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Many people are unclear about what defines the different methods of managing NDIS support funding. As an NDIS participant, you are entitled to choose exactly what supports the funds in your budget are paying for, but the degree of control you actually have over how that money is spent — as well as what specific providers will be providing the supports — depends on which method you choose.
Keep in mind, you can mix and match what kind of funding categories are managed by others (others being the NDIA or an NDIS Plan Manager) and which funding categories are managed by yourself — so it is worth considering the extra personal control (and extra personal responsibility!) that comes with managing each category.
For more information on the 15 support funding categories, see this article on the official NDIS Website. But first, let’s understand how plan management works:
A self-managed NDIS Budget is exactly what it sounds like: It’s an NDIS budget managed by you, the participant. By self-managing your NDIS funding, you’ll be in control of your support needs – and able to arrange and pay for them however you prefer. This gives you increased flexibility and control over your supports — and potentially more independence — but comes with extra responsibility. You also have the flexibility to negotiate costs in order to get the best support possible. This way, you can use your savings to buy more or better quality supports.
Please note that there is a self-management policy, and the list of responsibilities required of you if you choose to entirely self-manage is long and potentially arduous. Some responsibilities of self-managers include:
Also, please be aware that you must show how the supports you have purchased are linked to your NDIS goals (at every plan reassessment), and that if you choose to hire someone directly to support you that you must meet your obligations as an employer, the same as any other employer in Australia.
If the many responsibilities of self-management seem daunting, but you want a little more flexibility than what is offered by direct budget management handled by the NDIA, choosing a plan manager to manage your budget may be for you.
The term for a plan manager managing your NDIS budget is Plan-Managed, and all plan managers are required to be registered NDIS providers. The benefits of going with a plan-managed budget include:
This is often referred to as Agency-Managed. This is by far the most hands-off option (for the participant), being where the budget is managed directly by the National Disability Insurance Agency (NDIA). This comes with the least amount of personal administrative responsibility, but means that — while you can still choose what supports you will recieve — the amount of say you have in how the budget is allocated is extremely limited compared to other methods.
Firstly, for any support funding categories that are managed by the NDIA, the supports you recieve must be provided by a registered NDIS provider. It can, it certain circumstances, be beneficial (especially budget-wise) to use unregistered support providers, so this is a clear downside. Also, while an agency-managed budget is not so different to a plan-managed budget (both will manage your funding, pay your invoices, and manage your financial records & reporting), the NDIA is in no way obligated as your budget manager to help you understand the types of supports (or prices of supports) you will recieve.
As a registered NDIS provider in Melbourne, we view agency management as a last resort, reserved for those with more severe disabilities — NDIS participants who would not benefit from the additional control (and understanding of their budget) that comes from other management methods.
There are a number of situations that could potentially call for mixed management methods. For example, if you require assistive technology such as a wheelchair and you are somewhat of an expert on such technology, you may choose to have your core supports and capacity supports managed by a registered NDIS provider and/or the NDIA, while self-managing your capital supports in order to give yourself full control over what assistive technology and home modifications your budget provides you with.
Of course, everybody is different and will benefit from different management methods in different areas. If you are unsure about which support funding categories fall under core, capacity and capital supports, see this video which explains each category in depth.
If you are an NDIS participant looking for registered NDIS plan management Melbourne, and/or you’re looking for a provider that can deliver nearly every support you may require (no matter how your plan is managed), contact us today for an obligation-free phone consultation.
We’re a Registered NDIS provider Melbourne trusts, and we would love to hear from you. There are different ways to reach out to us. Please choose one according to your preference.
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As a Registered NDIS Provider in Melbourne, VSS has been established to provide quality service to people with disability as defined by NDIS. These services are provided in a safe and competent manner with care and skill and compassion acting with integrity, honesty, and transparency. We will never lose sight of our participants’ individual needs and requirements.
We acknowledge the traditional owners of this land, the Wurundjeri People of the Kulin Nation, now known as the City of Maroondah, where Indigenous Australians have performed age-old ceremonies. We acknowledge and respect Wurundjeri People’s deep spiritual connection to the land and their unique ability to care for Country. We pay our respects to their Elders, past, present and emerging.
