Funding Management Types for NDIS Plans

National Disability Insurance Scheme (NDIS) funding can be used to access a range of supports and services, including therapies, equipment, and personal care. There are different ways of managing the funding allocated to a participant - Agency-managed, Self-managed, and Plan-managed, or Participants may choose a combination of the above.

Agency-managed: The NDIA manages the payments and administration of NDIS plans for those that don’t have the time or ability to manage themselves. Under this option, only registered NDIS service providers can be used, and must adhere to the NDIS price guide limits.

Self-managed: Self-managed participants have full control and responsibility for managing their NDIS funds. Providers can be registered or unregistered, but are not bound by NDIS price limits, resulting in a higher potential for fraud and mismanagement of funds. In addition, self-managing NDIS funds includes administrative tasks such as paying service providers (sometimes paying out of pocket and being reimbursed), keeping complete budget records and claiming directly from the NDIS portal.

Plan-managed The NDIA will provide additional funding in a plan to pay for a Plan Manager who pays service providers on your behalf, helps keep track of funds and takes care of financial reporting. Providers can be registered or unregistered but must stay within NDIS price guide limits. Plan managers are registered with the NDIA and are required to meet certain quality and safety standards, such as those set out in the NDIS Practice Standards. They act as a financial intermediary and knowledge base to guide participants through maximising their funding to achieve their goals, while relieving them of the administrative burden.

Managing NDIS funds can be a complex and time-consuming process, and the majority of participants choose to engage a registered plan manager to help them with this task. It is important for NDIS participants to carefully consider their options for each management type and choose the one that best suits their individual needs and circumstances.