Based on the Management of Funding Amendment Rules document, the NDIA has introduced amendments that will take effect in 2025. While a specific date has not yet been provided, these changes will have significant implications for NDIS providers.

Here’s a summary of the key changes:

Risk Assessment Framework
The NDIA must now follow a structured framework when assessing whether a participant’s plan management choice presents an “unreasonable risk.” This assessment will be based on:

• Previous risk management strategies

• Types of supports

• Potential for harm

• The impact of risk, rather than the nature of disabilities

Provider Registration Requirements
Plan management rules will vary depending on the type of plan management selected:

• When a plan is NDIA-managed, participants will only be able to use registered providers.

• For plan-managed funds, there will be increased scrutiny on provider qualifications and service standards.

Potential impacts on NDIS providers:

Service Delivery

• Providers offering high-risk or specialised supports (such as positive behaviour support) may face increased pressure to become registered.

• Non-registered providers may encounter challenges in serving participants whose plans are NDIA-managed due to new risk assessment criteria.

Payment Processing

• Payment systems must be more robust to prevent delays that could be classified as creating “unreasonable risk.”

• Providers need to ensure timely invoicing and clear communication around payment processes to avoid disruptions.

Compliance Requirements

• Registered providers may experience increased demand due to new risk management requirements.

• There will be heightened scrutiny of service delivery standards and provider qualifications, especially in relation to risk management.

• Providers must demonstrate compliance with stricter controls and regulations outlined in the amendments.

Administrative Requirements

• Providers will need to adapt their processes to support participants with different plan management arrangements.

• Evidence of risk management strategies and safeguards may be required.

• Additional documentation may be needed to demonstrate compliance with service standards.

Business Implications

• Some providers may need to reconsider their registration status based on their client base and service types.

• Investment in additional safeguards or support mechanisms may be necessary.

• These changes could impact provider choice and competition within the NDIS market.

With these amendments set to take effect in 2025, NDIS providers should begin reviewing their compliance frameworks, service delivery processes, and administrative requirements to ensure they align with the new rules.

For further updates and guidance, keep an eye on official NDIA announcements.

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