This article will illustrate how to best manage your NDIS funding from a plan management perspective. The first and maybe most important point to note is the difference between what Plan Management is, and what a Planner does.
Types Of NDIS Plans
There are various NDIS plans that can be tailored to an individual’s needs. Here are some of the common types of NDIS plans:
Individual Support Plan
This type of NDIS plan is designed for people with disabilities who need assistance with everyday tasks. The plan will include support services and equipment that are necessary for the individual to maintain their quality of life.
Transitional Support Plan
A transitional support plan is for people with disabilities who are transitioning from school to work or from one job to another. The goal of this type of NDIS plan is to provide the individual with the support and services they need to make a successful transition.
Community Access Plan
A community access plan is for people with disabilities who want to participate in their community. The plan will include supports and services that will help the individual participate in activities that they enjoy.
Short-Term Accommodation Plan
A short-term accommodation plan is for people with disabilities who need temporary accommodation. This type of NDIS plan can be used for respite care or when an individual needs to stay in a hospital or other facility.
NDIS Plan Approvals
Your NDIS plan will be approved by the NDIS Commission once they have reviewed your application and supporting documentation.
If you are approved for self-management, you will be able to manage your own NDIS funds. This means that you will receive your NDI funding directly into your bank account and you will be responsible for paying your service providers yourself. You will also need to keep track of all your expenditure and submit reports to the NDIS Commission as required.
If you are approved for plan management, you will nominate a plan manager who will then administer your NDIS funds on your behalf. This includes making payments to your service providers, as well as claiming invoices and keeping track of expenditures.
Plan managers may also provide additional support such as helping you find suitable service providers, preparing reports for the NDIA, and assisting with any disputes that may arise.
The approval process for both self-management and plan management can take up to 21 days from the date that the completed application is received by the NDIA.
How The Funding Works
There are several ways that funding for NDIS participants can be managed. The most common method is for the NDIA to manage the funds directly. However, there are also a number of different ways that plan management can be handled by third-party providers.
One way that some providers use is a proportionate approach, which means that they take a percentage of the total amount of funding that has been allocated to the participant. This percentage is generally between 10 and 20 per cent.
Another common approach is known as fixed fee plan management. With this type of arrangement, the provider charges a set monthly fee for their services. This fee is usually paid out of the participant’s NDIS funds.
Some providers also offer a combination of both proportionate and fixed-fee plan management. This allows them to tailor their services to meet the needs of each individual participant.
Whichever type of plan management you choose, it is important to make sure that you are comfortable with the arrangements and that you understand how the funding will be used. You should also make sure that you have a good working relationship with your plan manager so that you can ensure that your needs are being met.
Managing Your Funds
There are different ways of managing your funds under the NDIS. You can choose to have your funds managed by the NDIS Commission, an NDIS provider or a plan manager.
- If you have your funds managed by the NDIS Commission, you will need to use the My Place portal to access and manage your account.
- If you have your funds managed by an NDIS provider, they will be able to help you access and manage your account.
- If you have your funds managed by a plan manager, they will be responsible for managing your account on your behalf.
You can also choose to self-manage your own funds. This means that you will be responsible for managing your own account and making sure that all of your expenditure is within your budget.
What Sort Of Assets Or Private Income Sources Qualify For An NDIS Funded Plan?
Assuming you have completed the NDIS planning process and have been approved for funding, you will then need to choose a plan management option. One popular option is to self-manage your NDIS funds, which gives you complete control over how your budget is spent. Another option is to use a plan management provider, who can help you with managing your funds and ensure that they are being used in accordance with your NDIS plan.
One key difference between self-management and using a plan management provider is that with self-management, you are able to choose which assets or private income sources you would like to use to fund your NDIS plan. With a plan management provider, you may not have this same flexibility.
Qualifying Assets Or Private Income Sources For An NDIS-Funded Plan Can Include
- Savings: This can include any savings you have set aside, such as in a bank account, shares, or investments.
- Income: This can include earnings from employment, investment dividends, or other sources of regular income.
- Property: This can include equity in your home or other property ownership interests.
When choosing which assets or private income sources to use for funding your NDIS plan, it is important to consider both the short-term and long-term implications. For example, using savings may provide more flexibility in the short term but may not be sustainable in the long term if you do not have a reliable source of additional.
Plan management under the NDIS can be a great way to get the support you need to live an independent life. With plan management, you can choose your own service providers, set your own budget and have more control over your care. If you’re thinking about switching to plan management, we suggest talking to your current provider about the options and getting quotes from different providers to see what would work best for you. If you need more information on any of these topics, please visit our website at iconiccare.com.au or contact us.