A new NDIS rule is being developed (a DSS collaboration with the states and territories) under section 44(5) of the National Disability Insurance Scheme Act 2013 (NDIS Act).
The rule will assist the NDIA to understand whether a person is likely to spend in line with their plan, and if not whether a different plan management arrangement should be considered.
Recent changes to section 44 of the NDIS Act require the National Disability Insurance Agency (NDIA) to make decisions about whether a person (including a participant, nominee, and registered plan manager) is likely to spend NDIS funds on NDIS supports in accordance with a participant’s plan (as required by section 46 of the NDIS Act).
Currently there is no legislative guidance about how the NDIA should make this decision.
To find out more about the proposed new management of funding rules:
- Plain English summary (s.44(5)) – https://www.dss.gov.au/disability-and-carers-programs-services-ndis-reforms-changes-to-the-ndis-act/s445-management-of-funding-rule-plain-english-summary
- Easy read (s.44(5)) – https://www.dss.gov.au/disability-and-carers-programs-services-ndis-reforms-changes-to-the-ndis-act/new-ndis-plan-management-rules-easy-read-version
What engagement has there been with the disability community about this new rule?
The rule has been developed following co-design work and engagement on plan management decisions led by the NDIA.
Since July 2024, the NDIA has been leading codesign and engagement sessions on how decisions are made about plan management and how supports and safeguards can be used to reduce the risk of harm to participants if there is inappropriate spending. While this rule has not specifically been co-designed it has been informed by this earlier co-design work about the broader NDIS reforms.
Governments remain committed to codesign and consultation with the disability community in the development of new rules under the NDIS Act and are working to develop an engagement plan with the disability community.
What will the new rule do?
The new rule will assist the NDIA in identifying risks, applying appropriate safeguards, and making fairer and more consistent decisions about whether a person is likely to meet the requirements of section 46.
It is based on current policy and practice, and was informed by consultation with self‑managers about the current Self-management policy | NDIS – https://www.ndis.gov.au/participants/using-your-plan/self-management/self-management-policy
It will introduce greater fairness in decision making across plan management types including participants, nominees, child representatives and registered plan management providers.
Implementation of the rule by the NDIA will include capability building supports for participants to support spending in accordance with their plan and reduce the risk of inadvertent or unintentional spending.
If you have any questions or feedback about how the rule should be implemented, please email NDISConsultations@dss.gov.au.
