Running out of funds in your NDIS Plan is the last thing you want and it is essential to make sure this doesn’t happen to you.
As plan managers we notice that this happens more often than you may think.
When it does, you will most likely not have access to therapies and/or the supports that you need. The service provider who may have already provided the services to you, cannot be paid and will be disadvantaged. Their relationship with you may be damaged.
This may not have happened to you but it is a worry for many NDIS participants.
We want you to feel confident that your needs will be met at all times. Our experienced NDIS plan manager (and qualified bookkeeper) gives her expert guidance on how to avoid running out of NDIS funding at every stage.
Whether you’re self-managed, plan managed or NDIA managed, there are important things to do at each of these stages:
- Just received your funding
- Things to do every month
- Halfway through your funding cycle
- Next NDIS planning meeting is approaching.
If you’re self-managed or plan-managed, you’ll need to work through these steps (although a good NDIS plan manager will offer guidance). It’s a good idea to set a small amount of time aside every month. You can get a trusted family member or friend to help you.
If you have a support coordinator, part of their role is to keep track of your NDIS spending. And they can do an even better job when you understand what your funding can be used for and how to keep on track.
Set aside a 5-10% contingency amount
Life rarely goes exactly to plan. The best household budgeting experts recommend putting aside a ‘rainy day’ fund for those unplanned events. Your NDIS funding is the same. It is wise to save a portion between 5-10%. This money can be used for extra supports or reports if needed.
Know how much you can spend against each NDIS category
Your funding is there to help you achieve your NDIS goals. You can choose who you want to engage to help you with those goals. But your NDIS funding is not just a bucket that you can dip into for any supports you need. Your funding is allocated against specific categories:
- Core Supports – in general this is the most flexible category but some areas like transport have little flexibility.
- Capacity Building Supports – focused on building independence and skills to achieve your goals. There is little flexibility in this category.
- Capital Supports – for specific items you need of assistive technology, home or vehicle modifications and specialist accommodation. This funding cannot be used for anything else.
Note: Some therapies and supports can be charged against a couple of different categories. And others, not. Plan well for what you will spend in each category. That way you will avoid having funding running out in a particular category.
It’s frustrating when there is money in the NDIS plan but you can’t spend it on your highest immediate priorities. And it’s painful when you have to finish working with a favourite support worker, just because of budget. And you are more vulnerable when you can’t get the supports you need.
If you’re not sure, check in with your NDIS plan manager or support coordinator. And if you’re self-managed, your Local Area Coordinator can answer your questions.
Just received your NDIS Plan: Plan and prioritise your spending.
Apart from the complication of the NDIS supports categories, planning your NDIS funding is very like planning a household budget. There are now so many ways to manage this – paper, spreadsheet, budgeting app. Choose one that you like and that you will actually use.
For each category, set how much you’ll spend in each month. Remember to think about:
- Holiday periods – therapies often don’t happen during the summer holidays. And on public holidays, disability support worker rates are higher.
- Reports – therapists are generally required to write a report after a number of sessions. Make sure you know when you’ll need yours and how much they will cost.
- Travel – this is often a forgotten cost. Remember, if a therapist visits you (or your child’s school for example), there will be a travel fee. This includes both the person’s time and the distance travelled. Visit their premises to keep costs down. Choose a therapist who is close by. Look for therapists who serve other NDIS participants at the same location.
Make sure you prioritise the supports you need. The NDIA only allocates ‘must have’ supports – not ‘nice to have’ ones. Some of these supports may be more important to you than others. If you think about this now, it makes decision-making later much easier.
It’s worth talking with your service providers about how they can keep costs down. Always get a service agreement from your service provider. That way you can properly plan what everything will cost. And there will be no unwelcome surprises!
Things to do monthly: Track your spending.
You’ll get a monthly report of your NDIS spending if you’re plan managed or have a support coordinator. It’s easy to leave that unopened in your email inbox! But make sure you open it to make sure that everything is in line with what you planned.
Check that all of your NDIS-funded invoices have been submitted. Generally, the service provider submits them directly, but mistakes can happen. Review the monthly report and make sure nothing has been missed. Check it against your planned spending, and adjust your budget if needed.
If you’re running out of funding for a certain service, talk to your NDIS plan manager or support coordinator. See if there is another category of supports available to use.
If you’re self-managed, try to keep your budget tracking up to date as you go. It’s so much easier than an inbox that you have to search through to find missing receipts. Make sure you’ve paid all the invoices you’re received.
Set aside a convenient time each month. Once you have completed your monthly review, reward yourself. If you have a friend or family member who can help, make it a social occasion. Enjoy the time together. What’s fun is more likely to get done!
Halfway through your Plan: – Review your supports!
If you’ve been tracking your NDIS spending monthly, the review halfway through your NDIS funding cycle should be easy. Tracking the funds is a great opportunity. It allows you to look at how well your NDIS funding is meeting your NDIS goals.
Ask yourself these NDIS budget review questions:
- How well are my supports helping me meet my goals?
- Do I need to change my therapies and supports or tweak anything?
- Is anything likely to be different from what I originally thought? This could be an extra holiday, for example.
- Are these changes within the scope of my existing plan? Or do I need to discuss them with my Local Area Coordinator or disability services provider? Do I need to make those changes now? Or can they wait until my next planning meeting?
As you go through the questions, you can adjust how you are spending your allocated funding.
When the National Disability Insurance Agency (NDIA) allocates money to you, they do this based on what they believe is reasonable and necessary to help you reach your goals. If your circumstances have changed, your funding may no longer be adequate to provide the supports you need. Contact your Local Area Coordinator. Request a plan review as soon as possible. Doing so will ensure you receive the necessary support and various forms of assistance.
You should immediately notify the NDIA and complete a change of circumstance form to request a plan review.
Planning for your next NDIS funding round
So, you’ve done well. You’ve managed the funding and spent it wisely towards achieving your NDIS goals. Now it’s time to plan for your next round of funding.
Request any reports you need from therapists and disability support providers. Do this well in advance of your next NDIS planning meeting. As a rule of thumb, allow about six weeks for reports to get done. Submit all the reports that you would like to support your funding application to the NDIA and/or your LAC. The recommendations in these reports will form the basis of the amount and type of funding you receive.
At the Review, Your Local Area Coordinator/NDIA Planner will meet with you either on phone, via Zoom or in person depending on what you choose. They will discuss your how you spent the funds in your current plan and what you may need in the future.
What happens if you run out of NDIS funding?
If you plan and track your budget, you’re unlikely to run out of funds. If it goes sideways, and you run short on NDIS funding, including your ‘rainy day’ allocation, you have a few options:
- Reach out to your service providers. They may be able to adjust the supports they provide to fit within your smaller budget, so that your essential needs are still being met.
- Reduce some of your core supports and therapies. This requires making hard choices about which serve you best, and keeping those. Remember that if you let one service go, the support worker or therapist may not be available to start working with you again when you have enough funding available.
- Check in with your NDIS plan manager. They will be able to talk you through your options. They may be able to find a way through that you haven’t thought of.
- Talk to your Local Area Coordinator. They may put in for an early plan review
- Pay for the supports out of your own pocket. Depending on your circumstances, you may or may not be able to do this.
Identify any potential problems as soon as possible. This will give you and your NDIS team more time to develop a solution.
Look at other possible funding options
Additional financing options exist if your NDIS money is depleted. These consist of the following:
- General Practitioner Management Plans (GPMPs) for people with complex needs.
- Allied Health Services under Medicare for people of Aboriginal and Torres Strait Islander descent.
- Better Access initiative, which aims to improve the treatment and management of mental illness.
- General practitioners can also assist you in choosing the best funding choices for you.
- Individual health insurance – depending on your policy and private health insurance. Refunds might be possible. For further information, please contact your provider.
Conclusion
You have your NDIS funding for a reason. That’s why it’s so important to make it last for the whole funding period. If not, you could miss out on disability support services that are essential for your well-being.
A competent and experienced NDIS plan manager helps you easily plan and keep track your NDIS funding. They manage accounts and pay invoices. This allows you to stay informed of your available funding. Speak with us today, to learn how we can help you manage your NDIS plan so that you can focus on living your best life.
Put in place our top tips to feel confident and relaxed about avoiding running out of NDIS funding.
