Reaching the hard to reach: Pricing and travel for remote and very remote areas
The NDIS offers extra funding for providers delivering services in remote and very remote areas. We know it’s confusing to understand how locations are classified as remote and very remote, and how extra loadings are calculated. We have made a summary of the most important information you need to know about this topic. This is particularly useful if you are working in or considering working in remote and very remote areas.
How do I know what is a remote or very remote area?
The NDIA uses the Modified Monash Model (MMM) to determine if a location is in a regional, remote or very remote area. The classifications are based on population size and locality. See the table below for the different classifications and their descriptions.
Image from NDIS Price Guide 2019-20. Delivered by the National Disability Insurance Agency.
Remote and very remote loadings
Price limits are 40% higher in remote areas and 50% higher in very remote areas than the standard limit. There is no additional loading for supports in Metropolitan areas, regional centres or regional areas. Providers should refer to support price limits based on where the support is actually being delivered.
There may be cases where local providers are not available. The NDIA may enter into contracts with specific providers for provision of services to more remote regions. The contract will specify the cost of travel and other expenses in these areas.
Geographical reclassification
In July this year, the NDIA amended its geographic arrangements. Towns classified as ‘regional’ and completely surrounded by ‘remote’ or ‘very remote’ areas, will be classified as ‘remote’ for planning and pricing purposes. There are 38 locations that benefit from the geographical reclassification. You can check these locations on the NDIS website.
Please note, the towns included in the list are 'regional’ on the Health Workforce Locator tool. However, they are subject to an additional 'remote' loading under the NDIS reclassification.
Provider travel
Before reading below, please be aware of the following rules set by the NDIA regarding provider travel costs:
Providers can only claim travel costs if the participant has agreed, and the Support Catalogue says providers are eligible to claim travel costs for the support item.
Travel time can be claimed if the provider is required to pay the worker for their travel time, or the provider is a sole trader.
Price limits for provider travel vary depending on the zone where the service is provided. The maximum time providers can claim for travelling to each participant is:
Zone 1-3 (city areas): 30 minutes
Zone 4-5 (regional areas): 60 minutes
Zones 6-7 (remote and very remote): as agreed up to the hourly rate for the support item.
Capacity-building providers can claim for time spent travelling from their last participant to their usual place of work. Core support providers are not able to do so. Also, if a worker provides services to more than one participant in a region, travel costs can be apportioned between the participants.
It is positive that more funding has been allocated for services and supports being delivered in remote and very remote areas. The funding encourages more providers to operate in these locations and ensures they are still profitable. Most importantly, the funding means that participants across Australia can access the services and supports they need and have more choice.
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