Under Section 33 of the NDIS Act, important changes are now in effect which affect how NDIS funds will be made available to Participants in their NDIS plans. 

This will affect HOW and WHEN Providers deliver and bill for their services.

The total amount of NDIS funding that Participants receive for each category of support will be split into instalments over the life of the NDIS plan, with a specified amount made available in "Funding Periods".

This means that Providers must match the cost of their service to the available funding in a funding period.

Here is a summary of what Providers need to know right now. New information is being added all the time and this resource will be updated as we hear more from the NDIA.

What are these NDIS changes and how do they affect NDIS Providers?

These changes will affect how and when Providers can invoice Participants for services delivered.

Participants will have their funding released in equal instalments over the duration of their plan, called funding periods. This means that they won't be ablt to pay Providerswhich means they will have limited funds during each period.

Providers will need to determine the Funding Period of a Participant when they are engaged to make sure they don't charge more than the Participant has available for a period.

These changes will be applied to new NDIS plans and to current Participants' NDIS plans when they are reassessed.

Currently the default funding period has been 12 months (the duration of a plan). When this will change to shorter intervals, like quarterly, we do not know exactly. We are waiting to see what plans look like.

Providers need to be ready for the change.

What are Funding Periods in the NDIS?

Funding Periods break the availability of a Participant's NDIS funds into instalments.

NOTE: Currently, funding periods are 12 months. When the NDIS will change the Funding Periods, we don't know.

How often they receive an instalment depends on the type of support. The 3 main Funding Periods are:

1. Quarterly (every 3 months): funding for most supports will be released quarterly. 
2. Monthly: Home and Living supports like Supported Independent Living (SIL) will be usually be released monthly
3. Up front: Funding for supports like Assistive Technology or Home Modifications will be released up front to pay for the item.

For example:
A Participant has a new 1 year NDIS plan which includes $36,000 for Assistance with Daily Life. Their funding period is quarterly (every 3 months).

A Participant engages you to provide the services of a support worker. 

The Participant will have $9,000 available when their NDIS plan starts and then an additional $9,000 each quarter until the NDIS plan period ends.

Your service agreement and schedule of supports should include this information because you must deliver services according to these funding periods and funding amounts so that you are paid more easily.

Any unspent funding will be carried forward and made available in addition to the next instalment. 

When does a Funding Period start?

The Funding Period starts when the Participant's NDIS plan starts. It is not linked to a calendar month.

For example:
If their NDIS plan starts on 5 May, this will be the start of their Funding Period. If they have quarterly funding, the next instalment they receive for a support will be 5 August.

What happens if a Participant does not spend their funds in the funding period?

Unused NDIS funds rollover into the next period - they will keep adding up and will be available for the duration of the Participant's plan.

But any unused funding at the end of their plan will not be carried over into your next NDIS plan.

For example:
A Participant has $12,000 of funding for Psychology in a 1 year NDIS plan. The Funding Period is quarterly.

When their NDIS plan starts, they have $3,000 available for psychology, but struggle to find a Psychologist for the first 4 months. This means in their second Funding Period they have $6,000 available ($3,000 + unused funds of $3,000)

Where can a Provider see the dates and amounts of a Participant's Funding Periods?

Plan Managers and Support Coordinator will be able to see all of these breakdowns in Participant plans.

NDIS providers CANNOT see them :( You will need to ask Participants for these details when engaging them.

Claiming for Supports with Funding Periods

When must I invoice for my supports?

Claims must match the funding period. If a support spans two periods, it may require two separate claims or split invoices.

The funded amount is made available from the start of each Funding Period so that Participants can pay their invoices during the funding period.

For example:
Your new NDIS plan starts on 27 March. You engage a support worker from 17 - 31 March.

You will need to issue 2 invoices: one for support delivered 17-27 March and one for support delivered 28-31 March.

What happens if a Participant runs out of funds in the current period?

Each funding period, the participant will have the amount of funding allocated + any rollover funds.

If they 'spend' more than this amount, they can only pay the overspent amount in the next funding period, if at all.

For example:
You have $10,474 of therapy funding in your plan.

This amount will be released quarterly, so you will have $2,618.60 available for therapy each quarter. If your therapy costs more than this, you will not be able to claim it until your next funding period. 

NOTE: If you spend more than this in even one funding period, your funding will not last for the duration of your NDIS plan. 

Ask for a reassessment if you need to change the frequency of funding periods or the amount of funding.

Key Points for Providers

1. All new NDIS plans will show funding periods for each category of funding.
2. You will need to know a Participant's Funding Period when engaging new clients. 
3. You need to invoice for services delivered in the current Funding Period. If your service spans more than one, you may need to issue more than 1 invoice.
4. Providers cannot see the Funding Periods in the NDIS portal. You will need to ask Participants.
5. Be patient with Support Coordinators and Plan Managers - everyone will have to adjust their processes with no time to prepare.

Important things you need to do

1. Update your Service Agreements
   Make sure that your service agreements/schedule of supports talk about funding periods. You will need to specify this moving forward.
   For example, don't commit to spending more during a funding period than you are receiving for the period.
    
2. Update your systems
   You will need to collect Funding Period information for new clients. You will need the plan start date and the Funding Period.

3. Keep Informed
   Keep checking the MyCareSpace for updates on Funding Periods - we will update this resource as the NDIS tells us more.

New Words

• Funding Amounts – This is the total dollar value of a Participants NDIS plan.
   
• Funding Components – These are the categories that make the Participants plan, like Core Supports, Capacity Building, and Capital (assistive technology, home modifications, etc.).
   
• Funding Periods – This is the new part. Funding periods control how much of a Participants plan budget you be accessed at a given time over the course of the plan. So if a participant is approved for a 2 year plan, they might only be able to use 3 months’ worth of that funding at a time. This restricts when a NDIS Participant can spend their NDIS Plan Funds.
   
• Section 33 - Section 33 of the NDIS Act sets out the core requirements of a participant’s plan. Changes to the NDIS Act in 2024 introduced funding periods. The main concept of funding periods is a way for the NDIA to set how often participants can access part of their funding, across the length of their plan, in simple terms its to limit the ability for Participants and their service providers to draw down on big chunks of their funding in very quickly.

New Words

• Funding Amounts – This is the total dollar value of a Participants NDIS plan.
   
• Funding Components – These are the categories that make the Participants plan, like Core Supports, Capacity Building, and Capital (assistive technology, home modifications, etc.).
   
• Funding Periods – This is the new part. Funding periods control how much of a Participants plan budget you be accessed at a given time over the course of the plan. So if a participant is approved for a 2 year plan, they might only be able to use 3 months’ worth of that funding at a time. This restricts when a NDIS Participant can spend their NDIS Plan Funds.
   
• Section 33 - Section 33 of the NDIS Act sets out the core requirements of a participant’s plan. Changes to the NDIS Act in 2024 introduced funding periods. The main concept of funding periods is a way for the NDIA to set how often participants can access part of their funding, across the length of their plan, in simple terms its to limit the ability for Participants and their service providers to draw down on big chunks of their funding in very quickly.