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Connect and Grow Magazine Issue 14 October - November 2024
Since October 3rd, there have been significant changes to the NDIS.
The NDIS has communicated that individuals with an NDIS plan have 12 months to understand the new list of supports and providers, which includes sole traders, who have 1 month to familiarize themselves with these changes and comply with them.
I have spoken with various individuals regarding the changes they have noticed since the NDIS legislation became law. Here are some key observations:
1. NDIS plans are now set for 12 months.
2. Plans incorporate stated and flexible funding, allowing funds to be used across various services, such as core support and allied health.
3. Many individuals with an NDIS plan have reported decreased funding for core support and allied health services.
4. Some people have received letters stating they are no longer eligible for the NDIS. These individuals are encouraged to contact their Local Area Coordinator for assistance with community support and therapies, which many have found challenging to access.
5. Payment locks are becoming more common, affecting numerous businesses, including sole traders, who need compensation for services because they cannot produce the required evidence of the changes.
These noteworthy changes have impacted many individuals relying on NDIS support and service providers.
Let's discuss payment locks!
What is a payment lock? It is when the payment integrity team stops the business from being paid for services. The invoices may have been submitted into the NDIS portal for payment by the plan manager or the participant who self-manages their funds, and the payment integrity team reviews them and puts a hold on them, not releasing the funds. It can take a few months before anyone can get some answers when this occurs.
This leaves the provider/business needing payment to pay themselves or their staff. Meanwhile, other invoices are being submitted and need to be paid for.
The triggers for a payment lock are:
The payment integrity team does spot checks on invoices and business.'
There is a discrepancy in the invoice
Something is missing from the invoice
Administration errors may also trigger an alert, leading to a payment lock.
Should a business experience a payment lock, the following may occur:
All invoices will be paid once the payment integrity team is satisfied that the shift has occurred.
The business is asked to provide evidence that the shift has occurred. This includes a support log with the participants' or their nominated person's signature; without the signature, payment will be declined. Shift notes or care plans are also requested. In many instances, I hear businesses ask for risk assessments.
If a business cannot provide supporting evidence that the shift occurred as above, it may find that it is not paid. By the time it reaches this point, several invoices for work provided could be unpaid.
If you experience a payment lock, you must consult someone who understands what is going on. Social media is NOT the right place. You may also need legal input, so be careful when handing over documents.
Now, the business is to meet the NDIS code of conduct, and part of that is the duty of care, which would include providing a safe work environment where risk assessments come into play. The business is also required to ensure the person's safety, so choosing to stop supporting because the invoices are not paid and the duty of care is not being met could result in a fine for breaching the NDIS code of conduct.
In some instances, businesses have shared with me that they have chosen to help the people they provide support to move onto another company as it is clear they will not get paid, leaving them unable to keep their business going.
The businesses that have contacted me are mostly unregistered NDIS providers. Many provide STA and core support, but there have also been some NDIS-registered providers. At this stage, only one who contacted me has been paid, and they hired a lawyer.
Privacy and Confidentiality
A business must comply with privacy and confidentiality legislation and obtain consent to share information. It is highly recommended that your company have different consent forms for different purposes.
Foundational Supports.
Foundational support is planned to commence on July 1st, 2025. The goal of foundational supports, which sit outside of NDIS, is to build capacity. At the meetings I have attended as part of the consultation process, there are aspects of the services that Support workers could deliver, some that could sit with allied health professionals and even peer-to-peer support.
Foundational support has two parts: one where a person will have an NDIS plan and the other where the person is deemed ineligible for NDIS.
We may see more individuals considered better suited for part or all of their support through foundational support and community services. However, more information still needs to be provided regarding how these services will be funded or the business requirements; additional details are forthcoming. For now, we can only wait to see what will be offered. What we do know is that NDIS does NOT fund these services. This may significantly impact individuals living with disabilities and could lead to businesses that provide core supports under NDIS losing work.
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For providers, remember that the NDIS cannot give you business or legal advice; there are other places to get that information, such as the business legal obligations website. Remember you are a business providing services to someone with an NDIS plan.
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Written by Jacqui Grant
(c) 2024 Break Free Consultancy
Disclaimer: All information is accurate at the time of publication and is subject to change. Always check the NDIS website for the most up to date information as things are changing.