Critical Changes to NDIS Legislation (October 2024)

The National Disability Insurance Scheme (NDIS) has introduced legislative changes effective from October 2024. These amendments aim to enhance service delivery, improve provider flexibility, and strengthen participant outcomes. For providers, these changes represent both opportunities and new responsibilities in service delivery.

The purpose of the NDIS remains the same, continuing to provide NDIS participants with disability-related supports and services.

Below is a breakdown of the critical updates:

Definition of NDIS Supports

One of the most significant changes is the introduction of a new definition of NDIS supports. This ensures that participants can only use NDIS funds for items and services explicitly classified as supports under the Scheme. Lists outlining what constitutes NDIS supports, replacement supports, and non-supports are now available, helping participants and providers make informed decisions. This change aims to reduce ambiguity and improve consistency across the program​.

NDIS Funding and Plan Management

Updates to funding and plan management emphasise participant autonomy while introducing measures to streamline processes. Participants will experience a simplified approach to plan approvals and reviews, making it easier to navigate the system. Additionally, the legislation includes provisions to clarify how funding can be used for specific categories, such as assistive technology and home and living supports, promoting better alignment with participants’ goals​.

• Clear Budget Structure for Plans: Plans created after October 3, 2024, will specify total funding amounts, component allocations, and defined funding periods, typically 12 months. This structure helps participants manage their funding more effectively by providing transparency on how much funding is available and the timeframe in which it must be used. While initial funding periods will standardise at 12 months, future plans may offer flexible durations of up to 12 months based on individual needs.
• Flexible Plan Adjustments: The new legislation allows specific changes to be made to a participant’s plan without requiring an entirely new plan. This flexibility ensures that participants can adapt their supports to evolving needs more efficiently. For those under the new framework, plan variations will allow adjustments to funding components and periods within the established budget.
• Needs-Based Planning: Participants transitioning to the updated planning framework will undergo a comprehensive support needs assessment (Section 32L). This assessment evaluates whole-of-person disability needs, ensuring funding aligns closely with the participant’s impairment-related requirements. While the framework is not yet implemented for existing participants, future plans will gradually transition all participants to this needs-focused model.

Claims and Payments Framework

The updated legislation introduces a new Claims and Payments Framework, codified in Section 45A of the National Disability Insurance Scheme Act. This framework provides clear and consistent guidelines for how claims should be made under the Scheme. Effective from October 3, 2024, these changes impact all participants and providers by standardizing the claims process and enhancing accountability.

A key feature of this framework is a definitive timeline for claims submission. From the commencement of the legislation, all claims for supports provided must be lodged within two years of the date the support was delivered. This ensures that claims are processed within a reasonable period while minimising administrative complexities.

For detailed information about specific changes and implementation requirements, providers and participants should consult the NDIS Commission website and seek appropriate professional advice where necessary.

NDIS Summary of Legislation Changes