Change 6: Cessation of ‘Intra-Plan Inflation’
“Intra-Plan inflation” is a term referring to the instance in which an NDIS participant uses all of their NDIS funding in a timeframe less than the specified plan length, resulting in an early plan review and additional funding being allocated within their specified plan timeframe. It is a key driver of NDIS cost blowouts.
“Overspending of NDIS plans remains a key issue, particularly where someone encourages a participant to spend all of their NDIS funding before the end of their plan, known as intra-plan inflation, so they can receive extra funding within their set plan timeframe,” NDIS Minister Shorten said.
The main contributors to intra-plan inflation include:
The NDIA found that intra-pan inflation added over $3.3 billions to NDIS costs in the 12 months to February 2024.
- Exceeding funded hours and rates for supports.
- Overspending core budgets outside their intended purpose.
- Incorrectly claiming supports.
Some examples of incorrectly claimed supports include:
- Mobile phones
- Bond for cleaning fees
- Theme park passes
- Treadmills
- TV antennas
- Bird sees
What’s Changing?
To help address this issue, the Minister has enacted measures to ensure the cessation of ‘Intra-Plan Inflation’ occurs, except in exceptional circumstances. Under the new vision of NDIS 2.0, plans will allegedly include a flexible budget built around findings from a support needs assessment. This assessment will be arranged through the NDIS. The NDIS is implementing these changes in two phases:
- Any new plan created after October 3, 2024, will be an ‘Old Framework Plan.’
- These plans will be capped at 12 months and include a total funding amount instead of line-item funding.
- Funding will be grouped into categories, and payments outside of the allocated budget will only be considered in exceptional cases.
2. New Framework Plans (12-18 Months Away)
- All participants will eventually move to a New Framework Plan.
- A flexible budget will be introduced, based on a support needs assessment.
- Funding will be divided into funding periods, meaning a participant may have a three-year plan with annual funding periods.
- Funding will only be added in very specific situations such as in a crisis or emergency.
- The rollout of these plans is expected to take up to five years.
What does this mean for NDIS participants?
When a participant has a plan reassessment after October 3rd 2024, their plan will now include: a total funding amount, funding component amount and funding period.- Total funding amount: The full NDIS budget for the plan’s duration.
- Funding component amount: The allocated funding for each category of support.
- Funding period: The timeframe for accessing allocated funds, with a maximum period of 12 months.
Final Thoughts
The cessation of intra-plan inflation is a major step towards improving the sustainability of the NDIS. These changes aim at ensuring participants receive the necessary funding while preventing overspending and mismanagement.
While the transition may bring uncertainty, understanding the new framework will help participants navigate these changes smoothly.
What Will the Review Assess?
- The effectiveness of music and art therapy for people with disabilities.
- Qualifications and registration requirements for therapy providers.
- Appropriate pricing for music and art therapy under the NDIS.
What Does This Mean for Participants?
- The NDIA has delayed the release of operational guidelines for therapy supports until 2025.
- No changes will take effect until the review is complete and the findings are considered.
- Music and art practice associations have been invited to submit peer-reviewed evidence supporting the effectiveness of these therapies.
This review will determine whether music and art therapy should continue as a NDIS-funded support at current pricing levels or be subject to further changes.
For further information, please visit: (NDIS Official Announcement)
Looking Ahead
The NDIA has acknowledged concerns from participants, therapists, and disability advocates and has agreed to review the pricing changes before finalising them.
- The Independent Pricing Review will report back by March 14, 2025.
- The Expert Advisory Committee (EAC) will assess the evidence on these therapies starting in July 2025.
- Until then, participants should check their plans to see how these changes will affect their access to therapy.
If you have concerns about these changes, you can provide feedback to the NDIA or seek advice from your service provider.
REFERENCES:
(a) – Changes to NDIS legislation / NDIS government (2024, December 20) . https://www.ndis.gov.au/changes-ndis-legislation
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