Service agreements have long been a guiding light in the National Disability Insurance Scheme (NDIS), acting as a playbook to steer the relationship between participants and providers, and keep everyone on the same page.
From rights and responsibilities, through to support schedules, fees and charges, service agreements form an A-Z guide of what both parties will give to – and get from – the relationship.
But with the introduction of funding periods reshaping how NDIS supports are delivered and budgets managed – signalling a significant shift in the Scheme – service agreements will almost certainly need to change too. And that means now might be the perfect time to revisit yours.
Whether you’re a participant keen to stay on track with your supports, or a provider navigating service bookings and claims processes, service agreements are key.
A foundation document for the relationship between NDIS providers and their clients, service agreements provide a written record of the expectations each party has of the other, and lay out on paper information including:
Although written service agreements aren’t mandatory in the NDIS – except for when Specialist Disability Accommodation supports are being delivered – they’re still covered by Australian Consumer Law and the National Disability Insurance Agency (NDIA) recommends them.
Negotiated by a participant (or their plan nominee) and their provider, service agreements offer a layer of protection for everyone involved. While the NDIA isn’t a party to them, it will take action if the terms of an agreement don’t align with the NDIS Act and the NDIS Pricing Arrangements and Price Limits.
The NDIS website includes lots of useful resources to help participants and providers, and we’ve previously published the below articles too.
To date, NDIS service agreements have often spanned a period of several months, or even years. That’s meant supports can be scheduled well in advance, funding can be set aside to pay for them, participants can be certain they have a provider in place, and providers can manage their cashflow.
But with the advent of funding periods, all of that’s up in the air, and at this stage no one’s quite sure what comes next.
What we do know is that the NDIA is trying to rein in Scheme spending, and to do that it’s slowly introducing funding periods. That means blocks of time that break a participant’s overall funding package (or specific components of it) into smaller chunks have started to appear in some NDIS plans, and before too long they’ll be common practice.
As an example, if someone has a three-year plan, some of their funding might be released in 12 equal portions (one portion every three months), while funding for high-cost, regular supports – like Supported Independent Living – is likely to be released in monthly increments.
To add a little confusion, unused funds will roll over from one funding period to the next – but if the participant doesn’t use all their funding by the end of their plan, it won’t be added to the budget in their new plan.
And when it comes to funding for once-off purchases (like assistive technology), that’s more likely to be made available as a lump sum at the start of a new plan.
We’ve explored the topic of NDIS funding periods in this article.
The NDIA says funding periods have been introduced to make sure NDIS supports are delivered consistently and people can continue to access funding across the lifetime of their plan.
While that may be the case, the changes have also sent many providers and their clients back to the drawing board when it comes to service agreements, prompting them to revisit the documents and adapt them to the new world of NDIS funding.
Although funding periods don’t change the dollar amount allocated in an NDIS plan, they do affect when that funding can be accessed and spent. And that means participants and providers need to agree to a schedule of supports for each funding period that not only ensures continuity of service but also contains costs and avoids rejected claims.
Payment integrity is an absolute priority for the NDIA, so in addition to being compliant with the requirements of the Agency, provider invoices and participant claims for reimbursement need to align with the funding available for the period in which supports are delivered.
Dipping into the budget for the next funding period to top things up isn’t likely to be approved by the Agency, so service planning is vital and budget tracking a must. And remember, overspending can have serious consequences, because the NDIA has the authority to raise and pursue a debt, and there are examples on record of that power being exercised.
None of us can predict the unpredictable, so participants might like to consider a small underspend (at least during the early days of a funding period plan), so a portion of rollover funding can be held in the budget for reporting and emergencies – think of it like a form of insurance.
All of this means providers and their clients need to keep the lines of communication open and talk transparently about the funding that’s available, how to align it with the scope of services, and how to ensure supports are delivered effectively while using funding in the most impactful way.
It’s recommended providers review and update the schedule of services at the commencement of each funding period, and that a new service agreement is also considered.
With unspent funds rolling over from one funding period to the next, and pricing, circumstances, and the scope of supports all open to change, updating agreements regularly ensures supports remain aligned with the participant’s plan and the funding they have available.
