The Complete Guide to Self-Managed NDIS Funding

There are many ways to manage an NDIS plan. Several participants use a plan manager or have their funding managed by the National Disability Insurance Agency (NDIA), but a significant number are opting for a more hands-on approach by self-managing their funding.

Self-managed NDIS funding allows participants to have more control over how their supports are arranged and funded. It can provide greater flexibility, a range of providers, and a better understanding of the use of funding. As with anything, there are duties as well as downsides you must be aware of before you move in.

Whether you're considering self-management for the first time or reviewing your current arrangements, this guide explains how it works, what is expected of self-managers and the benefits and challenges to consider.

What Is Self-Managed NDIS Funding?

Self-managed NDIS funding is one of the ways participants can manage the money in their NDIS plan.

With this option, the participant or their nominee takes responsibility for arranging support, paying providers and keeping records of how funding is spent. The participant is responsible for the handling of provider payments, rather than a third party.

Self-management is appealing to many due to its increased flexibility under the NDIS pricing arrangements. Participants may have access to a wider variety of providers, subject to applicable price limits. This can make it easier to identify supports that meet individual preferences, cultural needs or specific needs of people with down syndrome or cerebral palsy.

Self-management is not an excuse for the participants to use funding as they wish. All purchasing and services will remain subject to NDIS rules and will be relevant to the goals and supports included in the plan.

The amount of responsibility can be intimidating initially, but once systems are established, it becomes an easy part of life.

How Self-Managment Fits Within the NDIS

There are three options for funding the National Disability Insurance Scheme.

The first is agency management for NDIA-managed participants, in which the NDIA pays agencies directly for the services they provide on the participants' behalf. People who choose this option typically must engage with NDIS registered providers.

The second is plan management. A plan manager processes invoices, provider payments and part of the budget. The funding for plan management is usually included in an NDIS plan under the category “Improved Life Choices”, so that participants do not need to access their own support budgets to pay for plan management.

The third option is self-management. Participants do not need to select one strategy for the whole plan. In certain instances, support categories may be addressed differently (e.g. based on specific circumstances, funding).

For example, a person can opt to receive their daily support as self-managed NDIS funding, and their therapeutic support as plan-managed. This freedom enables individuals to design an arrangement that suits them, not a template for all supports.

What Does Self-Management Look Like Day to Day?

Self-management is often misunderstood to be a lot of paperwork every week. In practice, however, the day-to-day operation is very simple.

A participant may be sent an invoice by a support worker, make a claim via the MyPlace NDIS portal, receive the payment and then pay the support worker. Invoices, receipts and service contracts are kept for future reference.

It could also be relevant for therapy appointments, community involvement support, supported independent living, specialist disability accommodation and approved purchases of assistive technology.

A good deal of organisation is important. Many self-managers have a bank account for their NDIS funding and have digital folders of their own invoices and records. Others employ spreadsheets to help keep track of the budget and track expenditures for various funding periods.

The amount of administration varies from person to person. The time spent managing a plan can vary significantly depending on the number of supports per month received. The critical point is to have clear records and know where the funds are going during the course of the plan.

Why Some Participants Choose to Self-Manage

Self-management appeals to participants for different reasons, but most come back to the same theme: greater control.

Participants can arrange their own payments and financial management, rather than leaving it to a third-party organiser, and they can develop their own support plans.

The most important advantage for some is flexibility. Self-managed participants may be able to communicate with a wider choice of providers and be more likely to find a suitable one. This is especially useful for regional locations or if there are cultural or scheduling preferences among participants.

Some like increased transparency when it comes to their money. Taking part in provider payments and budget tracking may help to ensure that spending is monitored throughout the plan period and that supports are adjusted as needed.

The extra responsibility is often offset by the greater autonomy and control that self-management offers many participants.

The Challenges of Self-Managing an NDIS Plan

Self-management provides more flexibility, but there are responsibilities that may be difficult for some participants.

The most apparent is administration. Throughout the plan, the invoices must be reviewed, the records must be maintained, and spending must be monitored. Can be quite manageable, but demands consistency.

They are also responsible for knowing and applying NDIS rules set by the NDIS Quality and Safeguards Commission, and ensuring that support is linked to their disability related goals and plan.

These obligations are a fair price for the additional control self-management offers for many. Some people might prefer to have someone else take care of the administrative details of the plan.

Self-Management, Plan Management and Agency Management

The NDIS gives participants three different ways to manage their funding. Each choice comes with its own level of flexibility and administration.

Self-Management

Self-management involves participants or nominees being responsible for managing funding, arranging supports, and dealing with provider payments.

This is the most flexible and gives you the widest choice, but also needs the most effort.

Plan Management

The plan manager (including providers such as plan partners),handles and manages the client's invoices and payments.

Plan management is a popular option for many participants because it decreases the paperwork required, yet provides access to a wide array of providers. The Improved Life Choices category is a typical source of funding for this service.

Agency Management

In the agency system, the National Disability Insurance Agency provides direct payment to the providers.

This option has the least administration for participants, but the support available may be restricted as providers are typically NDIS registered.

The decision will be based on the participant's situation, confidence and who is supporting them. The convenience may be appealing to some, and the extra control over the situation may be preferred by others.

Getting Started With Self-Management

There are no complex systems or specialist knowledge needed to make the transition to self-management. A few simple processes can do the trick.

Many experienced self-managers advise having a separate bank account for the NDIS funds. Separating transactions from personal finances can make it easier to keep track of your budget and records as you run your NDIS transactions.

Having a basic system for storing your invoices, receipts and service agreements is also helpful. Digital folders or paper folders will do – it's important to be able to locate documents when needed.

Take time to understand your funding and how it is allocated by the Support Category before approaching providers. Knowing your budget can assist you in making good decisions and preventing unnecessary stress during the planning period.

With increasing confidence, most participants come to adopt a routine that suits them. The objective is to achieve a system that helps you fund responsibly and concentrate on the important supports.

Is Self-Management Right for You?

Not everyone will be able to manage themselves; for some, it will be reasonable. This will depend on how comfortable you are with administration, how much support is available around you and which services you are using.

You might be a good candidate for self-management if you:

• Wish to choose providers and support workers.
• Be at ease with doing invoices and record-keeping.
• Have a family member or carer who can support in the event of a need.
• Desire for greater clarity on how your funding is being spent.
• Value flexibility when arranging supports and services.

If these don't fit your scenario, then plan management or agency management may make more sense. Keep in mind to select the plan option to get the best possible results from your plan.

Common Mistakes to Avoid

It is normal for most new self-managers to make a few mistakes in their learning process. Luckily, a number of these can be prevented with planning.

Waiting weeks for invoices and receipts is one of the common issues. It will be much easier to keep records updated for tracking and responding to requests for further information from the NDIA.

It is also important that you know what funding is available before agreeing to additional support or services. It is important to review your budget regularly to prevent overspending in one area of your budget versus another.

If there is any doubt about the suitability of a support, it is better to ask questions now rather than later. It is best to be cautious to save time and stress.

Final Thoughts

Self-managed NDIS funding is a way for participants to have more control over how their services are organised and delivered. For many, this translates to flexibility, improved provider relationships and enhanced awareness of the use of funding.

Self-management is accompanied by responsibilities, too. Accurate record keeping, knowing the NDIS requirements, and monitoring your budget will take time and commitment.

No single management option is appropriate for all. Some participants are content to handle all aspects of their plan themselves, while others want a plan manager or agency management to handle it.

If you are considering self-management, consider the advantages and disadvantages for yourself. If you need support coordination, talk to your planning team, support coordinators or peer support groups, and they will help you determine if it is right for your situation and objectives.