The National Disability Insurance Scheme is designed to fund supports that are:
- directly related to the functional impact of a participant’s disability
- not the responsibility of mainstream systems
- are value for money and are reasonable
- necessary to help participants live an ordinary life.
However, purchasing supports that fall outside the scope and intent of the NDIS can lead to several issues:
Non-Reimbursement of Costs
The NDIS will not reimburse costs for supports not aligned with its guidelines. This means participants may have to bear the full cost of these supports. Examples of non-fundable supports include:
- those services that are the responsibility of other government systems (e.g., healthcare, education).
- Day-to-day living costs unrelated to a participant’s disability (e.g., rent, groceries).
- Supports that are likely to cause harm or pose a risk to the participant or others.
The NDIS has recently released a guideline of what is “not an NDIS” support. All self-managed participants must be across this. Billions of dollars of taxpayer’s money have been spent on items outside of the scope and intent of the scheme, including holidays, air conditioners, sensory toys, trampolines, sporting and other activity costs, just to name a few. This must stop. It places the whole future of the scheme at risk. If the NDIS loses the support of the public due to some participant (or provider) misspending, it will have detrimental impacts on all NDIS participants.
Plan Review and Adjustment
If the NDIS identifies funds used for non-eligible supports, it may trigger a review of the participant’s plan. This review could lead to adjustments in the funding allocation to ensure that future spending aligns with NDIS guidelines. It can also lead to the NDIS ensuring funding is agency-managed, limiting participants’ access to non-registered providers. This will particularly impact Participants in locations with thin markets of registered providers.
Potential Legal and Ethical Issues
Using NDIS funds for non-eligible supports can raise legal and ethical concerns. Providers and participants are expected to use funds responsibly following the NDIS Act and guidelines. Misuse of funds can result in penalties for providers and affect the participant’s future funding.
Impact on Support Quality and Outcomes
Purchasing non-eligible supports can divert funds away from essential services crucial for the participant’s well-being and development. This can negatively impact the quality of care and the outcomes achieved.
Loss of Trust and Credibility
Misuse of NDIS funds can erode trust between participants, providers, and the NDIS. It can also damage the credibility of the NDIS as a whole, potentially affecting the support and resources available to all participants. The public must have confidence that the resources they are paying for are being used as intended.
Participants and providers need to ensure that all supports purchased with NDIS funds are within the scope and intent of the scheme. Adhering to NDIS guidelines helps maintain the integrity and sustainability of the scheme, ensuring that it can continue to provide valuable support to those who need it most.
In PlanHELP’s experience many well-meaning people have purchased supports outside of the NDIS’ scope and intent. When they are informed, many do stop purchasing those supports. As the scheme tightens its monitoring process, more resources will focus on ensuring that allocated funding is spent as intended. This will result in clearer direction from the NDIS on what can and can not be purchased using NDIS funds.