Decoding your NDIS Plan

What are Funding Periods? 

Funding periods are set intervals of time when funding in each of your NDIS budgets will be made available to you. Each budget will have its own funding periods. Generally, funding periods will be three months, however they can vary. You will need to check your plan document to confirm what funding periods apply to your budgets. 

Why are fundings periods important to understand?

Because many participants have not had a plan with funding periods in it before, there is sometimes confusion about how they work and potential impacts on funding if not managed effectively. 

During each funding period, you can only spend up to the amount of funding available in that time. Funding periods were introduced to help participants to manage their budgets, and they do not change your total funding amount in your plan. While they are intended to increase flexibility and reduce the risk of overspending your plan, often they mean that every budget needs to be closely monitored to make sure that the number of services or shifts you want to have in each funding period can be paid for. 

What can become an issue if funding periods aren't managed properly?

This can be an issue because services can only be claimed from the funding period in which the date of service occurred. If you run out of funding before the next funding periods starts, you cannot use the new funding period to pay for services that happed in the previous funding periods. However, if you did not use all of the funding that left over funding will still be available when the new funding period starts.  

What if it still doesn't make sense?

This can all be difficult to understand and work out, so it is important to ask for assistance from your Support Coordinator, LAC, or Plan Manager if you are unsure if funding periods will be an issue for you.

The Legislation References

As per Chapter 3, Part 2, Section 46(1)(b) of the NDIS Act (2013), participants “must spend the money in accordance with the participant’s plan.”

This is clarified in Item 75 of the Explanatory Memorandum, which states: “The requirement to spend money in accordance with the plan means that any specifications or limitations set out in a plan must be complied with. For example, if funding periods are specified in a participant’s plan, they are required to comply with those and not exceed the funding allocated to those funding periods.” 

What are Stated Items? 

Stated items are supports or budgets in your NDIS plan that can only be spent in a particular way. They most often appear in Capacity Building budgets like Support Coordination, Behaviour Support and Improved Daily Living. 

How do I know if a support is a stated item?

Each budget in your plan document will be labelled as either 'Flexible' or 'Stated'. Generally, only Core budgets are made flexible. In a stated budget, like Improved Daily Living, the description of the budget is where you will find the information needed to know what supports you are able to use that budget for. The description is usually found below the funding periods table in your plan document. 

As an example, the description in your Improved Daily Living budget says " Therapy supports Supports to assess and provide strategies to help you build your skills and independence. You can use your therapy budget flexibly for a combination of allied health therapy, including a Therapy Assistant to put therapy strategies into practice and to help you with these." This would mean that you can use your funding to see any allied health practitioner (like an occupational therapist, speech pathologist or physiotherapist) as long as the therapy they provide is related to your funded disability and NDIS goals. The therapist must also be one of the therapists listed in the NDIS Pricing Arrangements & Price Limits. 

However, if the description in your Improved Daily Living budget lists specific supports, it would  say something  " Support for an Occupational therapist - Physiotherapist to assess and provide strategies to increase skills.", this means that you can only use your funding to see an occupational therapist and a physiotherapist. 

If I want to use a therapy type that isn't listed in my stated items?

If you have specific supports listed in your plan and want to access a support outside of those, you will need to ask the NDIA to vary the plan. This is called a Plan Variation Request under section 47A of the NDIS Act. You can make this request through your LAC or Support Coordinator.

The Legislation References

As per Chapter 3, Part 2, Division 2, Section 32E(3) of the NDIS Act (2013), the reasonable and necessary budget must provide for each support the certain funding that will be provided, and that the funding may be spent on only one support, or class of supports that are NDIS supports for the participant.

This is clarified in Item 36 of the Explanatory Memorandum, which states: “Paragraph 32E(3)(d) provides that funding for stated supports can only be spent on that support (or class of supports) and cannot be spent for any other purpose, including acquiring other NDIS supports.”