The government has finally, a mere two days before it comes into effect, released the detailed ‘In and Out’ Supports List (officially titled National Disability Insurance Scheme (Getting the NDIS Back on Track No. 1) (NDIS Supports) Transitional Rules 2024). This is essential information for participants, families, and providers alike, as it clarifies areas that might have previously been ambiguous or causing concern…in a nutshell, it tells you what the NDIS funds and what it doesn’t.
What doesn’t seem to have changed is the requirement that a funded support must:
- be directly related to your disability needs; and
- be reasonable and necessary, which means it:
- helps you pursue or reach your goals
- helps with social and/or economic participation
- be value for money
- helps you maintain your informal supports
- is effective and beneficial to you
- is most appropriately funded under the NDIS
The only difference now is that we have a written guide on what is funded and what isn’t funded which will help reduce guesswork and limit opportunities for fraud.
Timelines
Plan Managers and Registered Providers – Providers have 30 days from October 3rd to comply with the new rules. This includes following the updated Supports List and ensuring their invoices reflect the changes.
Participants – Participants are given more time, with a 12-month transition period, to align their spending and plans with the new rules. This staggered approach makes the transition smoother without immediately disrupting participant funding.
Transitional Rules for Pre-October Plans
For participants who already have a plan approved before October 3rd, the transitional rules provide a pathway to ensure a smoother shift under the new legislative framework.
Grandfathering of Supports: If your current plan includes supports that are deemed “reasonable and necessary” but may not fit the new rules, those supports will remain valid for the duration of your plan under transitional rules. This means you won’t suddenly lose support.
Plan Reviews: When your plan is reviewed, the NDIS will assess whether the supports still align with the new guidelines. If necessary, adjustments may be made to bring your new plan in line with the updated list of NDIS supports.
Impacts on Plan Management: Participants with older plans may see changes in how their plan is managed. For example, the NDIA will now have more authority to intervene and modify plan management if funds aren’t being spent in line with the participant’s goals or support needs.
Transitional Measures for Debt
The NDIA have assured participants that they will not immediately pursue compliance action for minor mistakes during this transition period. According to the DSS report, a new transitional rule will be implemented to prevent debts from being raised in cases where the prohibited support costs less than $1,500, provided the participant has not received two prior warnings for similar purchases.
This transitional rule applies for a period of 12 months to participants, giving them some breathing room to adjust to the new guidelines. Registered providers and plan managers, however, have a stricter deadline, with only 30 days from October 3rd to ensure they comply with the new rules.
It’s important to note that any purchases of non-NDIS supports over $1,500 will result in a debt, so participants and providers alike must remain cautious as they navigate this new framework. For Providers, there’s certainly a lot to process in a short amount of time!
The Substitution Rule Has a New Name
The Substitution Rule, now called ‘Replacement Support Determinations‘, has been narrowed considerably. While the ability to request exceptions for items not typically covered remains, it is limited to a few specific supports:
- Standard commercially available household items
- Smartwatches, tablets, smartphones, or apps that aid with accessibility or communication.
This stricter framework means fewer participants will be eligible to request exceptions, especially for more costly or complex supports.
My Big Six Takeaways
Hairdressing for Hair Washing: Thankfully, hair washing has been removed from the exclusion list, meaning participants can now claim this support. However, services like pedicures and manicures remain excluded.
Legal Costs: Legal costs are now on the exclusion list in a move that could heavily impact self-managers. This means that self-managing participants employing their support staff fees will need to pay out of pocket for employment contract reviews or other legal services they may need to manage their employees.
Repairs for Disability-Related Property Damage: One positive addition is the capacity for the NDIS to fund repairs for disability-related damage to property. This could alleviate a significant financial burden for participants whose equipment or activities cause damage to their living environments.
Specialised driver training: It appears that specialised driver training will be more widely accessible for participants with a range of disabilities. However, it must be stated in the participant’s plan, and it must be delivered by a specialised driving instructor.
Support coordination: This is now a stated support, meaning it needs to be explicitly written into the participant’s plan. This change will significantly impact self-managing participants, who currently purchase support coordination with their core funding, limiting the support they get to understand and utilise their plan.
Meal Delivery Platforms: It’s the out list for these guys unless the food (ingredient) component can be separately identified from the prep and delivery costs on the invoicing. Many platforms run with a co-payment option currently, but the jury is still out on whether this will be enough to meet the new guidance.
My Deep Dive – is ILO Done For?
The Individual Living Options (ILO) arrangements, which allow participants to enter agreements with supportive housemates, may now face significant changes due to the explicit inclusion of rent on the out list.
Why This Change Matters
Many ILO agreements relied on the informal exchange of rent reductions for supportive housemate services, such as overnight supervision or passive supports. With rent now explicitly ‘out’, these housemates will need to be compensated in full through standard wages for their support, particularly for activities like overnight care. This represents a significant cost increase for participants, as support that was once exchanged for a rent discount will now need to be formalised and fully paid for as part of the participant’s funded support package.
Impact on ILO Dynamics
The shift from rent compensation to formal support wages is likely to alter the dynamic in shared living situations. Previously, housemates providing passive support may have viewed the arrangement as a more mutual exchange, where living together felt cooperative rather than transactional. However, with the need to pay housemates as formal support workers, the relationship may feel more structured and less like a friendly or supportive partnership. This change in dynamic could also affect the sense of community and shared responsibility within these homes.
What About Existing Agreements?
How current ILO agreements will be treated under the new rules is still uncertain. Some participants may have signed contracts that include rent reductions in exchange for passive support services. Whether these agreements will be allowed to continue under transitional rules or need to be renegotiated remains unclear. This leaves participants in a state of limbo as they navigate the new expectations and possible renegotiation of living arrangements.
The explicit guidance that participants can not use NDIS funding to cover rent could lead to significant extra expenses, as participants may now need to pay for formalised support services instead of relying on informal agreements with housemates. This shift also seems to counter the NDIS’s principle of ensuring “value for money,” as the cost of engaging paid support workers for overnight shifts or passive supervision is far higher than the cost of reduced rent arrangements.
Final Thoughts
These are just my initial reflections after briefly reviewing today’s guidance, but my main takeaway is clear: both participants and providers need to stay vigilant in reviewing their plans and supports to ensure they comply with the new rules. The NDIS is not a fixed entity; it’s constantly evolving, influenced by lobbying and policy changes. What may seem set today could shift tomorrow, so staying informed and responsive to ongoing updates from the agency is essential. The transition period does seem to offer some flexibility, but being proactive and up-to-date will help avoid potential issues down the line.
For more information or assistance with your NDIS experience, please reach out to our friendly Intake and Engagement Team at 1800 262 245 or fill out our service request form.
