficult administration and record keeping.
If you are new to the NDIS or are unfamiliar with what services and supports are available to you in your community, Disability Plan Services helps to facilitate the best supports for you and provide you with advice that suits your individual needs and goals.
Our team are experienced NDIS Plan Managers and know how to make the most of your funding.
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