NDIS Insights: Deciphering the Numbers

10 minute Read: It's been a big week for NDIS numbers. The federal budget was announced Tuesday, followed by the latest quarterly report on Wednesday.

Between the two, there are some key insights into future activity and spending for NDIS that Plan Managers should understand. We've summarised these below for you:

2024-25 Federal Budget:

Unsurprisingly, scheme spending continues to rise despite multiple methods to curb it. In 2023-24 the NDIS will cost $44.3b, which is a 21% on the previous year, and $2.4b more than forecast in last year's budget. 

Additional targeted programs were announced with a further $468.7m for key activities which were summarised by the Department of Social Services:

• Better advice: $45.5 million over four years to establish a NDIS Evidence Advisory Committee (commencing 1st July 2025) to build more evidence about what works for participants. 
• A clearer pathway: $20.0 million over two years to start preliminary consultation and design work on reforms to help people with disability navigate services.
• Fresh approach to pricing: $5.3 million to undertake preliminary work to reform NDIS pricing arrangements. The Independent Health and Aged Care Pricing Authority will work with DSS and NDIA to develop a pricing data strategy.
• Architecture to implement reforms: Strengthened governance and advisory arrangements to support the implementation of NDIS reforms. This includes an NDIS Implementation Advisory Committee, which will oversee the initial period of implementation, and an NDIS Review Implementation Working Group, which will collaborate on NDIS reforms across all Australian Governments.
• Co-design and fighting fraud: $213.8 million of recently announced funding to fight fraud and co-design NDIS reforms with people with disability. This includes upgrading of NDIS Quality and Safeguards Commission's technology infrastructure to assist in data collection, analysis and fraud detection.
• A new Specialist Disability Employment Program: an increase of $227.6 million, bringing the total to $5.4 billion over the next five years, for the program commencing 1st July 2025. This includes a modern digital platform to connect providers and participants, increased flexibility, and tailored supports.

This investment comes on top of $732.9 million provided in the 2023–24 Budget and the $511.12 million provided in the 2023-24 MYEFO. 

This simple DSS fact sheet is a helpful resource for summarising these key initiatives.

Q3 2024 Quarterly Report

The latest NDIS quarterly report yields some interesting information, statistics, and activities that all Plan Managers should be familiar with. The report focuses on three key areas; financials, resolving Participant requests, and improvements

The Numbers & Financials

• 649,623 Total Participants. Growth of 6% YOY (vs 14% previous YOY). Processing volumes temporarily impacted by adaptation to the new computer system.
• 43% of Total Participants are aged 0-14 years. 70% of new entrants were aged 0-14 years (up from 65% previous year)
• Average payments per Participant was still 1.8% higher than expectations, but decreased from 2.1% in the December quarter.
• Plan inflation is decreasing down to 7.5% in March, which is the lowest rate since September 2021.
• 63% Plan Managed (408,702 Participants), with 9% Agency Managed and 29% Self Managed.
• 56% of Payments ($5.7b) were managed by a plan manager, while Fees accounted for $135m (2.4% of payments)
• The number of Plan Managers has stabilised over the past two years while the number of Plan-Managed Participants has grown by 48%, resulting in an uplift in workload for Plan Managers.

Resolving Participant Requests

Anyone who's tried to contact the NDIA recently will acknowledge the NCC experienced a substantial increase in volume of calls. 416,415 calls (43.5% increase year on year and 27.3% increase since the prior quarter). The higher call workloads reflected increased requests for reviews of participant plans, which grew year on year from 15% to 32%.

The NDIA is addressing this additional workload in a number of ways:

• A six month remediation plan that prioritises first plans, unscheduled reassessments and targeted scheduled reassessments.
• A dedicated team to prioritise urgent plan reviews based on risk factors
• Recruiting more planners and NCC staff
• Increasing the number of staff supporting participant escalations
• Ongoing improvements to PACE
• Improving communications with Plan Managers and Support Coordinators about the role the play in supporting Participants to use their supports appropriately.

Areas of Improvement

• NDIS Review and Disability Royal Commission: The federal government is yet to provide direction and decision on the recommendations of both of these programs, despite beginning the process of introducing the Getting the NDIS Back on Track No. 1 Bill 2024. Co-design activities are also underway for 10 initiatives related to the NDIS review recommendations.
• Reform for Outcomes: (Link) This was a program initiated as part of the 2023-24 federal budget, that included 6 key areas for focus on effectiveness and sustainability. As part of this, NDIA has implemented a proactive contact process to work with Participants to ensure their spending remains on track that has resulted in a 14% reduction in the number of Participants at risk of overspending.
• Co-Design: The NDIA works with 27 Disability Representative and Carer Organisations (DRCOs) who participate in NDIA co-design projects, as well as the Independent Advisory Council. 
• Fraud and Integrity: In March we saw increased payment times as the NDIA introduced additional compliance checks. This is just one of 5 capability projects that are being introduced:
  • Piloting of myGov for the mobile app - consistent experience across government
  • Implementation of stronger payment scrutiny for all outbound payments - more time to assess claims prior to payment
  • Monitoring of claims against expired plans - more comprehensive review process
  • Increased pre-payment checks on cash reimbursements - requiring evidence for payment
  • A campaign focused on participants that are unable to be contacted

The NDIA is working with 15 other Commonwealth regulatory and law enforcement agencies to develop a scalable and repeatable assurance and prevention model. The model will facilitate increased payment integrity across government services.

Want to stay informed?

Plan Managers Advocacy Group (PMAG) was established as a collective effort to amplify the voices of plan managers and their supporters, advocating for policies that support the sustainability and integrity of NDIS plan management. It is led by Angela Vithoulkas, small business advocate and Non-executive director of Credability Systems. Angela has vowed to help plan managers petition government for not only the future of their small businesses, but for 62% of Participants who will lose their choice and control if Plan Managers are wiped out by the government.

Find out more and join: www.Credsys.com.au/advocacy 
Email: advocacy@credsys.com.au