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3 October Legislation Changes

From 3 October 2024, there are some changes to how the NDIS works to bring greater clarity and flexibility to participants.

We want to reassure participants that for most people there won’t be fundamental changes to how you experience the NDIS right now.

But we know that, for some, any change to the NDIS may cause uncertainty.

What is not changing is the purpose of the NDIS. The NDIS will continue to provide participants with disability-related supports.

The NDIA will provide information, education and support to participants about changes to the NDIS.

There is also a 12-month transition period to help participants to adjust to some of the new changes.

What are the key changes that start on the 3rd of October?

The introduction of a definition of NDIS supports

The Australian Government has introduced a definition of NDIS supports, to give people greater clarity about what NDIS funds can and cannot be used for.

From 3 October, you can only spend NDIS funding on things that are NDIS supports or are approved replacements for NDIS Supports.

The list of NDIS Supports is based on existing guidance, so in most cases there is unlikely to be any change to the supports a person is currently using.

The lists make it clear what the NDIS does and does not fund, and will help participants and their families make more informed choices about how they use their NDIS plan funding.

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We know it will take time for people to learn about and understand these new lists and we’ve heard concerns about what may happen if someone accidentally buys something which is not a NDIS Support.

That’s why there will be a transition period for the first year to help people to understand the new NDIS Supports lists.

We will work with participants who make mistakes to make sure that they understand the new rule, and they are helped to access supports which are funded by the NDIS.

Importantly, this means that a person who makes a mistake and claims an item which is not an NDIS support will not have a debt raised for first or second mistakes made in claiming where the support is worth less than $1,500.

This does not apply if a participant purchases illegal items with funding from their plans.

If incorrect claims are repeated or fraudulent, we will take further action.

From this week we are communicating with every participant and provider about the changes and how they work.

We will also help people:

  • understand the new rules
  • find and use NDIS supports.

Under the new changes – the lists are a transitional rule that will be in place until a final rule is made. The final rule will be developed with the disability community and with State and Territory Governments.

Substitution or replacement support

We know that every participant has their own unique needs, and in specific circumstances a participant might need to use their funding for a support that is not an approved NDIS support.

The substitution rule will enable participants to request to replace an existing support with a support that is not an NDIS support, in circumstances where a standard item might be able to provide better outcomes and value than an NDIS Support.

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We will work with participants to help them understand the information they will need to provide us before we consider whether to fund a replacement support.

NDIS funding and plans

Plans approved from 3 October onwards will have a total budget amount, funding component amounts and funding periods.

This change makes clear the total funding available in a plan and how long the funds need to last. You can’t spend more funding than what’s available in your plan.

For now, all new plans created after 3 October will be for no longer than 12 months. In the future, most people’s plans will go for longer than this. We will let people know as soon as this changes.

Keeping people informed

We want everyone to learn about and understand these changes, and we’ll keep communicating with people to ensure they know what these new changes mean for them.

We are committed to working with people with disability and the disability community to make sure we get the changes right.

We will keep listening to feedback and involving people with disability in how we improve the NDIS.

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